The unions said there were concerns that the proposed takeover could affect their rights and interests, which had been protected by the existing Perodua management for the past 25 years.

They urged government agencies to step forward to support them in maintaining the status quo.

The two unions are the Perodua Employees Union and Perodua Engine MFG SB Employees Union.

UMW, which owns 38% of Perodua, would have a majority holding if it succeeds in gaining a 22.5% stake now held by Med-Bumikar Mara Sdn Bhd through its subsidiary MBM Resources.

The unions said they were also concerned that Perodua’s technological partner, Japan-based Daihatsu, might reconsider its position as a partner and pull out. “If this happens, this will be a great loss to Perodua as Daihatsu’s support and contributions to Perodua are invaluable.”

Recently, The Star reported that Daihatsu was against UMW having an overwhelming stake in Perodua.

The unions said the proposed takeover had created unease and uncertainty among their members.

“We are also shocked that Mara has agreed to release their shares in Med-Bumikar Mara to UMW and this can affect Mara’s chance to help the bumiputera community. This goes directly against Mara’s aspirations,” they said.

Mara owns a 30% stake in Med-Bumikar Mara, while six founding families of the company roughly own an 11.6% stake each.

Previously, sources told FMT that it won’t be easy for Mara to sell off their stake in MBMSB as it would have to get the support of the non-Bumiputera MBMSB shareholders, but this would mean acting against Bumiputera interests.

Perodua is Malaysia’s second national carmaker and has dominated the market since 2006 when it introduced the MyVi.

The company began with the tiny Kancil in 1994, in a market then dominated by Proton, and lagged behind Proton until 2006.

Since then, Perodua has dominated the automotive market, with a market share of 40% as of January 2018.

UMW’s Perodua ‘dream’: Will Mara protect Bumiputera interests?