Global players like Tesla needed for the development of Malaysia's EV ecosystem, says Zafrul

UPDATE: The ministry will meet with Tesla officials from the US in Kuala Lumpur on Aug 22 to seek clarification on whether Tesla will cancel plans to develop a factory in Southeast Asia. Tesla has yet to issue an official statement.

 

KUALA LUMPUR: The development of Malaysia’s electric vehicle (EV) ecosystem requires the participation of global EV players such as Tesla, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said his ministry (MITI) has a "systematic and strategic” approach in attracting investments in the automotive industry, which is not limited to just Tesla.

In the first phase, MITI’s goal is to facilitate EV car imports to ensure the domestic market quickly achieve a critical mass, whereby it will lead to at least 10,000 charging stations for public use as well as high EV usage in the Malaysian market.

"After achieving this critical mass, we will hopefully be able to attract EV producers to develop assemby or manufacturing plants in Malaysia,” the minister said when contacted on this issue.

Tengku Zafrul said that when global EV producers develop assembly or manufacturing facilities in the country under the second phase, it will also drive local automotive small and medium enterprises (SMEs) to boost their respective capacity to support the global EV producers’ supply chain by supplying spare parts, components and factory automation systems to them.

"We have an advantage, given that our semiconductor sector has been well established for more than 50 years -- and EVs certainly use a lot of semiconductors,” he said.

The minister also stressed that Tesla, as a participant in the Global Battery Electric Vehicle (BEV) initiative, definitely support the development of the EV ecosystem in Malaysia from various aspects despite not having made any commitment to open a factory here.

Tengku Zafrul pointed out that to date, Tesla has developed four experience centres in Malaysia.

Further, Tesla has surpassed the target of installing 50 charging units by setting up 52 ultra-fast chargers with a capacity of more than 180 kilowatts each at various sites in the Klang Valley, Johor, Melaka, Penang and Pahang.

In addition, he said, the Global BEV initiative also requires that at least 80 per cent of Tesla workforce are Malaysian, and this condition has been met.

Another condition that Tesla has fulfilled is from the aspect of partnership with at least 10 local SMEs in developing the country’s EV ecosystem.

"It has also partnered with five Malaysian banking groups and two local insurance firms in offering financing packages for Tesla car purchases.

"Tesla is also collaborating with local logistics companies to handle various EV-related transactions,” he said.

All this, he said, demonstrates Tesla’s seriousness in continuing its investment in Malaysia.

Tengku Zafrul also noted that only Tesla has applied and been approved for participation in the Global BEV initiative so far.