In a Dewan Rakyat session, Hamzah Zainudin (PN-Larut) questioned the absence of a local equity ownership requirement for Tesla and Starlink.
In response, Prime Minister Datuk Seri Anwar Ibrahim clarified that the government’s decision to allow 100% foreign ownership for both companies are intended to stimulate economic growth and technological advancement, according to FMT’s news report.
Anwar informed the Dewan Rakyat that, in the case of Starlink, the considerations included the global organisational structure’s need for a more efficient decision-making process, alignment with the Malaysian Digital Bill of Guarantees, and the national advantages of Starlink services.
Anwar went on to detail that Tesla’s exemption from foreign ownership restrictions, which typically limit foreign individuals or companies to owning 100% equity, aligns with the government’s previous approvals for new projects, expansions, and diversification efforts in the manufacturing sector.
The equity ownership requirement was initially introduced in the New Economic Policy of 1970 with the goal of assisting Bumiputeras in achieving a 30% equity stake in businesses operating in Malaysia, though the specific mechanisms vary by industry.
Previously, Anwar had expressed his approval of the entry of companies owned by Elon Musk into the domestic market, emphasising the technological, economic, and manufacturing benefits they would bring.
