PROTON's R&D facility in Shah Alam plays a strategic role
in positioning the PROTON brand for the future and in
facing challenges ahead, having already placed Malaysia
as the region's dominant automotive force. It is also
the only facility in the region with the capabilities
of designing and manufacturing a car completely.
Large scale investments in R&D has also enabled PROTON
to offer flexible services to suit individual needs. PROTON
has so far invested a total of RM4.3 billion into R&D
over the last five years and is expected to spend an additional
RM5 billion in the next five years.
Investments in R&D have also helped to mitigate foreign
exchange outflow. PROTON now buys less and less of foreign
components and the latest PROTON GEN.2 for example, is
built with more than 90 per cent local components. In
2002, from the total expenditure of RM4.98 billion on
purchase of components, some RM3.69 billion was spent
on buying local components as opposed to the RM1.29 billion
spent on buying foreign components. Being able to design
and build its own engine, vehicle platform and car as
a whole also enable PROTON to be competitive in terms
of production cost and pricing of its products compared
to when it was reliant on buying foreign components and
was dependant on foreign expertise. Investments in R&D
have more importantly given PROTON its independence as
a car manufacturer where it must be able to design, engineer
and build its own products in order to compete competitively
globally.