Malaysia Will Keep Wooing Global EV Brands - Zafrul

Malaysia intends to entice more companies to establish assembly plants here, following in the footsteps of top American multinational Tesla, which established its regional headquarters here last year.

The ultimate goal, according to Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz, is to have companies like Tesla establish factories here. He said that a lot of EV manufacturers are currently sourcing parts from Malaysia and that the country is stepping up its efforts in the semiconductor sector to capitalize on the expanding EV market.

“They want to realign the supply chain to ensure that the security and resiliency of (their) supply chain is there, so they are coming closer to Malaysia, and we are inviting many EV makers to come,” he said during an exclusive interview with CNBC’s Squawk Box Asia aired on Thursday.

The intention, he told the business news channel, is for electric vehicle manufacturers to increase their footprint in the nation. He cited Tesla as one of the main suppliers of charging stations in Malaysia, along with some of the biggest corporations in the nation.

Tengku Zafrul stated last month that with over 100,000 registered EVs, Malaysia has witnessed exponential growth in EV sales each year and the government is hopeful the positive momentum would continue strongly.

The minister expressed his belief that electric vehicles (EVs) could serve as a driving force behind Malaysia's manufacturing sector's export growth.

He went on to explain that electrical and electronics (E&E) products are an essential component of the supply chain for electric vehicles.

He went on to explain that electrical and electronics (E&E) products are an essential component of the supply chain for electric vehicles.

In order to enable the nation to advance up the chips industry value chain, the National Investment Council (MPN) recently decided to form a national semiconductor strategic task force (NSSTF).

Tengku Zafrul will serve as the chair of the NSSTF, which is anticipated to further strengthen the industry, which presently accounts for 10% of the global semiconductor market and 13% of chip assembly, testing, and packaging activities worldwide.

Tengku Zafrul stated in the CNBC interview that the task force emphasizes the significance of the nation's semiconductor industry, which contributes 50% of exports and 7% of the GDP of the nation.

In addition to looking to expand Malaysia's semiconductor industry, he said the team will also make sure the nation has a "talent supply chain."