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2. ASEAN free trade area (AFTA) scheme effective excepting in Malaysia.(Association of Southeast...

The competition in the automotive market in ASEAN will be tighter after the implementation of the ASEAN free trade area (AFTA) scheme this year. The prospects of free trade have drawn multinational companies to invest in the region building their assembling plants. Honda Motor Corp. plans to invest US$ 98 million in a Malaysian company to start operation in 2005. Mercedes Benz from Germany is taking over the distribution of its products in this region starting Jan. 2003.

Thailand has also allowed foreign automotive companies to own 100% of the shares of a company. Malay

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