Malaysia successfully attracted the prominent American electric vehicle (EV) company Tesla to establish its regional headquarters in the country last year. Now, the nation aims to entice more companies, particularly major players like Tesla, to establish assembly plants within its borders.
Tengku Datuk Seri Zafrul Abdul Aziz, the Minister of Investment, Trade, and Industry (MITI), emphasised the ultimate objective of having companies similar to Tesla build their manufacturing facilities in Malaysia, according to The Edge Malaysia.
Currently, Malaysia plays a significant role in the EV industry by supplying components worth billions to various EV manufacturers. The country is strategically focusing on strengthening its semiconductor industry to capitalise on the expanding EV market.
Tengku Zafrul highlighted the trend of EV makers realigning their supply chains for increased security and resilience, leading them to establish a closer presence to Malaysia.
The government is actively extending invitations to numerous EV manufacturers to set up operations in the country, aiming to become a hub for the growing industry.
During an exclusive interview with CNBC’s Squawk Box Asia, the Trade Minister expressed the goal of having EV manufacturers not only establish assembly plants but also expand their overall presence in Malaysia.
Notably, Tesla has already become a significant charging station provider in the country, and some of Malaysia’s largest companies serve as suppliers to Tesla.
In a recent update, he mentioned the exponential growth in EV sales in Malaysia, with over 100,000 registered EVs recorded.
Tengku Zafrul remains optimistic about sustaining this positive momentum, asserting that EVs will serve as a catalyst for the robust growth of Malaysia’s manufacturing industry exports.
