Indonesia
Indonesia threatens retaliation as RIM builds factory in Malaysia. Canada-based Research In Motion recently chose to bypass Indonesia as the regional manufacturing hub for its popular Blackberry in favor of Malaysia. In response, Indonesian authorities have threatened retaliatory measures against RIM, with Industry Minister M.S. Hidayat suggesting that a value-added or luxury tax should be imposed on Blackberry imports. Previous disputes between RIM and the Indonesian government are being cited for RIM’s decision, especially Indonesia’s demands in 2010 that the company establish a data center in the country and allow monitoring of messages on its Blackberry Messenger Service. Ironically, Indonesia has one of the highest penetration levels for the Blackberry in Asia.
Toyota opening minicar plant in Karawang. Toyota Motor Corp. plans to open a new $387 million plant in Karawang, Indonesia, by 2013 to produce minicars. The company had announced in May that it would invest $176 million to expand capacity at a preexisting plant in Karawang. Toyota is the largest carmaker in Indonesia, controlling 60 percent of the market. The company’s expansion in the country is part of Toyota’s plan for emerging markets to account for half of its total sales by 2015. Toyota’s announcement comes as global automobile manufacturers are taking a new look at investing in the world’s fourth–most-populous country.
Thailand
GM opens $200 million diesel-engine plant in Thailand. General Motors opened its first Southeast Asian diesel-engine plant in Thailand’s Rayong province on September 9. The $200 million plant is adjacent to GM’s vehicle manufacturing plant and has a production capacity of about 120,000 engines a year. GM Southeast Asia president Martin Apfel said the plant is expected to produce around 100,000 engines in 2012 and will increase to full capacity in 2013.
Malaysia
Malaysia improves competiveness position in the Global Competitiveness Report. Malaysia’s position in the 2011 Global Competitiveness Report rose to 21st out of 142 economies, up from 26th last year. Malaysia is currently ranked 6th among Asia-Pacific economies and 2nd in ASEAN with a score of 5.08 points out of a maximum of 7 (72.6 percent), compared to 4.88 last year. The report cited the country’s “efficient and sound financial sector,” which ranks 15th in the report, as one of the key factors for its improvement.
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Source: Center for Strategic & International Studies, Sept. 14, 2011
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