KUALA LUMPUR – Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said that US-based electric vehicle manufacturer Tesla never promised to build a factory in Malaysia, contrary to recent reports suggesting otherwise.
Tengku Zafrul emphasised that the report, originally published by a Thai newspaper and subsequently cited by Malaysian media, was not an official statement from Tesla.
He advised journalists to verify the accuracy of such reports directly with Tesla, as the information did not come from the company itself.
“The Investment, Trade and Industry Ministry (Miti) has never announced that Tesla would open a factory in Malaysia,” the minister said on social media platform X.
He was clarifying that while discussions with Tesla co-founder and chief executive Elon Musk had taken place to attract investment, no commitment was made to establish a Tesla factory in the country.
Addressing concerns about the government’s incentives to Tesla, Tengku Zafrul clarified that these efforts are part of the Global Battery Electric Vehicle (BEV) Leadership Initiative, designed to strengthen Malaysia’s electric vehicle ecosystem.
This initiative is open to any EV manufacturer willing to meet specific criteria, such as installing at least 50 ultra-fast chargers with a capacity exceeding 180 kWh and ensuring at least 30% of these chargers are available for public use, he said.
The initiative also requires collaboration with at least 10 local companies to develop the EV charging ecosystem, involving local contractors and equipment suppliers. This is aimed at expanding the charging network for local EV owners and boosting local participation in the EV charging industry.
Countries like China, Hong Kong, and Norway have accelerated their transition to electric vehicles through similar programmes, benefiting local SMEs by integrating them into the EV ecosystem.
Tengku Zafrul said that to date, Tesla is the only company that has applied and been approved for participation in the Global BEV Initiative, although the Malaysian government welcomes other EV manufacturers to join.
“Claims that Tesla received special treatment are inaccurate, as any company can apply for this initiative,” Tengku Zafrul reiterated.
The minister highlighted the government’s ongoing efforts to attract high-quality investments across various sectors.
He noted that from 2022 to the first quarter of 2024, Malaysia secured RM24.55 billion in EV-related manufacturing investments from companies such as Chery, Gemilang Coachwork, Samsung SDI Energy, NexV Manufacturing, and EVE Energy.
Local manufacturers are also part of Tesla’s global supply chain, providing parts, components, and factory automation systems.
In the first quarter of 2024 alone, Malaysia approved investments worth RM83.7 billion, marking a 13% increase compared to the previous year.
Tengku Zafrul expressed confidence in MITI’s continued efforts to attract quality investments that would create more jobs for Malaysians.
Yesterday, he responded to news reports claiming Tesla had scrapped plans for production plants in Southeast Asia.
He remarked: “You ask Tesla. I don’t work for Tesla,” emphasising that only Tesla could confirm such decisions.
Thai news portal The Nation reported that Tesla had abandoned plans to establish an EV factory in the region, citing sources who claimed that the company’s focus had shifted to charging stations, with factory plans suspended worldwide except in China, America, and Germany.
Despite these reports, Tesla had not formally committed to building a factory in Malaysia.
In July last year, Prime Minister Datuk Seri Anwar Ibrahim announced Malaysia’s involvement in large-scale investments from Tesla and Elon Musk’s other ventures, including SpaceX.
A spokesperson from Miti said that Tesla’s reported decision has no bearing on the ministry’s ongoing initiatives, suggesting it could be a “commercial decision” by Tesla regarding its global operations.
The spokesperson emphasised that the foreign report was “not an official statement” from Tesla and that confirmation would need to come directly from the company. – August 9, 2024
