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...to deepen the industrial strength of the Malayan-Singapore-Borneo federation?|
Let's consider the Malayan-Singapore-Borneo bloc population, 30 million strong, combined GNP US$400 billion, or per capita income of US$12,500. Automobile and other axel driven vehicle market numbers some 700,000 annually. Approximately 50% of such vehicle are domestically designed and produce, mainly Perodua and Proton.
Consider this, engine sales total probably 550,000 petrol fueled and 150,000 diesel fueled.
Proton and Perodua constitues about 300,000 of the petrol engines while the rest (mostly larger capacity are imported). From the Hong Leong Yamaha-Hicom-Boon Siew Honda joint venture in motorcycle engines, a combined effort on a single engine company could provide the economy of scale lacking in a state like our which are only half of France, UK, Italy or Spain. (each of whom have between 2 to 3 automobile companies each - except the UK)
To circumvent this market size problem while having the spirit of "Cooperation between Malayan-Singaporean economic blocs" in the spirit of "KONGSI", We could form a PETROL or DIESEL engine companies, to design or build engines for all the companies. The individual companies such as CHARTERED INDUSTRIES, ORIENTAL, TAN CHONG, LION and DRB-HICOM could form a joint venture to develop range of DIESEL engines that can be used for domestic market, and cheaply enough to export to rest of ASEAN. This could be located in Singapore.
Whereas PROTON-PERODUA-PETRONAS-NAZA-APM-ORIENTAL-HONG LEONG could form a single PETROL engine company to supply to competitively to the almost 300,000 engine market worth almost Rmb6 billion. The Petrol engine consortium can be located in Central region, Malaya.