Zafrul Sheds Light On Tesla Factory Rumors & Global BEV Initiative

Datuk Seri Tengku Zafrul Tengku Abdul Aziz, the Minister of Investment, Trade, and Industry (MITI), has released a statement addressing the highly publicised news about Tesla’s commitment to Malaysia and the speculated shortfall in Southeast Asia.

This comes after a report by Thai newspaper The Nation which has been widely published here claimed that Tesla had withdrawn any factory commitments in Southeast Asia.

In his statement, Tengku Zafrul urged Malaysian media to verify claims and information directly with Tesla, rather than rehashing information from unnamed sources. However, he may not be aware that Tesla has globally disbanded its PR department, making it nearly impossible to obtain details or official statements from Tesla, including in Malaysia.

Tengku Zafrul further clarified that MITI has never announced that Tesla would be opening a factory in Malaysia. While discussions have indeed taken place between Malaysian officials and Elon Musk as part of efforts to attract investment, Tesla has not committed to building a factory in the country.

Was Malaysia’s Investment in Tesla a Waste of Time?

Absolutely not, according to Tengku Zafrul. He explained that a broader strategy is at play. The Malaysian government introduced the Global Battery Electric Vehicle (BEV) Leadership Initiative to strengthen the country’s EV ecosystem. This initiative is open to any EV manufacturer, not just Tesla. Some key requirements for participation include:

1. Setting up a Head Office, Experience Centre and Service Centre.
2. Employing at least 80% local workforce.
3. Collaborating with at least 10 local higher education institutions or Technical and Vocational Education and Training (TVET).
4. Installing at least 50 ultra-fast chargers with a capacity exceeding 180 kWh.
5. Ensuring at least 30% of these chargers are accessible to the public, meaning they can be used by vehicles from other manufacturers.
6. Collaborating with at least 10 local companies to develop and deploy the EV charging ecosystem (e.g., local contractors for charger installations and sourcing equipment like transformers and cables).

Furthermore, the government is encouraging more industry players to take up this initiative, similar to Tesla, to benefit from the advantages provided by the Global BEV initiative.

What’s the Goal of This Initiative?

According to Tengku Zafrul, the Global BEV initiative aims to expand the charging network for local EV owners while boosting the participation of local companies in the EV charging space. He noted that countries like China, Hong Kong, and Norway have accelerated their transition to electric vehicles through similar programs, benefiting many local SMEs involved in the EV ecosystem.

In Malaysia, the government has set a goal of achieving 10,000 EV chargers by the end of 2025. However, this goal has encountered challenges, including bureaucratic hurdles, which have slowed the growth of EV chargers in 2024 compared to 2023.

Setting the Record Straight

Tengku Zafrul reiterated that the Malaysian government, through MITI or any of its agencies, has never announced that Tesla will be opening a factory in Malaysia.

Despite this, MITI remains committed to attracting high-quality investments to Malaysia. The strategy to attract investments in the automotive industry is not limited to Tesla alone.

From 2022 to the first quarter of 2024, Malaysia secured investments totaling RM24.55 billion in EV-related manufacturing activities from companies such as Chery, Gemilang Coachwork, Samsung SDI Energy, NexV Manufacturing, and EVE Energy.

MITI will continue its efforts to attract high-quality investments, create more job opportunities for Malaysians, and ensure that the country remains competitive on the global stage.