Protectionism and Trade Barriers in Automobile Industry of Malaysia

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Protectionism and Trade Barriers in Automobile Industry of Malaysia

Introduction
When we talk about the strategic industries in the manufacturing sector of Malaysia then automobile industry of the country comes in the mind which has pushed industrialization in Malaysia. As compared to other sectors like FMCG, pharmaceutical, telecom etc we can see that automobile industry has boosted the industrialization process in the country to the heights. Automobile industry of Malaysia is named as one of the main producers and the exporter of spare parts, auto components and accessories of automobiles. Countries like United Kingdom, Taiwan, Thailand, Japan, Singapore, Indonesia etc are among the major importer of automobiles of the country. The
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In the past few years the statistics shows the stagnation of Automobile sector in unites States of America, Canada and Japan. However, the automobile companies were targeting countries of South America and Asia for their new market as the economy was on a developing phase during this period. China, Brazil, Russia and India are on the target of the automobile companies in the recent path. In the first four months of 2010 the sales figure of cars and commercial vehicles in the world has reached to 17 million which was equal to 13.65 million for 2009 for the same period. During the year 2008, the increase in the oil prices results into the increase in the price of raw material and the change in the spending pattern of customers. Automobile industry is also facing challenges from public transport due to which the preference of customer for having their personal vehicle is changing. The other demoralizing factor is the increasing taxes and other duty taxes on the manufacture of automobiles. As the governments of different countries is under a huge pressure of increasing pollution and emission of green house gases they are introducing more and more policies to discourage car purchasers. It has been expected that nearly fifty one light vehicle manufacturing companies are closing in near future in United State alone. This will create a loss of two hundred thousand jobs in United States.

Automobile industry in Malaysia
Before the decade of

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