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Malaysia among world top 10 markets for automakers

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KUALA LUMPUR, Aug 21 — Financial information services company BMI Research has ranked Malaysia as among the top 10 most attractive markets for automakers to begin  or maintain automotive manufacturing operations.

Malaysia was also one of the top five most attractive markets in the region in BMI’s Autos Production Risk/Reward Index (RRI).

The Fitch unit gave Malaysia a score of 65.4 out of 100 in BMI’s index, exceeding the Asian average score of 58.5.

BMI cited the nation’s diverse autos production landscape, strong automotive industry policy and good logistics structure.

“Malaysia’s high rank on our Autos Production RRI is largely thanks to its diverse autos production landscape, reflecting the variety of brands being produced in the country (scoring 98.2 out of a possible 100), strong automotive industry policy (scoring 80.9 out of a possible 100) and good logistics infrastructure (scoring 74.5 out of a possible 100),” it said in its report.

Southeast Asia’s third largest economy also scored strongly on the BMI Country Risk pillar at 70.9; its stable long-and short-term economic and political environment with low operational risks was credited for a sound investment backdrop when compared to regional peers.

However, BMI said the country’s small-sized labour force and lower growth opportunities for automakers might be a deterrent.

“Dragging on Malaysia’s attractiveness are low scores of 23.6 and 43.6 out of a possible 100 for its vehicle production growth (based on our five-year average forecast) and size of labour force indicators, which lag well behind the Asia regional averages of 47.1 and 60.1 respectively,” BMI said, pointing out that this is a result of the country’s smaller population and lower growth

opportunities when compared to other countries in the region.

BMI Research is a unit of financial information services giant Fitch Group, which has operations in more than 30 countries.

 

 

Source: Malaymailonline, 21 Aug 2017

 http://www.themalaymailonline.com/money/article/malaysia-among-world-top-10-markets-for-automakers#HASJUJ0sOYcApmZR.99

Read 346 times Last modified on Friday, 25 August 2017 11:07

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