At the October 2000 Association of Southeast Asian Nations (ASEAN) Economic Ministers meeting in Chiang Mai, Thailand, the Malaysian delegation proposed an extension of the ASEAN Free Trade Area (AFTA) tariff reduction scheme in an effort to protect Malaysia car industry. Since the development of Proton and Perodua, the national car, has received extensive government support, protection and preferential treatment, there were concerns whether in Malaysia cars would be competitive … Read more »

At the October 2000 Association of Southeast Asian Nations (ASEAN) Economic Ministers meeting in Chiang Mai, Thailand, the Malaysian delegation proposed an extension of the ASEAN Free Trade Area (AFTA) tariff reduction scheme in an effort to protect Malaysia car industry. Since the development of Proton and Perodua, the national car, has received extensive government support, protection and preferential treatment, there were concerns about whether cars would be in Malaysia to compete with other car manufacturers in the region. Malaysia, request for the extension, however, was a setback for AFTA, the hope that a strong impetus for further liberalization and globalization had would reenergize Asian foreign direct investment in the region. Following the devastating Asian financial crisis of 1997-1999
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from
Michael J. Enright,
James Newton,
Elyssa Tran
Source: University of Hong Kong
30 pages.
Publication Date: Aug 15, 2001. Prod #: HKU144-PDF-ENG
ASEAN Free Trade Area (AFTA) and the Malaysian National Car Project HBR case solution

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