Malaysian :: Business and Management Studies

Malaysian PROTON'S bonnet badge shows a tiger, but a fish might be more appropriate because the state-backed Malaysian car-maker is going from being the largest resident in the small pond of its protected local market to being a minnow in the deep waters of the global car industry. the state-backed Malaysian car-maker is going from being the largest resident in the small pond of its protected local market to being a minnow in the deep waters of the global car industry Malaysia becomes a richer, more discerning car market with lower trade barriers Southeast asia's economy is growing again, and that has triggered record vehicle sales. in Southeast Asia Malaysia is second hootest market after china is clearly the biggest [sales] opportunity for car manufacturers anywhere in Asia. Just 1 in 35 Indonesians owns a car, compared with 1 in 14 Thais and 1 in 7 Malaysians. Right now car purchasers can get loans on a new model with as little as 5% cash up front. That compares with the 20% down payments common just a few years ago. Unlike in China and India, big global auto makers aren't rushing to build manufacturing capacity in high-risk Indonesia. Proton and Perodua are Malaysia's two main domestic manufacturers, claiming over 70 percent of a market where demand is estimated at around 500,000 cars this year. Two other companies also assemble cars locally. While the government continues to encourage small and medium-scale players, there may also be a need to consider steps to consolidate among the many vendors (suppliers) in the automotive industry in order to gain scale, financial strength and managerial talent to expand internationally," Najib Razak told the conference. Political system 1. government While the government continues to encourage small and medium-scale players, there may also be a need to consider steps to consolidate among the many vendors (suppliers) in the automotive industry in order to gain scale, financial strength and managerial talent to expand internationally," Najib Razak told the conference. That suppliers power 2. Malaysia drops duties, adds tax Import duties on cars from outside Southeast Asia will be lowered to 35 percent for knocked-down models, and to 80 percent to 200 percent on fully built models, the government said. Malaysia said it would wait until 2008 to further reduce motor vehicle import duties, to the required range of zero percent to 5 p â€Å"On this basis, the government does not expect major price changes in the cars produced or assembled in Malaysia during 2005.† ercent. Market 1. Malaysia's market is too small to sustain more than one or two domestic car makers, given increasing competition from imports. 2. Malaysia Market Summary Malaysia is a member of the Association of South East Asian Nations