The Wall Street Journal reports that Volkswagen is set to open its first South East Asian plant in Indonesia, with the first model to roll out of the new US$47 million (RM166 million) factory to be the Volkswagen Touran, hardly a surprise in a country where MPVs are just so popular.
The WSJ quoted Volkswagen spokesperson Christoph Adomat saying this Indonesian vehicle assembly plant is to be set up as Volkswagen’s first step toward the long-term development of the ASEAN markets. The plant will first only have assembly lines for CKD packs and paint shops, but later full fledged manufacturing could be considered. As Indonesia has trade agreements with Japan, it can also use the Indonesian base to export to that country.
This first ASEAN assembly plant location could have been Malaysia but the leaders involved chose a different path to go down, so let’s see where our own path leads.
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AI-generated Summary ✨
Comments show mixed feelings about VW's decision to assemble Touran in Indonesia instead of Malaysia, with some expressing disappointment over lost investment opportunities and concern about Malaysia's competitiveness and protectionist policies. Several comments highlight that Indonesia offers lower labor costs, larger market potential, and easier business conditions, which attract foreign automakers. Others acknowledge Malaysia's skilled workforce but note political instability and high costs hinder investment. Many commenters believe Malaysia's protectionism and policy choices have caused missed opportunities for industry growth, while a few support the idea of fair foreign investment. Overall, sentiments reflect frustration over government decisions and concern that Malaysia is losing out on economic benefits, with some advocating for more open policies and less protectionism to foster industry development.