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The Case of Malaysia's National Automotive Industry

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The Case of Malaysia's National Automotive Industry This electronic thesis or dissertation has been downloaded from Explore Bristol Research, http://research-information.bristol.ac.uk Author: Suffian, Firdausi Title: The Politics of Industrial Policy The Case of Malaysia's National Automotive Policy General rights Access to the thesis is subject to the Creative Commons Attribution - NonCommercial-No Derivatives 4.0 International Public License. A copy of this may be found at https://creativecommons.org/licenses/by-nc-nd/4.0/legalcode This license sets out your rights and the restrictions that apply to your access to the thesis so it is important you read this before proceeding. Take down policy Some pages of this thesis may have been removed for copyright restrictions prior to having it been deposited in Explore Bristol Research. However, if you have discovered material within the thesis that you consider to be unlawful e.g. breaches of copyright (either yours or that of a third party) or any other law, including but not limited to those relating to patent, trademark, confidentiality, data protection, obscenity, defamation, libel, then please contact [email protected] and include the following information in your message: •Your contact details •Bibliographic details for the item, including a URL •An outline nature of the complaint Your claim will be investigated and, where appropriate, the item in question will be removed from public view as soon as possible. The Politics of Industrial Policy: The Case of Malaysia’s National Automotive Industry Firdausi Suffian A dissertation submitted to the University of Bristol in accordance with the requirements for award of the degree of Doctor of Philosophy in the Faculty of Social Science and Law School of Sociology, Politics and International Studies 2018 Word Count: 82,123 Declaration I declare that the work in this dissertation was carried out in accordance with the requirements of the University's Regulations and Code of Practice for Research Degree Programmes and that it has not been submitted for any other academic award. Except where indicated by specific reference in the text, the work is the candidate's own work. Work done in collaboration with, or with the assistance of, others, is indicated as such. Any views expressed in the dissertation are those of the author. SIGNED: ............................................................. DATE:.......................... Table of Contents Abstract .................................................................................................................................................. 6 Dedication............................................................................................................................................... 7 Acknowledgement ................................................................................................................................. 8 List of Acronyms and Abbreviations ...................................................................................................... 9 List of Tables and Figures ..................................................................................................................... 11 Chapter 1 ............................................................................................................................................. 13 Introduction ........................................................................................................................................ 13 1.0 Overview of Malaysian Industrial Development ................................................................ 13 1.1 Background of the research ................................................................................................. 16 1.2 Rationale of the Study .......................................................................................................... 19 1.3 Ethnics Politics of Malaysia .................................................................................................. 20 1.4 The Case: National Automotive Policy ................................................................................ 26 1.5 Research Objectives and Questions .................................................................................... 29 1.6 Structure of the thesis .......................................................................................................... 30 Chapter 2 ............................................................................................................................................. 33 Theoretical Framework .................................................................................................................... 33 2.0 Introduction .......................................................................................................................... 33 2.1 Neo-Institutionalism ............................................................................................................ 36 2.1.1 The role of institutions .................................................................................................. 40 2.2 Developmental State and the Role of Institutions .............................................................. 45 2.3 Institutional Arrangements for Policy Making .................................................................... 56 2.4 Integrated framework: Politics of Malaysia’s Policy-Making Process ................................ 63 2.5 Conclusion ............................................................................................................................ 74 Chapter 3 ............................................................................................................................................. 76 Methodology ....................................................................................................................................... 76 3.0 Introduction ................................................................................................................................ 76 3.1 Research Methodology .............................................................................................................. 77 3.1.1 Case Study ............................................................................................................................ 80 3.2 Data Collection ........................................................................................................................... 81 3.2.1 Secondary data .................................................................................................................... 81 3.2.2. Primary data ....................................................................................................................... 83 3.3 Data Analysis .............................................................................................................................. 86 3.4 Conclusion .................................................................................................................................. 88 Chapter 4 ............................................................................................................................................. 91 The Development of the Malaysian Automotive Industry ........................................................... 91 4.0 Introduction ................................................................................................................................ 91 4.1 Overview of Malaysia’s Automotive Industry ........................................................................... 92 4.2 Development of the Automotive Industry in Malaysia ............................................................ 97 4.3 Industrial Nationalism: The Heavy Industrialisation Programme and Birth of National Car Projects ........................................................................................................................................... 102 4.4 Protectionist Policy for National Carmakers ........................................................................... 107 4.5 Localisation Policy and Vendor Development ......................................................................... 110 4.6 Conclusion ................................................................................................................................ 114 Chapter 5 ........................................................................................................................................... 117 Trade Liberalisation and the Malaysian National Automotive Policy .................................... 117 5.0 Introduction .............................................................................................................................. 117 5.1 ASEAN Automotive Industry .................................................................................................... 118 5.2 Liberalisation of Automotive Industry .................................................................................... 123 5.3 National Automotive Policy (NAP) .......................................................................................... 133 5.4 Conclusion ................................................................................................................................ 141 Chapter 6 ........................................................................................................................................... 144 The Politics of the National Car Project .......................................................................................
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