Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	HILTON HOTEL, KUALA LUMPUR 
Tarikh/Date 	: 	16/09/93 
Tajuk/Title  	:	THE SIGNING OF MEMORANDUM OF 
			NDERSTANDING (MOU) BETWEEN 
			DIVERSIFIED RESOURCES BERHAD (DRB) 
			AND PERUSAHAAN OTOMOBIL NASIONAL 
			BERHAD (PROTON) 



  I  am  pleased  to  be  invited  to witness the signing of
this Memorandum of Understanding (MOU)  between  Diversified
Resources  Berhad  and  Perusahaan Otomobil Nasional Berhad.
Both companies have had extensive experience  in  automotive
business.
2.    This MOU which would pave the way for the formation of
a joint venture would not only benefit both  companies,  but
also  the  nation.    It  would enhance local capability and
flexibility in automotive business.  The expansion in  local
capabilities  is  in  line  with  the  nation's  move toward
becoming   self-reliant  and     achieving     international
competitiveness.
3.   The  business  expansion  through  the  production   of
variance of PROTON model would offer the Malaysian  public a
wider choice to meet their different tastes and preferences.
It  is  important  that  the  joint venture, while providing
opportunity for  greater  participation  of  people  already
involved in the motor industry, would not cause dislocation.
4.   There   are   a  lot  of  opportunities  for  the joint
venture company to expand its business.  I would like to see
the  joint  venture  company  undertake its first project to
develop the two-door hatchback version of Proton WIRA.
PROTON will concentrate on  Sedan  and  four-door  Hatchback
version of Proton ISWARA and WIRA.
5.   The joint venture company must be prepared  to  upgrade
its  capability in terms of  facilities  and  resources  and
attain  the   level    of    competency   of  a  competitive
manufacturer.  For  this  the  joint venture company must be
willing to invest.
6.   PROTON personnel must use this opportunity  to  enhance
their    capability   in   model   development.  While   the
partnership will not  cause displacements of people, we must
be  careful  that  it will not duplicate resources.  In this
respect,  PROTON  and  DRB  should  consider  forming  Joint
Committee  or  Task  Force,  mainly  supported  by  PROTON's
personnel  in  critical  areas  of  Research  & Development,
production engineering and vendor development.
7.   I am pleased and happy that the joint  venture  company
would  start  operation  immediately.   I was told the joint
venture company would be a dealer for Automotive Corporation
Malaysia Sdn. Bhd. (ACM) products.
8.   This opportunity must be fully exploited and  it  is  a
challenge for the joint venture company to make profits even
in  the first year.  Cooperation and mutual understanding is
vital in any business undertaking.
9.   Meanwhile, necessary infrastructures must be  installed
and  be  ready  for  the launching of the two-door hatchback
version.  It is essential that costs of products  should  be
reduced  in order  to  be  competitive.  The  joint  venture
company  must  therefore  explore  all means to reduce cost.
DRB,  PROTON  and  the  Management  should  work closely and
prepare the business plan and do things innovatively.
10.    Lastly, may I wish DRB and PROTON a successful joint
venture and congratulate them for this.