page_title: Economy of Malaysia
section_title: Automotive
hierarchical_section_title: Economy of Malaysia / Industry sector / Automotive
caption_attribution_description: English: 2013 Proton Prevé Premium (Test Drive Car) in Glenmarie, Malaysia. Colour&#160;: Solid White Designed &amp; Assembled in Malaysia &#160;
context_page_description: The economy of Malaysia is the third largest in Southeast Asia, after Indonesia, Thailand, and is the 35th largest economy in the world. Labour productivity in Malaysia is significantly higher than in neighbouring Thailand, Indonesia, Philippines or Vietnam due to a high density of knowledge-based industries and adoption of cutting-edge technology for manufacturing and digital economy. According to the Global Competitiveness Report 2019, the Malaysian economy is the 27th most competitive country in the world.
  Malaysian citizens enjoy affluent lifestyle compared to almost all other ASEAN countries, in which only Singapore and Brunei managed to rival over. Their standard of living are closer to the Western Europe countries such as Portugal and Spain, and closely resembled the developed part of Eastern Europe such as Poland, Latvia, and Czech Republic. This is due to a fast growing export oriented economy, a relatively low national income tax, highly affordable local food, and transport fuel, as well as a fully subsidized single payer public-healthcare. Moreover, social welfare benefit with direct cash benefit transfer called Cost of Living Assistance is also in place since 2011.
context_section_description: The automotive industry in Malaysia consists of 27 vehicle producers and over 640 component manufacturers. The Malaysian automotive industry is the third largest in Southeast Asia, and the 23rd largest in the world, with an annual production output of over 500,000 vehicles. The automotive industry contributes 4% or RM 40 billion to Malaysia's GDP, and employs a workforce of over 700,000 throughout a nationwide ecosystem.
  The Malaysian automotive industry is Southeast Asia's sole pioneer of indigenous car companies, namely Proton and Perodua. In 2002, Proton helped Malaysia become the 11th country in the world with the capability to fully design, engineer and manufacture cars from the ground up. The Malaysian automotive industry also hosts several domestic-foreign joint venture companies, which assemble a large variety of vehicles from imported complete knock down (CKD) kits.
caption: The Proton Prevé, a car made by Malaysian car company Proton.
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