Malaysia and Indonesia should not be viewed as EV competitors, but complementary to each other

Anwar said Malaysia has produced its own batteries and would be able to offer an advantage to Tesla. “The understanding is, of course, to buy our batteries. It is cheaper and are produced locally, and (are at an) advantage, that is what they said. Why should they bring batteries from all over the world?,” he said.

Asked if the end game for Malaysia was the assembly of Tesla vehicles, Anwar replied that it was a bit too premature for that, but said that the country was ready in other areas. “What is important is we do have the capacity to produce parts or batteries required in the cars,” he said.

The PM added that Malaysia and Indonesia’s move into electrification should not be seen as a competition, as both countries could complement each other. He said both countries have a lot in common and are working very well together both in the government and private sectors.

“I think instead of being in a fierce competition, we should be able to complement each other, and that has been the ‘spirit’ of my conversation with Indonesia’s president Joko Widodo and followed through by the industries,” he said.

On the subject of foreign investors holding 100% equity shareholdings in Malaysia, as in the case of Tesla, he said it is not something new. “There have been exceptions given for the digital transformation, or information technology-related activities, or investments. We have done that in the past, (but) are very selective,” he said.

Anwar added that such a move was not a blanket procedure or policy, but dependent on the synergy and potential economic returns down the line. “If Tesla comes in, and it can benefit three or four local industries, to me, is as good as putting a 30% equity. In fact, in terms of real returns to the economy, that is better,” he explained.