Tesla chose to invest in Malaysia because we are the 7th largest producer in the E&E, semiconductor sector

Tesla chose to invest in Malaysia because we are the 7th largest producer in the E&E, semiconductor sector

Just a few days ago, minister of international trade and industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz revealed Tesla will officially set up shop in Malaysia. This will see the American car company establish a head office here together with Tesla Experience centres as well as a Supercharger network.

According to the ministry of international trade and industry (MITI), Tesla is the first applicant of its BEV Global Leaders programme, which is aimed at boosting the demand of electric vehicles in Malaysia. The ministry also approved Tesla’s application to import EVs into Malaysia, although it isn’t known which models will be the first off the boat.

In a recent report by Bernama, Tengku Zafrul said Tesla’s decision to invest in Malaysia was due to the country’s strong electrical and electronics (E&E) ecosystem to support the manufacture of electric vehicles (EVs). In fact, he noted that Malaysia is the seventh largest producer in the E&E and semiconductor sector which supplies key components in EV manufacturing.

“The most attractive factor about Malaysia is that the ecosystem for E&E can support the EV industry. For example, Tesla said, quite a big part of its supply chain is from Malaysia so why not relocate here?” he said during a media conference after launching the Industry Excellence Award (AKI) 2024 at Johor Port on Monday.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Phaser on Mar 08, 2023 at 12:02 pm

    Seventh largest global producer in the E&E and semi-conductor sector does not equate to supply assurance for EV manufacturing. A large percentage of chips and semi conductors are for the export market and you only need to consider the disrupted production suffered by P1 and P2 last year that were a direct result of shortages in chip supply. I just hope the country is not being taken for a ride,

    Like or Dislike: Thumb up 34 Thumb down 9
    • Bla blaz on Mar 08, 2023 at 12:35 pm

      Agreed

      Like or Dislike: Thumb up 4 Thumb down 2
    • Lets See on Mar 08, 2023 at 12:58 pm

      Oh sure, its not like he is coming here because of our region rich in rare earth minerals critical for his car production. Oh nosiree.
      https://paultan.org/2021/02/05/indonesia-rich-in-nickel-has-received-an-investment-proposal-from-tesla-focus-is-on-making-ev-batteries/

      Like or Dislike: Thumb up 4 Thumb down 8
      • Hahaha…they never plan to coming here, please take a look how we treated the RE company in Malaysia..please refer to Lynas Malaysia

        Like or Dislike: Thumb up 1 Thumb down 6
    • In what ways would the country be taken for a ride? I don’t get it.

      Like or Dislike: Thumb up 10 Thumb down 3
    • Being over gungho ..A Clear and Present Danger on Mar 08, 2023 at 5:41 pm

      This TZ dude is always talking garbage.
      Last round,he threaten BMW owners,to hike fuel.
      This round,the only reason Elon the Musketeer is coming here,is to give the Tesla syiok fanboys a mini celebration,after 2 years of lockdown.

      Like or Dislike: Thumb up 5 Thumb down 8
    • kizwan on Mar 09, 2023 at 9:34 am

      Thr chip shortage was the result of MCO, not becauae of export. We don’t have MCO anymore. So, what are you talking about?

      Like or Dislike: Thumb up 11 Thumb down 3
    • kizwan on Mar 09, 2023 at 9:39 am

      The chip shortage was the result of MCO in Malaysia, not because export.

      Like or Dislike: Thumb up 8 Thumb down 4
  • X y F on Mar 08, 2023 at 12:05 pm

    All these are the hardworks and good foundation laid down by Mahathir. Putting aside his second stinct as PM, he has actually done incredibly well for Msia. His proton move might be questionable, but his vision is correct. He was the only one with the vision and push msia to be a manufacturing hub and E&E is a direct result of his initiative.

    The E&E industry as a whole is more than enough to offset whatever cons from the proton

    Compare all these to what his successors have done, Lynas, TXX, 1MDB etc ..

    Like or Dislike: Thumb up 48 Thumb down 100
    • DonkeyKong on Mar 08, 2023 at 12:16 pm

      Sohai fairytale…

      Well-loved. Like or Dislike: Thumb up 58 Thumb down 8
    • Mamakthir is the sole reason everyone in the country is having to pay crazy car prices. Are you proud that we’re top 3 in terms of most expensive car prices to income ratio, yet everyone NEEDS to buy a car because of how bad our public transport is?

      Well-loved. Like or Dislike: Thumb up 78 Thumb down 14
      • Carpro on Mar 08, 2023 at 4:50 pm

        as bad as the harm that proton brings, it has also supported alot of ancillary industries. On the other note, without direct taxes from the sale of cars, the government will surely be looking elsewhere to extract money from us the taxpayers. At the end of the day, i think the end result will surely be the same. Just my 2 cents

        Like or Dislike: Thumb up 20 Thumb down 6
        • Without proton, these industries will still exist and thrive,but under other automakers.
          Dr m stifled our growth due to his intervention of the free market and bumi policies.the result is there for all to see.

          Like or Dislike: Thumb up 17 Thumb down 6
    • Bla blaz on Mar 08, 2023 at 12:38 pm

      I can agree with this as well. Setting right foundation and next gen to improvise and implement accordingly.

      Like or Dislike: Thumb up 13 Thumb down 11
    • sloan on Mar 08, 2023 at 3:45 pm

      hey, just let mahatir retired, he has done his job, everyone apprecite if he can just retire. let the new generation do the job

      Like or Dislike: Thumb up 15 Thumb down 2
    • Being over gungho ..A Clear and Present Danger on Mar 08, 2023 at 5:46 pm

      Protong cost taxpayers close to 20 Billion Rm in repeated bailouts.What a shame.
      We could have become the Detriot of Asia,like Thailand.

      Like or Dislike: Thumb up 9 Thumb down 3
      • DonkeyKong on Mar 09, 2023 at 1:12 pm

        Detroit has become another blue state coontown that’s on the bust. If we’re the Detroit of Asia like Thailand, it just means we have a large population of low-wage disposable labor like Thailand. That’s not something to envy. We should have moved up the value chain by now instead of aspiring to be a heavy industry coontown.

        Like or Dislike: Thumb up 8 Thumb down 1
      • Li Peng on Mar 10, 2023 at 10:58 am

        Detroit is bankrupt and lies in ruins. Search for “the ruins of Detroit”.

        Like or Dislike: Thumb up 3 Thumb down 1
    • The E&E industry first started in Singapore and relocated to Malaysia because we have the qualified engineers who are all English educated at that time.

      Like or Dislike: Thumb up 9 Thumb down 1
    • Robinson on Mar 10, 2023 at 2:50 pm

      The real person who could be credited for launching the E&E industry is former Penang Chief Minister, Lim Chong Eu. Penang started attracting E&E industry back in the 70s through the PDC.

      Like or Dislike: Thumb up 2 Thumb down 1
  • Tesla chose us because we have many many gullible consumers who are willing to buy the car based on the brand rather than its reliability.

    Like or Dislike: Thumb up 43 Thumb down 9
    • Mike Tee on Mar 08, 2023 at 3:02 pm

      I have sat in many Teslas, driven one for an extended period and I want one. Every Tesla owner I have spoken too did not have any gripes about recommending the brand and Tesla is also the top of the list of most satisfied customers in the *entire auto industry*.

      But you do you Bro, you do you

      Like or Dislike: Thumb up 10 Thumb down 3
      • Hondaista on Mar 09, 2023 at 10:14 am

        Tesla is the first choice of LGBT people. Of course they won’t drive a more masculin brand.

        Like or Dislike: Thumb up 6 Thumb down 6
        • Mike Tee on Mar 09, 2023 at 11:41 am

          I feel sad for you that you think calling somebody gay is an affront and to the two other people who liked your comment.

          If you need a big car or “masculine” brand to assert your own masculinity that says a lot about you.

          Also good luck trying to beat that “gay” car off the lights in your ICE vehicle

          Like or Dislike: Thumb up 4 Thumb down 2
    • There are hardly anybody buying Tesla in Malaysia. Lol. There are so few Tesla cars on Malaysian road. Tesla invests here because we are still a low cost manufacturer but with a highly educated population. Its no brainer why they would want to come here

      Like or Dislike: Thumb up 9 Thumb down 2
      • sub_zero on Mar 09, 2023 at 5:29 pm

        im sorry to burst your bubble, but there is already a growing number of teslas on the road, heck a new service centre dedicated for tesla was recently open in my office area at PJ. also now Tesla are getting more import and i’ve already seen AP car dealer even promoting Tesla first instead of the usual vellfire/alphard

        also recently spot more on highway while i was outstation these weeks

        Like or Dislike: Thumb up 1 Thumb down 3
    • DonkeyKong on Mar 08, 2023 at 8:53 pm

      Tesla.. the number one car brand among the Rainbow People. Satu lagi usaha globalist untuk menyesatkan rakyat Malaysia secara halus…

      Like or Dislike: Thumb up 12 Thumb down 7
  • Helenesssssssssssssssss on Mar 08, 2023 at 2:00 pm

    Hello syiok sendiri minister. Please clarify two things
    1. Tesla is invited to set up its sales operation here, given the special arrangement that the Malaysian Tesla subsidiary company is fully owned by Tesla, unlike others that are partly owned by Malaysians correct?
    2. What has E&E got to do with Tesla? Do we supply any components to Tesla cars? Please clarify what do Tesla invest in Malaysia besides their EV supercharger?
    3. Does the Malaysian government pay for installing their superchargers too? How much are they investing in Malaysia?

    Like or Dislike: Thumb up 20 Thumb down 4
    • 2. Semiconductor are used also in a car’s radio touchscreen infotainment system as well as air conditioning systems. Chips also are a part of a vehicle’s safety requirements as elements such as airbags, seatbelt tensioners, ABS and stabilisation systems, and even the e-Call ‘rescue’ system work with the help of chips. Malaysia being the 7th biggest E&E exporter at the same time being a low cost country has absolutely everything to do with it. My bet is that, they are talking about producing Tesla cars in Malaysia, which is why the issue of E&E was brought up.

      3. The Malaysian government probably provide some tax incentives, that’s normal for any government considering everybody is fighting to get big companies to invest in their country. There is no way they will directly pay Tesla for installing superchargers.

      Like or Dislike: Thumb up 9 Thumb down 1
    • Tesla PCB’s are already made in Penang, but not by Tesla.

      Like or Dislike: Thumb up 2 Thumb down 0
    • Aiyaaa… Tesla not open also fault.. Open also fault.. Why people always not satisfied

      Like or Dislike: Thumb up 16 Thumb down 0
    • that’s 3 things… ha ha

      Like or Dislike: Thumb up 1 Thumb down 0
  • sarawak sarawak on Mar 08, 2023 at 2:45 pm

    Other countries like south korea have electronic technology. We have foreign companies setup electronics factory on our soil to take advantage of cheap labor. Syiok sendiri he says that….

    Like or Dislike: Thumb up 3 Thumb down 6
    • Bla blaz on Mar 09, 2023 at 1:38 am

      Elek la sarawak sarawak. I heard sarawak has its own electric supply company. They will benefit for sure. No?

      Like or Dislike: Thumb up 1 Thumb down 0
  • 3 corner fight in SEA
    Indonesia: the largest nickel reserve in the region, however lacking of highend manufacturing ecosystem, not many affluent buyers enough in the country.
    Thailand: very mature car manufacturing ecosystem, government has very strong push on EV and green cars and their policies are ahead of Malaysia. Make sense to own EV in Thailand because petrol is more than 2 times higher than Msia.
    Malaysia: Mature manufacturing ecosystem especially for highend brands (Merc, BMW, Porsche). Strongest chip and electronic manufacturing among SEA countries. The highest number of high end car ownership among SEA. However, our green initiative and policies are way behind our neighboring countries.

    Interesting to see, or Elon Musk just import from China for SEA market and kill off the discussion.

    Like or Dislike: Thumb up 18 Thumb down 1
    • Lawrence on Mar 08, 2023 at 5:30 pm

      I strongly doubt Elon Musk will manufacture their vehicles in Malaysia. So far, only Hyundai is manufacturing EVs in Indonesia and Singapore (forthcoming). His motive and objective is to introduce his vehicles into Malaysia and milk his Atas customers with probably imports from China and Germany (for those high end models). I see his only meaningful contribution to Malaysia is to build an extensive charging networks nationwide, otherwise his plan will fail badly.

      Like or Dislike: Thumb up 4 Thumb down 0
  • I think because of Anwar la..

    Like or Dislike: Thumb up 2 Thumb down 7
  • Tesla on Mar 08, 2023 at 6:50 pm

    May i know what is stopping Tesla from not setting up a full fledged factory in Malaysia?

    Like or Dislike: Thumb up 1 Thumb down 1
  • Fella on Mar 09, 2023 at 8:38 am

    You must be a donkey to believe this lol. It’s natural progression they have a market in Singapore and Thailand, we were just in between

    If anything they’ll have a factory in Indonesia not in Malaysia

    Like or Dislike: Thumb up 5 Thumb down 1
    • Few things to consider if Elon Musk decided to setup a Giga Factory in Indonesia.
      1) Giga Factory around the world typically setup near major cities like Shanghai, New York and Nevada. If they set it up near Jakarta, the city is sinking and Jawa island is prone to frequent earthquake, so as the other islands in Indonesia.
      2) The advantage it has is only Nickel reserve but their supply chain for semi-con and components are no where near to its neighboring countries.
      3) Talent pool is an issue with their HDI and GDP per capita are far lower than its competitor.
      4) They don’t have enough affluent buyers to support the sales. No car manufacturer will setup a factory in a country when the demand is low. That is why Merc, BMW, and even Porsche setup CKD here because Malaysia has high demand for these high end cars.
      5) The rest will be depending on political stability, policies and tax break

      Like or Dislike: Thumb up 13 Thumb down 1
  • GangBang Non on Mar 09, 2023 at 9:12 am

    I thought because of PMX…

    Like or Dislike: Thumb up 1 Thumb down 2
  • Areyougonnagomyway on Mar 11, 2023 at 9:40 am

    PMX said Tesla and Amazon coming here because of his stable gomen and marvellous economy…so which is which…huhu

    Like or Dislike: Thumb up 0 Thumb down 0
  • MimpiKeringKontang on Mar 12, 2023 at 12:00 am

    BYD & Neta begins construction of Thailand plant with annual capacity of 150,000 & 20,000 units respectively. Tengku ni masih syiok sendiri masuk bakul angkat sendiri. Nasib jadi abang rider je le. Kerje kilang makin kurang da

    Like or Dislike: Thumb up 0 Thumb down 0
  • Daniel Taylor on Jun 12, 2023 at 12:17 pm

    Narrow minded people. Dont know the real agenda behind this JV. try to live in other country and feel the different.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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