Comparative Case Study of Malaysia and South Korea Automobile Industry Competitiveness Analysis

Abstract

The Malaysian and South Korean automobile industries started to develop in the 1960s and have experienced similar economic crises. At the beginning stage, the two industries adopted the same protectionist policy while in the following decades the Korean automobile industry headed for liberalization, while the Malaysian car industry remained relatively protectionist and closed. This essay explores how these industrial policies affect the competitiveness of the automobile industry in Malaysia and South Korea. By applying the PEST (Political, Economic, Social and Technological) analysis, this paper examines the different industrial policy directions of the two case study countries from historical perspectives. How the different directions affect current performance is then examined by applying Porter’s Five Force and Diamond Theory. Finally, some suggestions for future improvement are discussed according to the research results.