Dissecting the impacts of Malaysia's Protectionist Approach including the car business: AFTA ASEAN Authority WTO Househo.

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Presentation Breaking down the impacts of Malaysia's Protectionist Strategy including the car business: AFTA ASEAN Authority WTO Local Buyers Foundation 1960 - Malaysian car industry starts
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Introduction Analyzing the impacts of Malaysia’s Protectionist Policy including the car business: AFTA ASEAN Leadership WTO Domestic Consumers

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Background 1960 - Malaysian car industry starts 1984 - Perusahaan Automobil Nasional (PROTON), national auto producer is set up 1985 - Proton Saga is dispatched 1992 - Second national auto creator PERODUA is set up (essential spotlight on smaller autos) Proton Saga Perodua

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Background The Malaysian government has taken various safeguards to contend with imported autos: National Cars get half lessening in extract expense Import obligation: 140 - 300 % on traveler autos Import obligation: 5 - 30% on car parts & segments 10% Sales Tax on every single evaluated vehicle Import share on totally developed units (CBU)

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Analysis: Implications Delay Implementation of ASEAN Free Trade Area (AFTA): Malaysia is an Association\'s piece of South East Nations (ASEAN). 4 th ASEAN Summit, AFTA was started with the target of making an organized commerce range in ASEAN by 2010. Malaysia guaranteed to evacuate all assurance identifying with the national auto industry by 2003. In 2003, Malaysia requested an expansion till 2005. Malaysia has not evacuated current duties and taxes starting 2006. Striking back by Thailand: Delay in uprooting taxes and charges on palm oil. Singapore and Thailand have both instituted two-sided Free Trade Agreements with the United States in striking back.

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Analysis: Implications ASEAN Leadership: Malaysia, as establishing country needs to lead by means of illustration, else it will lose validity. WTO Membership: WTO obliges every single part state to destroy all exchange boundaries. Household Market: Limited decision and low quality .

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Analysis: Case Study Indonesia’s National Car Timor “I made it clear that in our perspective, this [i.e., charge motivating forces and tax exemptions] was an arrangement that was prejudicial against European auto producers furthermore that it was in spite of the commitments Indonesia has embraced with the WTO…” ~ European Union Commissioner for External Affairs, Sir Leon Brittan, taking after an April 23, 1996 meeting with Indonesia President Soeharto 1996 - Launched Timor Indonesia’s National Car industry was excluded from import obligation on car parts and got particular treatment 1998 - Project relinquished because of failure to contend and protests from EU & US to WTO.

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Analysis: Proton

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Analysis: Proton v. Contenders

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Analysis: Proton Projected Growth

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Recommendation: Removal of import obligation on imported autos and parts. Decrease of extract assessment on imported autos. Evacuation of extract duty discounts on national vehicles. Government auction offers in national auto makers (i.e. Proton).

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Recommendation: Proton joint organization development

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Recommendation: SWOT

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Thank you!! http://classes.maxwell.syr.edu/PSC783/2006/Malaysia/.:tslides

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