MalaysianPROTON's bonnet badge shows a tiger, but a fish might be more appropriate as the state-backed Malaysian automaker is transitioning from being the largest resident in its small market pond local protected to be a minnow in the deep waters of the global automotive industry. The state-backed Malaysian automaker is going from being the biggest resident in the small pond of its protected local market to being a minnow in the deep waters of the global auto industry. Malaysia becomes richer, more demanding auto market with lower trade barriers Southeast Asia's economy is growing again, which has triggered record vehicle sales. 1 in 14 Thais and 1 in 7 Malaysians. Right now car buyers can get loans for a new model with as little as 5% cash down. This compares with the 20% down payments that were common just a few years ago. Unlike China and India, big global automakers are not rushing to build production capacity in high-risk Indonesia. Proton and Perodua are Malaysia's two largest domestic manufacturers, claiming more than 70 percent of a market where demand is estimated at around 500,000 cars this year. Two other companies also assemble cars locally. As the government continues to encourage small and medium scale operators, it may also need to consider measures to consolidate among the automotive industry's many vendors (suppliers) in order to gain scale, financial strength and management talent. political system1. governmentWhile the government continues to encourage small and medium scale operators, it may also need to consider measures to consolidate among the many vendors (suppliers) of the automotive industry in order to gain scale, financial strength and management talent to expand scale international,” Najib Razak said at the conference. That the power of suppliers2. Malaysia lowers duties, adds taxes Import duties on cars from countries other than Southeast Asia will be lowered to 35% for disassembled models, and 80 to 200 percent for fully built models, the government said. Malaysia said it will wait until 2008 to further reduce import duties on vehicles, to the required range of 0 to 5 percent p. "On this basis, the government does not expect major price changes in cars produced or assembled in Malaysia during 2005." Malaysia's market is too small to support more than one or two domestic automakers, given growing competition from imports. MalaysiaMarket SummaryMalaysia is a member of the Association of Southeast Asian Nations
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