What Are The Effects Of The Proton Saga Towards Malaysias Economic Development?
Proton Saga entered the local automobile market in Malaysia in 1985. Since then, it has resulted in massive structural changes in the industry and in the later years, economy of Malaysia. Malaysia totally depended on Japanese made cars until 1985. A recession was caused due to the Japanese yen appreciation against the Malaysian currency. This led to a rise in price of vehicles and decreased demand. Proton-saga then helped the economy recover by increasing production. It has large advantage in the Malaysian market as unlike its other domestic competitors, proton does not have to pay either excise or 40% duty on the import of spare parts etc. This also led to increase in proton’s market share, making it the best selling passenger car in Malaysia. Proton is now one of the leading automobile brands in Malaysia with a market share of 73%. On the other hand, the success story of Proton can be directly attributed to the government policy which allows the company to make immense profits.
