A Flowchart Approach to Malaysia’s Automobile Industry Cluster Policy

Discussion Papers


by KUCHIKI Akifumi

September 2007


In this paper, we apply a flowchart approach to investigate Malaysia’s automobile cluster policy. We investigate whether the industrial cluster policy has been successful or not, suggest policy prescriptions, and propose a way to prioritize policy measures. Our flowchart approach leads to the following three policy prescriptions: (1) Malaysian firms should establish sites for exporting compact cars with automatic transmissions; (2) actors in the public, semi-public and private sector should work to upgrade skilled labor; and (3) the central government should promote liberalization and deregulation to attract foreign firms into the supporting industries.

Keywords: Malaysia, automobile industry cluster, policy prescriptions, actors, deregulation
JEL classification: G18, O18, R11

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