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Showing posts with label PROTON EDAR DEALERS ASSOCIATION MALAYSIA (PEDA). Show all posts
Showing posts with label PROTON EDAR DEALERS ASSOCIATION MALAYSIA (PEDA). Show all posts


First attempt Vlogging in Bahasa Malaysia and I do hope it didnt sound too Kelantanese. One day I shall Vlog in Kelantanese dialect. Good night.


PROTON was recently back in the limelight and again for the wrong reason or maybe for the right reason depending on which side you are viewing it from. From the dealer's view, its ugly. The public feels the dealers are pampered and needed to bulk up and from the Proton's new management point of view, the dealers are the caused for Proton's low and drop in sales. 

I would have written this blog a lot earlier but I was busy handing over the association that I was at the helm for almost 20 years, to the new President. I was the third elected President for the Proton Edar Dealers Association Malaysia or better known as PEDA and I did not offer myself for re-election at the recent annual general meeting. 

By constitution, PEDA holds an election for the post of President, Deputy President and 13 committee members every 2 years. PEDA had just completed our Annual General Meeting on 23rd February 2018 and we (and I am personally) were grateful to my dear friend Dato Madani Sahari, the Chief Executive Officer Malaysia Automotive Institute for hosting our 19th AGM.

Dato Madani has always been a good friend to PEDA and to me and is always interested in the update that we have.  

I have a lot to say on the recent spat and public outcry on Proton, not as PEDA President but as a dealer who have been with Proton for more than 20 years but that will be a topic in another blog. 


Proton Holdings Berhad has appointed Abdul Rashid Musa as the new Proton Edar Sdn Bhd Chief Executive Officer with effect from 1 February 2017 replacing Rohime Shafie. Abdul Rashid Musa is the 13th Chief Executive Officer since Proton Edar's inception and the 4th CEO since DRB-Hicom took over Proton. 

We officially met the new CEO today on his second day in office to welcome him onboard and to introduce PEDA committee members line-up. Rashid is no stranger to PEDA and the dealers. When he was Proton Chief Technical Officer, we frequently brainstorm and exchange ideas.

Since my first encounter with Rashid, I have always thought he was in the wrong department (in Proton). A man who knew Proton cars inside out, Rashid is more of a sales man than an engineer. The 52 years old, soft spoken but firm gentleman speaks with strong enthusiasm and passion about Proton cars better than the best sales man in Proton.  

The fourth in a sibling of 10 has worked at 7 automotive factories before assuming his latest position as the Chief Executive Officer of Proton Edar. Rashid has been with Toyota, Proton, Mitsubishi Japan, Lotus UK, Mercedes-Benz, Suzuki and Volkswagen.


Dato' Abdul Rahman Dahlan said in an article posted by the Star, (an extract of which, was posted at the bottom), that Dr M must answer for Proton's colossal failure; I feel the need to clarify.

1. Proton was the no 1 car maker when Tun Mahathir was the Prime Minister. 
2. Proton went downhill under Tun Abdullah Badawi premiership whom was also the Minister of Finance, the holding company of Khazanah Nasional whom was at that time, the biggest shareholder of Proton Holdings Berhad. Dato Mohammed Azlan Hashim was appointed by Khazanah Nasional as Proton Chairman and was tasked to remove Tengku Mahaleel as Proton Managing Director.
3. Dato Mohammed Azlan Hashim succeeded in removing Tengku Mahaleel when his predecessor, also a Khazanah Nasional appointee Dato Abu Hasan Kendut had failed. When Tengku Mahaleel was removed, he left Proton with RM4b in cash reserves.
4. Proton lost to Perodua as the number 1 car maker under Dato Mohammed Azlan Hashim when Khazanah Nasional was the biggest shareholder and in control of Proton.
5. Khazanah Nasional, via Dato Mohammed Azlan Hashim had reversed Tengku Mahaleel's decision to terminate EON as Proton distributor when EON refused to contribute to the R&D funds requested by Proton after the government stopped giving R&D grants for proton development. 
6. This resulted in a sales network with more than 400 dealers representation in Malaysia. This was the most destructive decision that weakens the once a strong dealership network and the start of a series of catastrophe.


Proton Edar Sdn Bhd (PESB) has appointed 52 years old Rohimee Shafie as its 11th Chief Executive Officer. Most of Proton Edar Dealers Association Malaysia (PEDA) committee members have been around since the first Proton Edar Sdn Bhd (formerly known as USPD) Chief Executive Officer, Dato Rashid Rahim. As PEDA President, I have served under 6 of the former 10 CEOs and have served all 10 CEOs as PEDA committee member, Vice-President and Deputy President. We have also been under former Proton Holdings Berhad (Proton) Managing Director Tengku Tan Sri Mahaleel, Proton Joint COO Dato Kisai Rahmat & Dato Kamarulzaman Darus, Proton MD Dato Sri Syed Zainal Abidin, Proton CEO Datuk Lukman Ibrahim and Dato Harith Abdullah. PEDA welcomes and look forward to work closely with Dato Ahmad Fuaad as the new Proton CEO.

We have seen various policies that destroys the dealers network and policies that really improved our total sales. Unfortunately, everytime a new CEO was appointed, we have to start the same bad and the good policies all over again. Ironically, arrogance and ego took the best of any newly appointed. Despite the promises made by Tan Sri Khamil Jamil when DRB-Hicom first bought over Proton, to be dealercentric, in reality Proton & PESB Management took the dealers network (except for a few favorite dealers with special treatment), akin of a thorn in a bed of roses. With plummeting sales (up to the point where dealers can hardly break even), stricter parameters were introduced restricting further dealers whom are hungry for business, to do sales.

Since DRB-Hicom took over Proton in 2012, Proton car sales has been downhill from a total sales of 141,120 in 2012, 138,753 in 2013, 115,782 in 2014 and last year 2015, Proton hit its lowest sales record of only 102,175.

Personally, I don't think DRB-Hicom management style works at Proton. There is no empowerment and decisions took longer than in the past. Reaction and responses to market sentiment is poor and do not get me started on the production deliverables of cars to be delivered to Proton car buyer. The mismatching of customers order to manufacturing production worsens on the backdrop of non-availability of cars for the dealers to sell. The communication channel from top management to the middle management and to the dealers were distorted. Whatever that was resolved and discussed between PEDA and top management was not properly minuted and communicated to middle management as well as the dealers network. With an already over congested dealers network, the addition of 29 Suzuki dealers adds on alot more burden.


PROTON EDAR Sdn Bhd has appointed Norzahid Mohd Zahudi as its 10th Chief Executive Officer on 1 October 2014 since its inception in 1995; when Proton Edar was known as USPD (Usaha Sama Proton DRB-HICOM) (11th CEO if we counted Stanley Tan who was the acting CEO after Abbas Mehad). Norzahid is also the fourth Proton Edar Chief Executive Officer since DRB-Hicom took over. Past Proton Edar Chief Executive Officers are as follows:

1. Dato Rashid Rahim
2. Abbas Mehad
3. Stanley Tan (Acting CEO)
4. Datuk Maruan Said
5. Ahmad Tifli Talha
6. Datuk Maruan Said
7. Mohamad Shukor Ibrahim
8. Ahmad Suhaimi

The majority of Proton Edar Dealers Association Malaysia (PEDA) committee members had served under all the Chief Executive Officers and have gone through two recessions (former EON dealers went through 3 recessions) and various ups and down in PROTON life cycles. Norzahid, 56 years old is not a stranger to the automotive industry nor is he to PROTON EDAR.


Left: Liew Vee Lee, Lee Lik Sai, Taha, Rashid Musa, Armin Baniaz Pahamin, Hisham Othman, Datuk Yahya Jaafar, Siaw Siew Bee, Jeff Lim, Dato Isa Indot
7 June 2013, Istana Hotel Kuala Lumpur. Except for 3 dealers, PROTON Network which comprised of all authorized Sales dealers, After-Sales dealers, branch showroom, branch service centres, management and senior management of Proton Edar and Proton Holdings Berhad gathered for the first time at the Hotel Istana in Kuala Lumpur since DRB-Hicom took over from Khazanah Nasional. The gathering was graced by Yg Bhg Tan Sri Mohd Khamil bin Jamil himself as the Executive Chairman of Proton Holdings Berhad accompanied by Datuk Lokman, Deputy Chief Executive Officer, Proton Holdings Berhad, Hisham Othman, Chief Executive Officer Proton Edar Sdn Bhd as well as other senior Management.This was my 4th Convention that I attended as the President for Proton Edar Dealers Association Malaysia.

The session that saw almost a 100% attendance with only 2 days notice given, began as early as 8am and was a much needed gathering given the disappointing overall sales in May. When the network expected Tan Sri Khamil to throw some if not many punches for the dismay sales, he remained calm and cool and seemed to understand the predicament we faced. In fact, he addresses various critical issues that is pertinent to the survivability of the network.


A GROUP of influential car dealers has recommended stripping exemptions given to vehicles if they do not meet the new safety standards.

Proton Edar Dealers Association (Peda) urged the Transport Ministry to revoke all exemptions given to 10 car models with more than 70 variants that do not meet the New Car Assessment Programme (NCAP) safety requirements.

The call follows efforts by the Malaysian Institute of Road Safety Research (Miros), an agency under the ministry, to lift motor vehicle safety standards and encourage a market for safer vehicles under NCAP.

NCAP is a collaboration signed between Miros and the Global New Car Assessment Programne on December 7 2011.

In 2011, the ministry issued a list of United Nation Economic Council for Europe (Unece) regulations for automotive assemblers and manufacturers in Malaysia to implement by January 2012.

The deadline was first extended to June last year.

Peda president, Armin Baniaz Pahamin, said to date, 70 car models and variants are still given exemption despite not complying with two items on the Unece list, namely UN ECE R94 (frontal collision system) and UN ECE R95.


FACTS: Although PROTON is now under private entity but it is still a national car and is still driven as a national project and is a major source of income to our Country. With the opposition and the public pressing against national cars and crying for the liberalization in car pricing PROTON may follow Ford's footstep soon and leave thousands unemployed.

Read more at HERE or read locally at the Star Online News at HERE.

With direct employment and its dependents of more than 100,000 people, there is no other way but for our National Cars to be on an upswing. If we do not support our national car, nobody will!!


The Competition Act 2010 was passed by Parliament in April 2010 and was enforced since January 2012 by the Malaysia Competition Commission (MyCC) which is an independent body established under the Competition Commission Act 2010. It's main role is to protect the competitive process for the benefit of businesses, consumers and the economy as well as to give foreign investors more confidence in the country's business practices. The Act governs all firms, including government-linked companies (GLCs) in all industry. We lauded the implementation but there are various issues that requires clarification.

What are the impact of the Competition Act to the automotive industry's current operation? Please note that this is my own interpretation of the act and the Guidelines issed pursuant to the implementation of the Act. We are seeking clarification from the Competition Commission on many grey areas. 

Among the key breaches of common practice in the automotive industry.

1. Car dealers are being forced to use Motor Insurance for its customer from Banks' subsidiary General Insurance company as a condition for the dealers to utilize the bank's facility granted to them. Although Bank has denied but in practice, car dealers are still being forced to use bank's own general insurance arm.

2. Interest Rate for Proton cars are fix akin of a concerted effort by all Banks which is higher than other automotive range (Para 2.5, Guidelines on Chapter 1 of the Competition Act 2010).

3. Although the Central Bank of Malaysia (Bank Negara Malaysia) had lifted the ceiling imposed for the dealer's Handling fees for already more than a year but all Banks akin of a concerted practice are still limiting Dealer's handling fee to a maximum RM600 (Para 2.5, Guidelines on Chapter 1 of the Competition Act 2010).


There were three prominent key factors conveyed by Hisham Othman, 3 weeks after his appointment as Proton Edar's Chief Executive Officer at the first engagement chaired by the new management since DRB-Hicom took over.

First being Integrity. Quoted PESB Chief Executive Officer Hisham Othman, "I am a paid employee and will never take any extra sen other than my paid salary!!". If anyone has any information on any unethical behaviour pertaining to Proton Edar Sdn Bhd, call me!! said Hisham Othman whom then gave out his personal handphone number and email address to all the dealers. This was the second time he repeated this statement. Once, was during PEDA unofficial engagement with Hisham when he adamantly stated that he just cannot comprehend anyone or any employee that tried to make any extra money from the company that feeds them.

Secondly, the dealers should and must always be treated as the Customer! "The dealers are the customer to Proton Edar. PROTON buyer are the dealer's and the end-customer but PESB's immediate customer are the dealers. Dealers will be treated as a customer. Gone were the days when Proton dealer's were being discriminated, managed through threats and forced-allocation (of cars irrespective of bookings and demand). 


Bangi, 1 August 2012. I was invited to represent the automotive industry at the exchange of Memorandum of Understanding between the Government of Malaysia and various players from the automotive sector. With the exchange of MOU, the industry had also issued an offer to almost all the graduates and future graduates of those automotive students from Community College. The event was graced by the Secretary General, Ministry of Higher Education Yg Bhg Datuk Ab Rahim Bin Md Noor.
The function that was held at the Equatorial Hotel, Bangi was co-hosted by the Department of Community College and University Malaysia Pahang and attended by approximately 1,000 guests. The Department of Community College was also recently tasked to provide highly skilled manpower to 5 corridors namely, IRDA Economic Development, NCER, ECER, SDC and SCORE to spur related industrial development in line with the Government Transformation Plan.

After the welcoming speech by Professor Dato' Dr Daing Nasir bin Ibrahim, Vice Chancellor University Malaysia Pahang, I was asked to address the audience as a representative from the industry. Below was the text prepared just in the nick of time..

Bismillah hirahmanir rahim
 Y. Bhg. Datuk Ab. Rahim Bin Md. Noor
Ketua Setiausaha, Kementerian Pengajian Tinggi


Well what can I say? The time has come to be separated from Dato Sri Syed Zainal. The following final words from him was translated from "Pesanan & Amanat Terakhir Dato Seri Syed Zainal", a humble man with a strong passion. During his tenure, Dato Sri whom always referred me as bro and preferred me to refer him also as Bro too never failed to aspire every individuals whenever he speak! He would hypnotized every members of the audience with his passion. His farewell speech was in Malay and I could not help but to translate it to English (dont laugh) to share his final words of wisdom with my readers. Of course, the translation would have been far better if Dato Sri were to translate it himself but nonetheless.....

Good day, Salam 1 Malaysia and Peace be upon all citizens of Proton that I cherished. I hope this writing meets all of you in good health, joy and aspiration in carrying out our daily tasks. As all have known, I have given up my position as the Group Managing Director of PROTON effective on the 4th July, 2012. Taking into account the balance of my leave that I need to utilize, today which is Thursday 31 May 2012 will be my last day with PROTON. 

My dear brothers and sisters, 

It was very heavy for me to write this letter as a closure to more than six (6) years of my service in PROTON. I spent days staring at a blank computer screen as it appear, there are no words that can translate what I am truely deeply feeling in my heart. How could I leave something that has such a deep and meaningful impact in my life? How may I shake the hands and say goodbye to people whom I have regarded to be a member of my own family? There is no vocabulary that can express and extend my gratitude to everyone that has worked so hard in helping me performing my duty for so long. I have nothing to offer and I cannot afford to repay all the sacrifices, hard work and time that was devoted by all parties in your effort to realize the dream of PROTON without any remorse. 


When Dato Sri Syed Zainal first came into PROTON on 1st January 2006 taking over the  hot post from Joint-MD Dato Kisai Rahmat and Dato Kamaruzaman Darus, he called upon PEDA and the dealers to support him against 45,000 unsold stocks, the worst level of stock holding in the history of PROTON. Dato Sri Syed Zainal too inherited the burden to consolidate more than 400 over-congested showrooms in the sales network and took over when PROTON lost its no 1 position as Malaysia best selling cars.

In contrast to all previous Proton Managing Directors that would dictate on policies for PEDA and the dealers to swallow, when Dato Sri Syed Zainal was first appointed, he called and met PEDA to asked for market feedback and inquired on the network's problem. There were no PROTON EDAR Chief Executive Officer then, for more than a year. The communication was a direct channel between Dato Sri Syed Zainal and PEDA. Most of the public outcry and the dealer's issues pertaining to the low quality of cars were addressed, slowly resolved and mitigated. At this juncture, Dato Sri Syed Zainal even answered to various complain in Cyberspace and internet himself as the Managing Director. He personally attended to all the complains and directly commented on various blogosphere and cyberspace. He was also the first PROTON Managing Director that extended the manufacturer's warranty for all cars to a good 5 years (from previously only 2 years).


Front Right: Ahmad Suhaimi Anuar (CEO/PESB), Hisham Othman (CEO/EON), Dato Sri Syed Zainal Abidin (GMD/PROTON), Armin Baniaz Pahamin (President/PEDA),  Abdul Rashid Musa (DRB-Hicom/PROTON)
Photos were compliment from Noor Affendi Mohd Karim.

If there was one community that was close enough to be called a family, then it must be the Proton Edar community!! When I was first born into the community via my appointment as a dealer in 1997, Proton Edar had less than 200 staff and the dealers operation department was only a two-man show managing 86 showroom and less than 100 service centres in the network. We were the number 1 biggest manufacturer and Perodua was second. Now.. Proton Edar employs more than 2,000  manpower with approximately more than 220 showroom and more than 200 service centres nationwide. The total direct employment in PROTON exceeded 12,000 employees and combined with DRB-Hicom's total workforce of 55,000 people, there are now 67,000 employment in DRB-Hicom eco-system.

Forget the 67,000 people, Proton Edar family has grown so big, that I even felt a stranger whenever I entered the Centre of Excellence complex in Subang Jaya. Once, I used to be able to walk into the building and recognise by name every single employee including the tea lady. The Proton Sales and Service Convention was one avenue that is important to foster the spirit of camaraderie within the community. As in every other years, all sales & service branches and dealers, those in regional offices nationwide as well as those attached at the Head Office were all united at the Glenmarie Ballroon, Holiday Inn, Kuala Lumpur. Click HERE for the first Blog on the Convention, this second blog is mostly picturesque blog. Again, thank you Noor Affendi Mohd Karim for the pictures (Click on picture to enlarge).


Francis Ong Wee Mun, Head of ROMS, Lee Lick Sai (VP/PEDA), Kamsani Ahmad (Group Marketing), Hisham Othman (CEO/EON), Kamarul Zaman (DRB-Hicom/PROTON), Armin Baniaz Pahmin (President/PEDA), Ahmad Suhaimi (CEO/PESB), Abdul Sidik Hamid (GM/PESB), Abu Lais Walli Mohamed

HOLIDAY INN, Glenmarie 19 May 2012. Contrary to previous convention which was either held at the Sunway Resort, Kuala Lumpur Convention Centre, One World Hotel or those of similar sizes, this year the dealers convention was held at a smaller grand ballroom at the Holiday Inn, Glenmarie making full use of assets under DRB-HICOM stable of companies.

That was not the only noticeable changes within the PROTON eco-system but the DRB-Hicom DNA was seen significantly visible at every corner. For a start, PROTON EDAR senior management was in the same uniform with a homogeneous neck tie... a prominent culture within DRB-Hicom (see Dato Sri Kamil and his management team's neck ties at HERE and see PESB at 2010 Convention and 2011 Convention). This is expected and more changes will be seen now that PROTON Group is a wholly owned subsidiary of DRB-HICOM. Yes, PROTON was successfully recently de-listed from the Kuala Lumpur Stock Exchange.

The function began with Dato Sri Syed Zainal Abidin in his usual humble but very inspiring self, extended his gratefulness to the whole network for the support extended to PROTON and apologized for some policies and deliverables that was slow in execution. Dato Sri Syed Zainal, whom is probably the only automotive Manufacturer in the world that shook the hand of all his 4,500 sales advisors nationwide in a gathering earlier this year said, his only passion was to make PROTON as the number 1 people's choice and Malaysia's best selling vehicle. However, he continued in a frustrated voice, "a Kelantanese would say 'Habih Rheng' doh!!" That sentence has many meaning but let us not speculate. Dato Sri Syed Zainal's most important message is for the owners of the dealer to take charge of his dealership and make changes. There is only so much that he can do but as an owner and the no 1 in the dealership's organisation, we can do much more.


Barely 2 weeks after DRB-HICOM obtained its shareholders's approval for the mandatory general offer to acquire all of PROTON shares, Dato Sri Mohd Khamil Jamil called to meet PEDA and others from PROTON eco-system. Dato Sri Khamil had also met Proton Vendors Association and is scheduled to meet Proton workers union too. As the President for the PROTON Edar Dealers Association Malaysia, I led my senior executive committee that was comprised of Armin Baniaz Datuk Pahamin (President), Dato Nik Izani Dato Nik Ibrahim (Deputy President), Lee Lick Sai (Vice President), S.B. Siaw (Vice President), Malkeet Singh (Secretary-General), Dato Yahya Jaafar (Hon. Treasurer), Mohd Nor Azam (Asst. Secretary-General) and Tuan Haji Aref Borhan ( Chairman, Service Sub-Committee). Dato Sri Mohd Khamil Jamil was accompanied by DRB-HICOM Group Chief Operation Officer Dato Lukman Ibrahim, Abdul Harith Abdullah (Head, Automotive & Defence);
Abdul Rashid Musa (General Manager, Group COO’s Office), Kamarul Zaman (General Manager, Group COO’s Office), Sulaiman Yahya (Head, Corporate Communications) and Balqesh Abdullah (Manager, Corporate Communications).

PEDA Vice-President Siaw Siew Bee with Abdul Rashid Musa
PEDA Secretary-General Malkeet Singh with Abdul Rashid Musa



On 18 November 2011, Bank Negara Malaysia issued a guideline (BNM/RH/GL 000-5 Guidelines on Responsible Finance) to financial institutions aimed at promoting prudent, responsible and transparent retail financing practices. The guideline that  took effect on 1 January 2012 are applicable and was issued pursuant to six (6) Statutory Acts  namely, Section 126 of the Banking and Financial Institutions Act (BAFIA) 1989; Section 53A of the Islamic Banking Act 1983, Section 201 of the Insurance Act 1996, Section 69 of the Takaful Act 1984, Section 126 of the Development Financial Institutions Act 2002; and Section 70 of the Payment Systems Act 2003.

1. The guidelines that covers all form of financing from car loan to overdraft and even credit cards will give rise to loan shark and create unproductive population. When the Banks are more stringent, it provides a better opportunity for loan shark to grow. The Guidelines provide them with a bigger population and opportunity. The loan shark industry was already at its prime even before the guideline was introduced.

2. The demographic for PROTON car buyer represents the majority of Malaysia populations with low salary but earns from multiple source of income. The commitment to pay the monthly fix housing mortgage and vehicle loan repayment is in itself a drive for many to work harder to secure their employment and be promoted which in turn enhances overall productivity.

3. The income of more than 4,500 sales advisors employed by PROTON Dealers network were badly injured when the Sales Advisors were not able to earn commission from sales when their customer’s loan application were either rejected or refused for loan processing in compliance to the BNM guidelines.

4.  The guideline had severely damaged our sales with only 30% application for loan submission in January were approved. Although Malaysia Automotive Association reported a 25% drop in sales for January 2012, PEDA believe the actual drop was more as many from January sales were the spill-over from December when customer waited for the new year to register their cars and when customer had already obtained their loan financing was before the Guideline took effect in January 2012.


DEALERS IN CRISIS! The PROTON EDAR Dealers Association Malaysia (PEDA) gathered the Central region dealers for a meeting to address current trade crisis with the implementation of Bank Negara Malaysia guideline on car loans, enforcement of Hire-Purchase Act amendments, the take-over of PROTON by DRB-Hicom and some operational issues faced by the dealers nationwide. This was the second roadshow after a successful gathering in Southern region on 1st February 2012 at HERE.

The gathering of Central Region dealers was held at the Bukit Jalil Golf and Country Resort, Langkawi Room and attended by majority. Peda committee was attended by me as the President, Dato Nik Izani Ibrahim PEDA Deputy President, Lee Lick Sai as PEDA Central Region Chairman, Siaw Siew Bee- Vice President, Datuk Yahya Jaafar Hon Treasurer & PEDA Southern Region Chairman, Malkeet Singh Secretary General, Liew Vee Lee- PEDA East-Coast Region Chairman, Wan Azmi Ahmad, Mohd Taib Jamin and Aref Borhan.

The full details of the meeting is available for PROTON EDAR Dealers at HERE but only accessible by PROTON EDAR DEALERS only. For PROTON EDAR dealers, pls email me at for access (if you do not have access).

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