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Tengku Zafrul: Malaysia’s strong foundation in electrical, electronics industry reason for Tesla’s entry

Tengku Zafrul: Malaysia’s strong foundation in electrical, electronics industry reason for Tesla’s entry

06 Mar 2023

Tesla’s decision to expand its presence in the country is due to the strong foundation of the electrical and electronics (E&E) ecosystem, says Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The International Trade and Industry Minister said that this was also the same reason why Amazon Web Services (AWS) chose to invest at least RM25.5bil in the country by 2037 to set up their digital infrastructure.

“Our Prime Minister Datuk Seri Anwar Ibrahim has also announced that AWS investment will bring in high-end quality jobs for the locals and will have a spillover effect on our local economy.

“So when we talk about the automotive industries, companies like Tesla are coming here because we have the ecosystem that supports the E&E ecosystem.

“It is not so much on the incentive; it will help, but what makes Malaysia so attractive to these types of investors is that we can support the electric vehicle (EV) ecosystem,” he said.

He said this when met by reporters after the officiating ceremony of the Industry Excellence Award (AKI) 2024 at The Oasis, Johor Port, here, on Monday (March 6).

Tengku Zafrul also quoted Tesla saying that a big part of the company’s supply chain was coming from Malaysia.

“So they decided to relocate their business here, and this will have a positive impact on our economy, especially our SMEs and any new SMEs that might be created from the supply chain.

“Malaysia is actually the seventh largest E&E and semiconductor market in the world, so that is why when we invite investors to come, we must ensure that the ecosystem is also ready.

“So when they come here, they will have the support of the supply chain, vendors, services, parts, and others,” he said.

On March 1, the International Trade and Industry Ministry was reported as having approved Tesla’s application to import battery electric vehicles (BEV) into Malaysia.

Tesla would also establish a head office in Malaysia, introduce Tesla’s “experience centres,” service centres, and establish its “Supercharger” network.

On March 2, AWS was reported as saying that it would be launching a new infrastructure region in Malaysia as part of a public-private partnership with the Malaysian government.

Source: The Star