slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Analyzing the effects of Malaysia’s Protectionist Policy involving the automobile industry: AFTA ASEAN Leadership WTO PowerPoint Presentation
Download Presentation
Analyzing the effects of Malaysia’s Protectionist Policy involving the automobile industry: AFTA ASEAN Leadership WTO

Loading in 2 Seconds...

play fullscreen
1 / 14

Analyzing the effects of Malaysia’s Protectionist Policy involving the automobile industry: AFTA ASEAN Leadership WTO - PowerPoint PPT Presentation


  • 323 Views
  • Uploaded on

Introduction Analyzing the effects of Malaysia’s Protectionist Policy involving the automobile industry: AFTA ASEAN Leadership WTO Domestic Consumers Background 1960 - Malaysian automotive industry begins

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Analyzing the effects of Malaysia’s Protectionist Policy involving the automobile industry: AFTA ASEAN Leadership WTO' - oshin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide2

Introduction

  • Analyzing the effects of Malaysia’s Protectionist
  • Policy involving the automobile industry:
  • AFTA
  • ASEAN Leadership
  • WTO
  • Domestic Consumers
slide3

Background

  • 1960 - Malaysian automotive industry begins
  • 1984 - Perusahaan Automobil Nasional (PROTON), national car maker is established
  • 1985 - Proton Saga is launched
  • 1992 - Second national car maker PERODUA is established (primary focus on compact cars)

Proton Saga

Perodua

slide4

Background

  • The Malaysian government has taken a number of precautions to compete with imported cars:
  • National Cars receive 50% reduction in excise tax
  • Import duty: 140 - 300 % on passenger cars
  • Import duty: 5 - 30% on automotive parts &

components

  • 10% Sales Tax on all assessed vehicles
  • Import quota on completely built up units (CBU)
slide5

Analysis: Implications

Delay Implementation of ASEAN Free Trade Area (AFTA):

  • Malaysia is part of the Association of South East Nations (ASEAN).
  • 4th ASEAN Summit, AFTA was initiated with the objective of

creating a free trade area in ASEAN by 2010.

  • Malaysia promised to remove all protection relating to the national

car industry by 2003.

  • In 2003, Malaysia asked for an extension till 2005.
  • Malaysia has not removed current taxes and tariffs as of 2006.
  • Retaliation by Thailand: Delay in removing tariffs and taxes on

palm oil.

  • Singapore and Thailand have both enacted bilateral Free Trade

Agreements with the United States in retaliation.

slide6

Analysis: Implications

ASEAN Leadership:

Malaysia, as founding nation needs to lead via example,

otherwise it will lose credibility.

WTO Membership:

WTO requires all member states to dismantle all trade

barriers.

Domestic Market: Limited choice and poor quality.

slide7

Analysis: Case Study

  • Indonesia’s National Car Timor
  • “I made it clear that in our view, this [i.e.,tax incentives and tariff exemptions] was a policy that was discriminatory against European car manufacturers and also that it was contrary to the obligations Indonesia has undertaken with the WTO…”
  • ~ European Union Commissioner for External Affairs, Sir Leon Brittan, following an April 23, 1996 meeting with Indonesia President Soeharto
  • 1996 - Launched Timor
  • Indonesia’s National Car industry was exempt fromimport

duty on automobile parts and received preferential treatment

  • 1998 - Project abandoned due to inability to compete and

complaints from EU & US to WTO.

slide11

Recommendation:

  • Removal of import duty on imported automobiles and components.
  • Reduction of excise tax on imported automobiles.
  • Removal of excise tax rebates on national automobiles.
  • Government sell off shares in national car producers (i.e. Proton).
slide14

Thank you!!

http://classes.maxwell.syr.edu/PSC783/2006/Malaysia/