...5160: STRATEGIC MANAGEMENT SCL#3: The automotive industry in Malaysia PREPARED BY: marziana basir gm04459 SYAZwANI MUSTAFA gm04625 johan adam leong gm04319 FADZILLA ZAHRA SAMIAN GM04550 PREPARED FOR: SR. DR. HJ MAZLAN HJ HASSAN Graduate School of Management Universiti Putra Malaysia Q1. View this industry through the eyes of a CEO. Which would you regard as the three most important opportunities or threats to Mahathir’s idea? Reputation and consumer impression Merger between both Malaysia carmakers will improve the reputation of Malaysia carmaker in world’s eyes. With both manufacturers has its’ own Japanese counterparts (Mitsubishi for Proton and Daihatsu for Perodua), it will further boast the consumers’ impression of a combined quality from both makers in developing countries especially in ASEAN region. Merger can be seen as the platform for a united and consolidated effort for refinement in terms of technologies and quality control on each end product. Example is that using proven Mitsubishi’s robust engine development coupled with Daihatsu or Toyota’s ways of manufacturing and quality control (Kaizen) by utilizing the cheaper local Malaysia resource and facilities. The end product can be seen as a reliable piece of vehicle produced in the most efficient manner with lower cost and yet achieving the international standards recognition (i.e., EURO NCAP 5 start ratings). Total domination of the Malaysia automotive market Both car makers if merged may impose...
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...1.0 - Introduction of Topic In today’s modern world, the need for transportation, particularly cars are prevalent in a developing country like Malaysia. The rise of technology and innovation allow us to develop and invent quality cars for the market. However, the ever-changing demand of the consumers and the unstable amount of supply of local and foreign cars lead to government’s intervention in the market of automotive industry. On 20th January 2014, The International Trade and Industry Minister, Datuk Seri Mustapha Mohamed unveiled The National Automotive Policy 2014 (NAP 2014) in order to tackle the problem faced by local manufacturers and consumers. NAP 2014 is Malaysia’s first step towards progressive market liberalization and an attempt to find a common path of liberalization, given the political, economic and technological constraints. The policy was considered as a “balancing act” between the priorities of attracting new investments, developing sustainable industry competitiveness and safeguarding the interests of existing investors and stakeholders. This in turn will make Malaysia as a regional hub for production. ------------------------------------------------- “The loans would be for the development of tool, dies and moulds, component technology pre-commercialization, competitiveness-related activities, distribution infrastructure establishment as well as the development of energy-efficient vehicle (EEV) infrastructure,”~ Datuk Seri Mustapha Mohamed Other...
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...Industry View on Academic Programme Development: An Empirical Study Suhaidah Hussain1*, Jalal Hanaysha2, Mohd Syahril Ibrahim3 1&2Faculty of Business & Management, International College of Automotive (ICAM), 26607 Pekan Pahang, Malaysia, 2Faculty Legal Department, Universiti Teknologi Mara, Negeri Sembilan, Malaysia. ABSTRACT Automotive education trend in Malaysia is rapidly growing in both skills and academic based qualifications. There are various programmes offered by public and private educational institutions. The offers of these programmes are relevant to the automotive industry demand in Malaysia. The upstream and downstream process of automotive and service industry covers the production of automotive components, manufacturing, assembly, distribution and inspection. This study is conducted on Automotive Education Institution (“AEI”) in East Coast Malaysia which offers diplomas and undergraduates academic programmes in Engineering and Technology, in addition to Business and Management. The objective of this study is to acquire the automotive and services industry feedback prior to the development of new academic programmes. In developing new programmes for future offerings, a survey was conducted among the subsidiary companies of the automotive conglomerate in Malaysia. A survey method was used for collecting the data from 16 subsidiary companies totalling of 323 respondents from various positions. The findings indicated that AEI has the...
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...businesses in the automotive industry, property development, food and beverage and hotel management to name a few. The group traces its roots to a small motor trading company that was established by the late Tan Sri SM Nasimuddin SM Amin in 1975. That motor trading company later expanded to include used-luxury vehicles. Today, the Naza Group is led by its joint group executive chairmen – Datuk Wira SM Faisal SM Nasimuddin and SM Nasarudin SM Nasimuddin – and is one of the largest importers of used-luxury vehicles in Malaysia. The group has also evolved into a major importer and distributor of global automotive brands such as Ferrari, Maserati, Brabus, Peugeot, Kia, Chevrolet and Citroen. Aside from these brands, the Naza Group owns dealerships for Mercedes-Benz and Perodua. Besides importation and distribution, the Naza Group manufactures Kia and Peugeot vehicles at its RM500 million plant in Gurun, Kedah. The vehicles produced at this plant are for both the Malaysian and overseas markets. Apart from the automotive business, the Naza Group is also one of the largest distributors for motorcycles in Malaysia. The group is currently the sole importer and distributor for Ducati, Harley-Davidson, Piaggio, Vespa, Aprilia and Gilera. It also imports used-luxury bikes and manufactures scooters and bikes under the Naza brand at its RM30 million motorcycle manufacturing plant in Shah Alam, Selangor. Outside the automotive and two-wheeled motor vehicle industries, the Naza Group is...
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...ADMINISTRATION (OSHA) PRACTICES AND OSHA PERFORMANCE IN MALAYSIAN AUTOMOTIVE INDUSTRY GHANIM Mohmed Adeil University Putra Malaysia, Faculty of Engineering, Malaysia Mohamedadil88@yahoo.com Keywords: OSHAP; OSHAPM; Safety Performances; Financial Performances; Malaysian Automotive Industry. Summary This paper review the issues of the occupational safety and health administration practices (OSHAP) and occupational safety and health administration performances (OSHAPM) that affect the practices in Malaysian Automotive Industry. In addition, this paper discusses the OSHAP which are safety, culture, employee involvement, employee attitude, leadership style, safety and health training and last the effective communication. Not only that but to examine its impact on OSHAPM which are safety and financial performance in the automotive industry. However, this paper explores prior literatures and findings that were found by other researchers in the Malaysian automotive industry regarding these issues. Introduction Actually, the history of automotive industry in Malaysia has started at the early age of the second half of the 20th century. Several factors had played a main role in the reason behind this industry rise or in fact birth. The main reason was to strengthen this industry and decrease dependency on the agriculture sector. Not to say that agriculture is not profitable or important, but this industry will pull up the whole economic together .The reason why? Is because...
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...World Bank’s country‐classification system been in place, Malaysia would have qualified as a middle‐income country. Since then, it has continued to enjoy relative prosperity, initially as a commodity exporter of rubber, tin, then palm oil and petroleum, with total income rising at 6 to 7 percent each year from 1970 until 2000. As a result, industrial sector in Malaysia has been rapidly grow over the past few dacades. Industrial sector can be define as a category of stocks that relate to producing goods used in construction and manufacturing. This sector includes companies involved with aerospace and defense, industrial machinery, tools, lumber production, construction, cement and metal fabrication. Performance in the industrial goods sector is largely driven by supply and demand for building construction residential, commercial and industrial as well as the demand for manufactured products. When the economy contracts and consumers save more and spend less, activity in this sector drops because companies will postpone expansion and produce fewer goods. The industrial sectors are drawn for each contain a mixture of international corporations, national companies, entrepreneurial smaller and medium-size enterprises (SMEs) and informal local businesses. Each part of a sector may have different impacts and dependence on economics activity. In many of the examples, the process of changing performance in industry sectors has followed a common sequence, though the detail...
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...ESTABLISHING THE ROLE OF THE PHILIPPINE AUTOMOTIVE INDUSTRY IN THE EAST ASIAN PRODUCTION NETWORK: IDENTIFYING INDUSTRIAL ADJUSTMENT POLICIES THAT WILL FURTHER ENHANCE PARTICIPATION IN THE NETWORK AND RESPONDING TO THE CHALLENGES POSED BY CHINA’S EMERGING AUTOMOTIVE INDUSTRY1 Roberto B. Raymundo I. INTRODUCTION A. Integrating the Local Automotive Sector within the International Production Network One of the major industries that had successfully adopted both the regional as well as the global approach towards locating its production facilities and exploiting locational advantages is the automotive industry which has been predominantly driven by multinational corporations (MNCs) originating from the United States, Japan and Germany. The expansion of the production activities of these MNCs, particularly those originating from Japan, into the economies of East Asia over the past two decades have been primarily responsible for the creation of international production networks which continue to influence the extent of industrial development in the region. The international production networks in the automotive sector have made substantial contributions to East Asian economies in the form of foreign direct investments (FDI) to the host countries, creating new jobs and increasing production, establishing linkages by integrating local firms into their supply network and raising the level ...
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...headlines such as “Auto Sector Faces Numerous Challenges” and “European Carmakers Zoom in”[1] were simply reminders of the challenges his company faced. Proton had been troubled by its declining share of the domestic auto market (Exhibit 1) and consequent dwindling profits and margins. Without taking into account the government’s R&D grant in 2007/2008, the company suffered three straight years of losses from 2007 to 2010. Its finances recovered a little in 2009/2010, thanks to the government’s “cash for clunkers” incentive programme, a MYR143 million (USD48 million)[2] R&D grant from the government, and some improvement in sales. However, its net profit margin barely reached 3% — very low by industry standards — and most of its performance measures lagged behind those of the industry leaders (Exhibits 2 and 3). The stock price of Proton’s listed parent, Proton Holdings Berhad (Proton Holdings Limited), had been substantially lower than its net asset value for several years (Exhibit 3). Because of its low market to book ratio and the heavy government subsidies paid to Proton, Mr. Syed Zainal was under tremendous pressure to turn around Proton’s performance. Adding further pressure, the changing institutional environment had exposed Proton’s inability to compete. Since 2005 when the government committed to reducing import tariffs under the ASEAN Free Trade Area (AFTA) agreement, the external institutional environment became very unfavourable to Proton. Although the government...
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...R e se a rc h a n d Stat i s t i c s B r a n c h working paper 16/2009 Impact of the Global Economic and Financial Crisis over the Automotive Industry in Developing Countries UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION RESEARCH AND STATISTICS BRANCH WORKING PAPER 16/2009 Impact of the Global Economic and Financial Crisis over the Automotive Industry in Developing Countries Peter Wad Copenhagen Business School UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna, 2010 This paper was prepared by Peter Wad, UNIDO consultant and backstopped by Nobuya Haraguchi, UNIDO staff member, Research and Statistics Branch, Programme Coordination and Field Operations Division. Iguaraya Saavedra provided administrative support. The designations employed, descriptions and classifications of countries, and the presentation of the material in this report do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. The views expressed in this paper do not necessarily reflect the views of the Secretariat of the UNIDO. The responsibility for opinions expressed rests solely with the authors, and publication does not constitute an endorsement by UNIDO. Although great care has...
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...1. View this industry through the eyes of a CEO. Which would you regard as the three most important opportunities or threats to Mahathir’s idea? Reputation and consumer impression Merger between both Malaysia carmakers will improve the reputation of Malaysia carmaker in world’s eyes. With both manufacturers has its’ own Japanese counterparts (Mitsubishi for Proton and Daihatsu for Perodua), it will further boast the consumers’ impression of a combined quality from both makers in developing countries especially in ASEAN region. Merger can be seen as the platform for a united and consolidated effort for refinement in terms of technologies and quality control on each end product. Example is that using proven Mitsubishi’s robust engine development coupled with Daihatsu or Toyota’s ways of manufacturing and quality control (Kaizen) by utilizing the cheaper local Malaysia resource and facilities. The end product can be seen as a reliable piece of vehicle produced in the most efficient manner with lower cost and yet achieving the international standards recognition (i.e., EURO NCAP 5 start ratings). Total domination of the Malaysia automotive market Both car makers if merged may impose the threats to outside car manufacturers in terms of sales. In terms of sales percentage, in 2011, Perodua become the highest market share holders in local automotive industry with 30% market share while Proton comes at second with 26% market share, with a combined market share of 56%, highest in...
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...1.1 Background of Research The research is align regarding with ‘Purchasing Decisions on Proton Cars’. This study is dealing with Malaysian automobile industry. All Islamic countries hold its pride of producing automobiles by Malaysia. Proton Saga was the first ever which made Malaysia to obtain recognition worldwide for its impressive performance. This national project has progressed extensively merging with the United Kingdom’s well known automaker (Lotus International) in 1996 and the recent introduction of a new engine, the Campro (Rosli, 2006). In the year of 1984, National Car Project by PROTON was the second phase project of the development in the automotive industry. The development based of intellectual property of the industry and increment of technology level was the milestone of this project. The PROTON project, which was a joint-venture programme with Mitsubishi Motors Corporation of Japan, began its production with the PROTON Saga model in 1985 (Arshad & Iswalah, 2006). In the year of 1992, follow up of this success, Perusahaan Otomobil Kedua Sdn Bhd. (PERODUA) was launched. This success was the result of an agreement between UMW Corporation Sdn. Bhd., Med-Bumikar Mara Sdn. Bhd., Daihatsu Motor Co. Ltd of Japan, Mitsui & Co. Ltd of Japan, PNB Equity Resources Corporation Sdn. Bhd., and Daihatsu (Malaysia) Sdn. Bhd (Arshad & Iswalah, 2006). 1.2 Problem Statement Although Proton had gone through numerous achievements in the recent years, there are...
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...Industrial Marketing Management 43 (2014) 67–76 Contents lists available at ScienceDirect Industrial Marketing Management The establishment of industrial branding through dyadic logistics partnership success (LPS): The case of the Malaysian automotive and logistics industry Nor Aida Abdul Rahman a,⁎, T.C. Melewar b,1, Amir M. Sharif c a b c Universiti Kuala Lumpur, Malaysian Institute of Aviation Technology (UniKL MIAT), Lot 2891, Jalan Jenderam Hulu, 43800 Dengkil, Selangor, Malaysia The Business School, Middlesex University London, The Burroughs, Hendon, London NW4 4BT, United Kingdom Brunel Business school, Brunel University, Uxbridge, Middlesex, UB8 3PH, United Kingdom a r t i c l e i n f o a b s t r a c t Logistics partnerships across dyadic and triadic relationship networks have been the basis of extensive research in the extant literature. It is well understood that competitive advantage within logistics and distribution and within supply chains are driven by value-adding aspects of not only the core competencies of each tier in the network, but also via tangential supporting factors. It is also well understood that there is a strong relationship between logistics and distribution and marketing functions, particularly in product-based organisations. In addition to deepening our understanding of how successful partnerships throughout the source– make–deliver continuum can be optimised, this research also seeks to identify how a supporting element...
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...construction of the Medium Volume Factory, which is next to the Main Plant. Today, the Shah Alam factory is capable of producing 240 000 vehicles per year. Besides being shareholders, Mitsubishi Corporation and Mitsubishi Motors Corporation are also PROTON’s technical assistance partner and component supplier. PROTON has a total of 11 subsidiaries and 11 associate companies, which are involved in manufacturing, research and development, sales and service activities. In December 30, 1996, marked the launch of the Proton Putra, a two-door coupe, as well the production of our millionth car from the Shah Alam plant. PROTON made a major step in upgrading its engineering capabilities with the acquisition of Lotus Group International Limited, a British automotive engineering company and manufacturer of luxury sports cars in October 1996. Together, PROTON and Lotus offer large scale manufacturing capabilities with world-class engineering expertise. Despite of all these success achievement by the Proton, they also faced some hard time and failure in promoting...
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...manufacture, assemble and sell motor vehicles and related products, including accessories, spare parts and other components. PROTON produced Malaysia’s first car, the Proton SAGA which was commercially launched on July 9, 1985 by Malaysian Prime Minister, Dato’ Seri Dr. Mahathir Mohamad who conceived the idea of a Malaysian car. PROTON was publicly listed on the Kuala Lumpur Stock Exchange (KLSE) in 1992 and its shareholders include Khazanah Nasional Berhad, Petroliam Nasional Berhad, Mitsubishi Corporation, Mitsubishi Motors Corporation, Employee Provident Fund Board and other local and foreign investors. Proton Holdings Berhad, through its subsidiaries, manufactures, assembles, and sells motor vehicles and related products primarily in Malaysia. It also involves in the importation, distribution, and wholesale of motor vehicle and related parts; development and management of properties, as well as provides engineering consultancy, after-sales services, financing, and vehicle engineering services. Organization Chart (YEAR 2009) DATO’ MOHAMMED AZLAN HASHIM (Chairman) DATO’ HAJI SYED ZAINAL ABIDIN B. SYED MOHAMED TAHIR (Managing Director) TUAN HAJI ABDUL JABBAR B. ABDUL MAJID (Independent Non-Executive Director) TUAN HAJI ABDUL KADIR B. MD KASSIM (Independent...
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...REPORT UMW’s Corporate Social Responsibility Report supplements our other publications, including the Group Annual Report, our internal staff magazine “U”, regular media releases and investor updates, as well as our Group and divisional websites. This report is also a follow-up to the Group’s maiden CSR report, launched in 2008. The report brings together the Group’s economic, social and environmental performance from 2007 to 2009. We have also included some information for 2010 which was available before the collection deadline. The report covers the entire UMW Group, and those subsidiaries that are included in Group consolidated financial statements. In the Environment section of this report, we have particularly concentrated on our Automotive Division, as it is the Group’s largest profit contributor and accounts for around 60% of our physical assets and 70% of our workforce. We have also included relevant environmental data from our other divisions, to provide a more complete picture of the Group’s environmental initiatives and performance. "Corporate Responsibility is something we undertake because we want to and not because we have to!" In putting together this report, we have endeavoured to provide information that is reliable, clear, accurate, comparable, balanced and relevant. The report is structured in reference to a number of reporting guardian/principle – including ones set by Global Reporting Initiative (GRI), as well as guidelines...
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