Preliminary strategic review to the Malaysian automotive industry

Abstract

The Malaysian automotive manufacturing industry has been an established industry in the country and has contributed to the country in various areas, especially in terms of economy, technology, and social upgrading. However, following the 1997 Southeast Asia currency crisis, the industry’s growth has suffered immensely and this has affected its business operations. Still saddled with this historical issue, a recuperating Malaysian automotive manufacturing industry now faces a new threat in terms of domestic market liberation, which could shrink and erode market dominance of locally produced cars, especially the Malaysian national car, even before it can regain its once former glory. To make things even worse, the global automotive industry is also undergoing one of its biggest challenges, and this too affects the Malaysian automotive manufacturing industry. This study examines the issues faced by the Malaysian automotive manufacturing industry, steps taken to address these issues, and how will it affect Malaysia’s competitiveness in the global automotive market.