Yesterday we reported that Tesla was going to set up a sales, service and charging network presence in Malaysia, as announced by MITI minister Tengku Zafrul. He mentioned that Tesla Malaysia’s entry was made possible by MITI’s BEV Global Leaders program. But what exactly is this BEV Global Leaders program? We found some details on MITI’s website.
The BEV Global Leaders program is called “Peneraju Global Battery Electric Vehicle (BEV)” in Bahasa Malaysia on the MITI website. As you know, Malaysia’s current National Automotive Policy only allows companies with bumiputera shareholding to hold franchise APs. This is why Mercedes-Benz Malaysia has to get APs from Naza and Mazda has to get APs from Prima Merdu.
However, many EV-exclusive carmakers work on a direct to consumer, no dealer, no partner business model. Tesla is one such company. It is strict on this policy, and it has even managed to build a Tesla Gigafactory in Shanghai, China without a local partner, making it the first wholly foreign-owned plant in China.
Thus with the existing NAP policy for Franchise APs, Tesla would never be able to enter the Malaysian market without a partner for franchise APs because it simply would not qualify to obtain franchise APs to import its own cars.
This is where the Peneraju Global BEV program comes in. It allows successful applicants to receive franchise APs. According to Tengku Zafrul, Tesla is the first successful applicant of this program.
According to the requirements we found on MITI’s website, the cars imported into Malaysia have to be battery electric vehicles (no hybrids) and they also have to be SAEJ3016 Certified Level 2 Autonomous.
There are also other requirements, to be executed within 3 years of approval. The company must set up an office, sales and service centers in Malaysia. The company must also install at least 50 units of DC fast chargers with minimum charging power of 180 kW, and at least 30% (15 units) of these chargers must be open for the public to use, allowing usage by electric cars from other brands.
The company must also hire and develop the skillsets of at least 100 Malaysians. The total workforce of the company must be at least 80% Malaysian. The company must train at least 5 students from higher education institutions through industrial internship.
The company must also cooperate with at least 10 higher education or TVET centres for knowledge transfer on BEVs/BMS/EV chargers or other related technologies. It must also cooperate with at least 10 local companies and use local contractors for local charging networks.
This program currently runs from now up to 31 December 2025. After that, I suppose applicants to this program such as Tesla will have to renegotiate with the government on the status of their Franchise APs.
So what do you think of this program? Is it a fair deal for Malaysia?
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syukur mas elon dah boleh masuk pekema pasni
Rechargeable Battery Electric Vehicles.
Now we get to develop local assembly and production for Battery, Chargers, scrapping facilities, emergency battery fire rescue team, etc.
For CBU you pay cukai membela to AP cronies, CKD you also pay cukai membela to other cronies. Wonder when can they become a useful member of society and contribute something.
Gov should start give incentives for those who trade in their ice car of not more than 10 years will get 30k rebate when switching to ev
What do Malaysia get in return?
Pride lah. You know, face is important. We cannot let Indon gets all the limelight. We want as pie of it. Franchise pun franchise lah. Janji Tesla’s office have some documents related to Malaysia.
How on earth a joker name like Mc Farren can get AP from the government?!?
Ya, we all know who benefit from this AP thingy
50 dc 180kW chargers. That’s going to be hellla expensive, especially if need to install substation…
Correct, 180kW is approximately 300A 3 phase, like a large chiller used for cooling a building. Will definitely need an 11kV substation to step down and handle the huge load. There’s no way TNB can supply such a load with a normal 100A 400V supply. Plus the need to pull the cable to remote locations at R&Rs, thrunk roads etc and upstream side of TNB need to upgrade the contribution costs will be enormous. Your typical showroom or workshop using 100A 3phase will not be prepared to offer such a high power.
Local industry development objectives are met without middlemen adding to costs. Why not?
Local industry development objectives are met without middlemen adding costs. Why not?
after feeding all the cronies with easy money. what is the benefit of us the rest of malaysian get in return? 22 of the ap company, non of it turn innovative or come out with their own products. so what is the difference?
McFarren selling McLaren..
this really made my day..
Guess that is what Sleepy fake AP kings have been doing since given free by previous-previous government to give themselves a good fat laugh.
Looks how these companies are benefiting with such policy for many years.
Thank you for the good info. Appreciate it.
this ap nonsense is sickening
The AP policy system needs to go, it’s disgustingly an upward redistribution of wealth, which is the opposite of what the government is currently wanting to do.
from the onset, AP is not a fair deal, period. lucky Malaysia that all the foreign brands are still keen to enter and found a local partner. else we could be a nation of driving protons and other brands of CKD products only.
i would like you all to take a step back and think. that a company has to waste money installing 50 x 180kw chargers just bcos they were born with the wrong skin colour.
lets say 500k per charger. 25 million ringgit?
undoubtedly the cost of these chargers are going to be built into the price of tesla malaysia cars because someone has to pay for it and it sure as hell isnt gonna be elon. its gonna be tesla malaysian owners.
we are gonna see super expensive teslas compared to thailand as a result
It’s the same concept for Tesla all over the world. Some of the cost is priced into the car of course but the rest will be covered by users. They did not say the charging will be free.
In fact, it would probably be a profit centre as charging stations will have other businesses around it like f&b outlets, convenience stores etc2..
More Competition WITHOUT AP is now the GAME in EV industry. NIO, XPENG , LiAuto , GWM , etc will now be interested to come to Malaysia WITHOUT …”Babassss” sucking the BUYERS( Rakyat ) dry for AP !!!
Of course not. The huge profits from the sales of Tesla would not justify the the small number of employees and the limited training and skill transfer to the interns.
All the requirements are actually very beneficial to Malaysia but only if there is bumiputra-ONLY to whatever contractors, internships, local suppliers etc. I am not sure if there is such a policy but I really hope there is none. Then Malaysia can really move on…
I thought AP shall be abandon. .
Fair
it sounds like a good programme but its too short. A min 5yrs to 10 yrs shld be the idea. Orherwise those under internship will not have enough time to make practical use of their skills. Plus the capex required by the programme is quite substantil and it has to make business sense.
These AP holders are blood suckers. They do not pay taxes as basically, what they sell is capital gains, which means zero taxes. They get AP from gomen for say RM100 and sell to mercedes for say RM30k. Now you onow why country is getying poorer, consumers and citizens getting a raw deal.
But politicians get contributions from these AP guys which is not a bribe as its for party funds.
thats not true. if trading the item that has capital gains is your main business activity, you are taxed. thats why full time stock traders are still taxed.
I have confirmed and paid booking for a cybertruck… anybody have any info when it can be made available in Sabah Malaysia?. Please do not forget Borneo Malaysia is 2 third of the country and provide for our share of installations here.