scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 2,980
AFTA The upcoming challenges to the Malaysian automotive industry Introduction Perusahaan Otomobil Nasional Berhad Proton was incorporated on May 7 1983 to manufacture assemble and sell motor vehicles and related products including accessories spare parts and other components Proton has an extensive market share in Malaysia and sells its products widely throughout the region The home market provided it with the necessary volume and viability for its success In the 1990s they have acquired about 65percent of the total sales in Malaysia This was followed Perodua which is the second national car producer They have conquered about 25percent of the Malaysian automotive market from 1995 Foreign automobile giants could not penetrate the Malaysian market because of the high tariffs and import tax imposed on foreign vehicles However it is going to be a totally different story once AFTA was fully implemented on the automobile industry ASEAN Free Trade Area AFTA was established in the fourth ASEAN summit held in Singapore in January 1992 AFTA was initiated in order to promote intra ASEAN trade investments and economic developments in this region Through AFTA the tariffs should be reduced to below 5percent by 2002 and other non-tariff barriers are to be eliminated among the ASEAN countries ASEAN car industry falls in these schemes too However Malaysia has requested a minimum two-year exemption from AFTA which is due to come into affect in 2003for its car industry and selected agricultural products It says it wants to make sure its industries have recovered from the effects of the economic downturn before throwing open its markets Foreign car giants however know that ASEAN is a strategic automotive market Currently American and Japanese auto companies have invested a lot in this region for auto industry Further new car manufacturer especially from Europe has shown interest to establish a manufacturing base in this region Is Proton ready for this kind of threat What actions have they taken to
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA