Which is the most preferable country between Thailand and Malaysia for automotive industry to invest?

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ACKNOWLEDGEMENT

There is an immense role of my supervisor, family and associations for the completion of this research study. I would be gratitude to them for supporting me and assisting me.

DECLARATION

I take oath that the entire dissertation has been completed by me and the entire work has been done by writing and no copy pasting material has been added in this dissertation.

Signed __________________ Date _________________

ABSTRACT

The aim of this research study is to examine the most preferable country between Thailand and Malaysia for automotive industry to invest. Since many literatures concern about the growth of car manufacturers in ASEAN thus first, it is crucial to classify what automotive industry seek for and how environments of host countries (Thailand and Malaysia) are in order to answer dissertation question (Comparison between Thai and Malaysian environment which country is more preferable for automotive industry. The feature allows owners to program a special key that can limit the vehicle's top speed and audio volume. For instance, one can program it so the radio won't turn on until the seatbelt has been clicked” the above example absolutely affects automobiles' sale volume and customer's preference. The higher level of technology, the greater automotive industry's benefit. The quality suppliers, market demand and etc. are automotive advantages apart from above mentioned. It sometimes depends on company's strategy. Nevertheless, politic and economy apparently tend to be two main matters that automotive industry concerns. Moreover, many Asian countries develop faster and offer preferable conditions. Therefore, studying automotive market in Thailand and Malaysia is chosen to do this dissertation. The findings of PESTLE analysis indicate that recently Thailand has more production as compare to Malaysia. The Asian economic boom period of the late-1980s to early-1990s saw dramatically increased activities in the automotive industry of Thailand. Increases in foreign investment and market demands allowed Thailand to develop its automotive production infrastructure to become the largest automotive centre in Southeast Asia.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1. Background of the Study1

1.2. Problem Statement2

1.3. Aims and Objective of the Study3

1.4. Significance of the Study4

CHAPTER 2: LITERATURE REVIEW5

2.1. Economic determinants5

2.2. Automotive industry6

2.3. The needs of automotive industry8

2.3.1 Cost8

2.3.2 Government's role and Policy9

2.3.3 Taxation and Tariff10

2.3.4 Technology11

2.4. History of Thai automotive industry12

2.5. Attractiveness of Thailand to Automotive industry13

2.5.1 Policy and Government support13

2.5.2 Market size13

2.5.3 Growth performance and Economic policies14

2.6. History of Malaysian Automotive Industry15

2.7. Attractiveness of Malaysia to Automotive industry16

2.7.1 Policy and Government support17

2.7.2 Technology Development17

2.7.3 Domestic Demand18

2.8. Reasons for Foreign Direct Investment19

2.8.1 Horizontal Multiplan enterprise19

2.8.2 Vertically integrated firms20

2.8.3 Portfolio diversification and the diversified firms20

2.9. Business facilitation22

CHAPTER 3: METHODOLOGY24

3.1. Research Design24

3.2. Research approach25

3.3. Research Framework27

3.3.1 Forces of automotive industry28

3.3.2 Malaysian and Thai environments29

3.4. Data collection30

3.5. Data Analysis and Interpretation31

3.6. Limitations33

CHAPTER 4: FINDINGS35

4.1. Analysis of Thailand Automotive industry37

4.1.1 Policies that would improve.39

4.1.2 Industrial development40

4.1.3 Other policy-driven40

4.1.4 Unity and harmony40

4.1.5 Car tax restructuring40

4.2. Analysis of Malaysia Automotive industry41

4.2.1 Traders bargaining42

4.2.2 Strategies43

4.2.3 Automotive Sector Analysis44

4.3. Comparison of Pestle Analysis of Thailand and Malaysia Automotive ...