Liberalization, Industrial Nationalism, and the Malaysian Automotive Industry

Kaoru Natsuda, Noriyuki Segawa and John Thoburn

Global Economic Review, 2013, vol. 42, issue 2, 113-134

Abstract: This paper examines the attempts by Malaysia to foster production by national automotive producers in a global industry dominated by a small number of major multinationals. Despite the use of a wide range of industrial policies, both standard import-substituting ones and more targeted policies, the main national producer, Proton, has been unable successfully to enter the automotive global value chain. We argue that Malaysia is probably faced with a choice of accepting foreign majority ownership, as with its second national producer, Perodua, or reconciling itself to Proton lagging in both technology and marketing.

Date: 2013
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DOI: 10.1080/1226508X.2013.791475

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