Malaysian :: Business and Management Studies

MalaysianPROTONS bonnet badge shows a tiger, but a fish might be to a greater extentappropriate because the state-backed Malaysian car-maker is going frombeing the largest resident in the small kitty of its protected local grocery store to being a minnow in the deep waters of the global carindustry.the state-backed Malaysian car-maker is going from being the largestresident in the small pond of its protected local market to being aminnow in the deep waters of the global car industryMalaysia becomes a richer, more recognize car market with lower tradebarriersSoutheast asias economy is growing again, and that has triggeredrecord vehicle sales.in Southeast Asia Malaysia is second hootest market after chinawareis clearly the biggest sales opportunity for car manufacturersanywhere in Asia.Just 1 in 35 Indonesians owns a car, compared with 1 in 14 Thais and 1in 7 Malaysians.Right now car purchasers can get loans on a new model with as littleas 5% notes up front. That compares with the 20% down payments commonjust a few years ago.Unlike in China and India, big global auto makers arent flush tobuild manufacturing capacity in high-risk Indonesia.Proton and Perodua are Malaysias two main domestic manufacturers,claiming over 70 percent of a market where demand is estimated ataround 500,000 cars this year. Two other companies also assemble carslocally.While the government continues to encourage small and medium-scaleplayers, there may also be a convey to consider stairs to consolidateamong the many vendors (suppliers) in the automotive industry in orderto gain scale, financial strength and managerial talent to leadinternationally, Najib Razak told the conference.Political system1. governmentWhile the government continues to encourage small and medium-scaleplayers, there may also be a need to consider steps to consolidateamong the many vendors (suppliers) in the automotive industry in orderto gain scale, financial strength and managerial talent to expandinternational ly, Najib Razak told the conference.That suppliers power2. Malaysia drops duties, adds valuateImport duties on cars from outside Southeast Asia will be lowered to35 percent for knocked-down models, and to 80 percent to 200 percenton amply built models, the government said.Malaysia said it would wait until 2008 to further reduce motor vehicleimport duties, to the required range of zero percent to 5 pOn this basis, the government does not expect major price changes inthe cars produced or assembled in Malaysia during 2005. ercent.Market1. Malaysias market is too small to sustain more than one or two domestic car makers, given increasing competition from imports.2. MalaysiaMarket SummaryMalaysia is a member of the Association of South eastmost Asian Nations