There are certain laws that affect the business environment in a certain country while there are certain policies that companies maintain for themselves. According to (Hossain, 2018), the Malaysian legal system is substantially based on the British legal system and the principles of common law. Malaysia has implement a policy called National Automotive Policy (NAP).
The policy and law that implemented by Malaysia has affect Proton Holdings Berhad in achieving their goals and objective.
The environment of Malaysia such as the condition of Malaysian roads and the highway also affect Proton Holding Behad in achieving their goals and objectives. Other than the vehicles itself, the roads and fuel needed to run them. In order to fulfill the requirement of environmental and safety regulations, Proton Holding Berhad need to push R&D to do a research on the environment of Malaysia and develop something to satisfy the requirement.