Billionaire Elon Musk has certainly expanded his footprint in Malaysia this year as two of his companies, Tesla and Starlink, officially began operations in the country. Usually, the foreign equity of a holding is limited to 49%, which saw opposition leader Hamzah Zainudin question the government’s decision to allow both Musk-linked companies to be 100% foreign-owned.
In a written parliamentary reply, Prime Minister Anwar Ibrahim explained that the entities were allowed to operate while being foreign-owned because of the benefits the companies bring to the nation. The Communications and Digital Ministry awarded an exemption from the local equity requirement to Starlink based on the recommendation of the Malaysian Communications and Multimedia Commission (MCMC) after the company’s Malaysian arm applied for it.
Regarding Tesla, Anwar said that the exemption was in line with the government’s decision to allow 100% foreign ownership for new projects in the manufacturing sector by new and existing companies. Tesla Sdn Bhd officially launched its business here on 20 July and plans to expand its EV charging infrastructure across the country.
Meanwhile, Starlink Internet Services Malaysia Sdn Bhd obtained the Network Facilities Providers (NFP) (I) and Network Services Provider (NSP) (I) licences on 17 July 2023 with a validity period of 10 years. Its satellite internet service currently costs RM220 per month and the kit needed to operate it is being sold with a starting price of RM2,300.
(Source: The Star)
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