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Liberalization, Industrial Nationalism, and the Malaysian Automotive Industry

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  • Kaoru Natsuda
  • Noriyuki Segawa
  • John Thoburn

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.

Suggested Citation

  • Kaoru Natsuda & Noriyuki Segawa & John Thoburn, 2013. "Liberalization, Industrial Nationalism, and the Malaysian Automotive Industry," Global Economic Review, Taylor & Francis Journals, vol. 42(2), pages 113-134, June.
    • Handle: RePEc:taf:glecrv:v:42:y:2013:i:2:p:113-134
    DOI: 10.1080/1226508X.2013.791475
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