It remains to be seen whether Kuala Lumpur is jumping the gun by agreeing to entertain a bid from General Motors of the US for Proton Holdings. What is clear, however, is that Malaysia’s national carmaker is familiar terrain for GM.

Like GM, Proton has lost market share to Japanese and Korean rivals. According to auto consultancy CSM Worldwide, Proton’s domestic market share has more than halved from 55 per cent in 2001 to 26 per cent last year. It enjoys strong state support and has clocked up its share of quarterly operating losses. It faces a still bumpier road ahead as import duties are slashed under free trade agreements, making it easier for foreigners to access the market. Proton, established as Malaysia’s national carmaker in 1983, is also running short of allies: Japan’s Mitsubishi Motors’ memorandum of understanding will expire next month.