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Nikkei Markets

Malaysia considers restricting vehicle imports

Auto trade body criticizes move, flags warranty risk to biodiesel program

Proton cars at a showroom
Once Malaysia's top carmaker by volume, Proton suffered a steady decline in sales as years of quality issues marred its image.   © Reuters

KUALA LUMPUR (Nikkei Markets) -- Malaysia said Monday it plans to study prospects of restricting imports of cars from some countries in a bid to boost local vehicle manufacturing, a proposal that drew swift criticism from the domestic automotive trade body.

The government should liberalize the industry for growth and create level playing field to compete with Thailand and Indonesia, Malaysian Automotive Association's President Aishah Ahmed told reporters. A new national car project would also disrupt the domestic automotive industry, she said.

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