MalaysianPROTON's hood badge shows a tiger, but a fish might be more appropriate as the state-backed Malaysian automaker is transitioning from being the country's largest resident small pond from its protected local market to that of minnow in the deep waters of the global automobile industry. The state-backed Malaysian automaker is transitioning from being the largest resident in the small pond of its protected local market to becoming a miner in the deep waters of the global auto industry. Malaysia is becoming a richer and more demanding automotive market. with reduced trade barriers, Southeast Asia's economy is growing again, which has sparked record vehicle sales. In Southeast Asia, Malaysia is the second hottest market after China, and it is clearly the biggest [sales] opportunity for automakers in Asia. Only 1 in 35 Indonesians own a car, compared to 1 in 14 Thais and 1 in 7 Malaysians. Currently, car buyers can get loans for a new model with as little as 5% cash up front . Unlike China and India, the world's major automakers are not rushing to build production capacity in high-risk Indonesia. Proton and Perodua are Malaysia's two major domestic manufacturers, boasting over 70% down payment. percent of a market where demand is estimated at around 500,000 cars this year. Two other companies also assemble cars locally. As the government continues to encourage small and medium players, it may also be necessary to consider consolidation measures among the automotive industry's many sellers (suppliers) in order to gain scale, financial strength and talent management. “To expand internationally,” Najib Razak said at the conference. , financial strength and managerial talent to expand internationally," Najib Razak said at the conference. This power of suppliers2. Malaysia drops customs duties and adds taxes. Import duties on Cars from outside Southeast Asia will be discounted 35 percent for knocked-down models, and 80 percent to 200 percent for fully built models, Malaysia's government said. said it would wait until 2008 to further reduce import duties on vehicles, to the required range of zero percent to 5 percent. to major price changes for cars produced or assembled in Malaysia in 2005. » percentage.Market1 The Malaysian market is too small to support more than one or two domestic car manufacturers, given increasing competition from imports.2. . MalaysiaMarket SummaryMalaysia is a member of the Association of Southeast Asian Nations