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Should Malaysia Liberalise Its Automotive Industry After 30 Years of Protectionism?
Should Malaysia Liberalise Its Automotive Industry After 30 Years of Protectionism?
This question is both timely and complex. For three decades, Malaysia has maintained protectionist policies to nurture its automotive sector, particularly in support of national car projects. The debate now is whether the industry is ready to stand on its own or whether strategic protection remains necessary.
Interestingly, protectionism is not unique to Malaysia. The United States, despite being home to some of the world’s largest automakers, is currently reintroducing protectionist policies to safeguard its automotive and electric vehicle industries against global competition. Similarly, China has sustained protective measures for more than 62 years, ensuring that its domestic automotive sector remains competitive and strategically important.
The key consideration, therefore, is not simply whether Malaysia should liberalise, but how and when liberalisation should take place. A nuanced approach is needed to balance global competitiveness, industrial sustainability, and national interest.
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