Liberalization, Industrial Nationalism, and the Malaysian Automotive Industry

Kaoru Natsuda, Noriyuki Segawa, John Thoburn

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24 Citations (Scopus)


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.

Original languageEnglish
Pages (from-to)113-134
Number of pages22
JournalGlobal Economic Review
Issue number2
Early online date24 May 2013
Publication statusPublished - Jun 2013


  • automotive
  • global value chain
  • industrial policy
  • Malaysia
  • motor
  • Proton

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