The presence of AFTA or Asean Free Trade Area is one of the important factors that need to be considered.
According to (Management Paradise, 2015), currently most of ASEAN region are free trade or 96% of the entire ASEAN trade. On January 1992, AFTA was established to eliminate tariff barriers among the Southeast Asian countries. AFTA. Since Malaysia has two carmakers which are Proton and Perodua, the government want to protect their interest.
Besides that, based on (Management Paradise, 2015), Malaysia had implement a policy called National Automotive Policy (NAP). This policy was introduced in 2006. The main objective of NAP is to promote a competitive and sustainable domestic automotive industry especially the national car manufacturers and to develop Malaysia as a regional automotive hub in Energy Efficiently Vehicle (EEV). Performance of the Malaysia automobile industry in 2013 is the sales of passenger and commercial vehicles increased by 3.9% to 652,120 from 627,753 in 2012.
The presence of AFTS and the policy which is National Automotive Policy (NAP) that implemented by Malaysia, it does give impact to Proton Holdings Berhad’s objectives and goals