Malaysia has set its sights on a larger part EV supply chain business grows as competition intensifies in Southeast Asia teslaAnnounced the establishment of regional headquarters in Malaysia.
“Electric vehicles happen to be our top priority,’ Malaysia’s Prime Minister Anwar Ibrahim told CNBC’s Martin Soong in an exclusive interview on Friday at the prime minister’s office in Putrajaya, south of the country’s capital, Kuala Lumpur.
Tesla’s groundbreaking move with Malaysia will boost Southeast Asia’s position in the electric vehicle supply chain and first transaction According to the country’s Global Leaders in Battery Electric Vehicles initiative.
The deal also gives the U.S. automaker an opportunity to expand into new markets as growth slows in China and other major markets.
Under the terms of Tesla’s deal with Malaysia, the electric carmaker will be able to sell its Shanghai-made EVs directly without any import duties or middleman markups.
Tesla will also Establish A Selangor Regional Headquarters and Service Centerequipped with advanced diagnostic tools, and equipped with well-trained Tesla technicians.
Tesla users will eventually have access to a network of charging stations in the country’s major metropolitan areas, with the first planned for central Kuala Lumpur.
Tesla also plans to start EV battery manufacturing in Malaysia.
Anwar said Malaysia was open to more investment in electric vehicles, including from Chinese automakers. He said that while the Chinese automaker “has not made a request”, “the possibility exists”.
When foreign companies such as Tesla invest in Malaysia, there will be synergies, he said, adding that “it can Benefit three or four local industries“.
Tesla exemption
Malaysia has long had a bumiputera policy that favors indigenous peoples, including the majority Malay-Muslim community and non-Malay bumiputera groups.
Foreign companies established in Malaysia must meet the minimum 30% Bumiputera shareholding requirement, but Tesla is exempt from the shareholding rule.
Anwar said in an exclusive interview: “For me, (Tesla transaction) is equivalent to investing 30% of the equity.” The CNBC conversation later this week.
“In fact, in terms of real returns to the economy — it’s better.”
After being sworn in as Malaysia’s 10th prime minister last year, Anwar pledged to fight corruption and create a “Malaysia for all Malaysians”, but he has come under fire for seeking to abolish bumiputera privileges.
Tesla Inc.’s signage is seen during the launch of the Model Y electric car in Kuala Lumpur, Malaysia, Thursday, July 20, 2023.
Bloomberg | Bloomberg | Getty Images
“It’s not a matter of dismantling, it’s a matter of refocusing areas of focus, which is important,” Anwar said.
“For example, the issue of affirmative action — stretching from race-based to needs-based — we can’t talk about pure meritocracy.”
Incentives for technology transfer
Tesla’s waiver of the 30% stake requirement is not the only time Malaysia has given such incentives.
“This is nothing new. There are exceptions for digital transformation, IT-related activities or investments,” the prime minister said. “We’ve done that in the past — very selective. So it’s not just Elon Musk, I think the country needs him so badly to bring confidence and engagement to our players.”
Tesla’s announcement came after the Chinese automaker Zhejiang Geely Ten Million Dollar Plan Expanding its presence in Tanjung Malim, Perak and German chipmaker Infineon Technologies‘ 5 billion euros ($5.46 billion) expansion That Kulim Waterworks in Kedah.
Anwar’s government has been quick sell surge in foreign investment result of political stability It has been brought to the table.
Net foreign direct investment inflows to Malaysia were 3.1 billion ringgit ($666.9 million) in the quarter ended June 30, down from 12 billion ringgit in the previous quarter, according to the statistics. official data.
“Incentives should be given, but in my opinion training is more important than fairness,” Anwar said.
“it is technology transfer — Is it ready to continue to move and train our personnel, and to change terms based on our current priorities? “
be prepared
Still, Anwar is hesitant to build a full EV assembly line.
“Well, it’s too early to make a commitment,” he said, when asked if Malaysia intended to be an “end game builder” and climb the supply chain. “But the important thing is that we do have the capacity to produce what the car needs battery parts.”
Anwar pointed to Geely’s deepening partnership with Malaysia’s national car brand Proton as an example, suggesting it was not ready yet.
But Malaysia is ready to produce EV batteries.
“Yes, the understanding is of course to buy our batteries,” Anwar said. “And it’s cheaper to produce locally. That’s the advantage.”
Neighboring Indonesia, meanwhile, has been courting Tesla for years but has yet to form any tangible partnership with Elon Musk on its EV ambitions.
Anwar said Indonesia was “our important neighbor and we have a lot in common”.
“We work very well together in government and the private sector. I think we should be able to complement each other rather than get into a fierce competition,” he told CNBC.
“This is the spirit of the series of conversations our government has had with President Joko Widodo, and it is the spirit followed by the industry as a whole.”
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