KUALA LUMPUR, July 11 — The meeting between Prime Minister Datuk Seri Anwar Ibrahim and Tesla Inc chief executive officer Elon Musk will prompt a chain reaction in the nation’s journey towards becoming an electric vehicle (EV) hub in the region, an economist said.
Sunway University economics professor Yeah Kim Leng said a fruitful discussion between the global EV giant and the Malaysian leader, expected within the week, will lead to further commitments that could benefit the Malaysian economy in general.
Regardless of the nature and value of the investment Tesla intends to bring to Malaysia, Yeah said any forthcoming commitment made in the meeting will greatly boost the country’s EV industry.
“Iconic investments typically have larger spillover effects through enhancing, strengthening local and foreign investor confidence as well as crowding in investments.
“This could open up more opportunities for the suppliers, service providers as well as parts and components manufacturers to actively engage with the EV industry,” he told Bernama.
On July 7, Anwar, who is also finance minister, announced he will meet Musk to explore ways the latter’s mega EV company can further its investments in Malaysia.
On that note, Yeah said the meeting will bring about positive effects as it affirms the government’s economic direction to pursue high impact, high-value foreign direct investment (FDI), and boost the thrust towards clean energy.
“Malaysia’s FDI numbers will continue to edge up should the meeting result in Musk or any of his numerous frontier projects finding a footing in the country,” he said.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the potential collaboration between Malaysia and Tesla is not limited to the EV sector.
“What we want is to attract more … investment commitments to the automotive sector and other sectors we can market within Malaysia,” he said.
Tesla, an EV designer and manufacturer headquartered in Texas, the United States, will be making its official debut in Malaysia in Kuala Lumpur on July 20.
The nearest Tesla official service centre is located in Singapore and owners from the Greentech leasing programme have been sending their cars back to Hong Kong for major work.
In the meantime, Malaysia Automotive, Robotics and IoT Institute chief executive officer Azrul Reza Aziz expressed confidence the meeting between Anwar and Musk will pave the way to a fruitful collaboration between Malaysia and Tesla in the near future.
“We are thrilled about the possibilities that lie ahead (as a result of) the meeting. The possibility of Tesla increasing further investments in Malaysia will contribute to our nation’s economic growth and enable the development of a sustainable and environmentally friendly mobility ecosystem,” he said.
— Bernama
