Commentary Pm Anwar Rattles Malaysia S Business Elite With His Wooing Of Tesla



Mr Anwar’s concessions to Tesla suggest that change is afoot, setting the stage for a confrontation between his government and a set of powerful politically well-connected business groups that have benefitted hugely from this system. 
(CNA) –  Prime Minister Anwar Ibrahim scored a big win in his drive to attract foreign investment last month when he managed to convince billionaire Elon Musk to choose Malaysia as the regional headquarters for electric vehicle (EV) carmaker Tesla. In doing so, Mr Anwar also delivered a less-than-subtle message to Malaysia’s entrenched business and political elite that their halcyon days are numbered.
Tesla’s move into Malaysia, which came on the back of strong competition from the Indonesian government, is nothing short of ground-breaking.  
Under the terms Mr Musk negotiated with the Anwar government, Tesla would not be required to meet local equity rules that stipulate that the country’s indigenous groups, which comprise the majority ethnic Malay community, must own a minimum 30 per cent interest in foreign ventures establishing businesses in Malaysia.
What is more, Tesla’s sales of its imported cars currently manufactured in its Shanghai facility would not be subject to the country’s opaque import licensing system called Approved Permit (AP), which covers the import of a range of items from rice to fireworks and vehicles.
The local equity rules and the import licensing regime have been at the heart of the Malaysian economy for decades. 
Read more here


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