PM Anwar Reveals Reasons for Tesla Establishing Office in Malaysia

Dream - The news of the establishment of Tesla's headquarters in Malaysia has been officially announced by the local Prime Minister, Anwar Ibrahim. This decision was made when Tesla CEO Elon Musk contacted him via video message, and he even plans to open his office this year.

"Through a video message, he stated that this year, Tesla will open its headquarters in Cyberjaya, Selangor," said Anwar as quoted from Channel News Asia.

Photo: Shutterstock

Previously, the Malaysian government tried to contact Musk, but was ignored. Anwar suspects that this is due to the unstable political situation in Malaysia.

"Elon Musk is the richest person in the world. Elon Musk is richer than a country. It is quite difficult to bring him in. But once our country is stable, I didn't ask to speak to him, he asked to speak to me," said Anwar.

The political situation in Malaysia has been unstable and fragile in the past 4 years, but Anwar is trying to restore the situation. The country has managed to pave the way for major investors like Musk.

"When the government is united, there is economic stability. When the political climate is stable, people will definitely come," he said at the opening of the Federal Development Carnival (FELDA).

Musk's plan has been well received and confirmed by the Malaysian Ministry of Trade and will create massive job opportunities.

Regarding Tesla's Plan to Build a Factory in Indonesia, This is What Elon Musk and Luhut Pandjaitan Said

Dream - CEO of Tesla, Elon Musk, responded to the news of the construction of a factory in Indonesia. Bloomberg reported that Tesla will soon sign a contract to build a factory in Indonesia with a capacity of 1 million units.

This report caught Elon Musk's attention because Bloomberg did not mention the name of the source or the unnamed source.

"Please be cautious about writing articles citing 'unnamed sources', as they are frequently false. (Please be cautious about writing articles citing 'unnamed sources', as they are frequently false)," wrote Elon Musk through his personal Twitter account @elonmusk.

Meanwhile, Reuters reported that negotiations between the Indonesian government and Tesla are still ongoing. Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, who leads the discussions with Tesla, refused to disclose further details, citing a non-disclosure agreement.

Bloomberg also reported that the Tesla-Indonesia discussions include plans for production facilities for the company's supply chain, citing sources familiar with the matter.

"I can't comment, we are still talking," said Luhut, adding that he had just had another discussion with Tesla. Meanwhile, Tesla did not respond to requests for comment.

Reuters wrote that Indonesia, the fourth most populous country in the world, has long been wooing US companies to build electric vehicle (EV) battery production and electric vehicles.

President Joko Widodo met with Musk to discuss potential deals last year.

Indonesia's nickel ore can be processed for use in EV batteries. Indonesia wants to develop downstream industries by utilizing its rich nickel reserves, after banning ore exports since 2020.

Tesla currently manufactures its electric vehicles in Shanghai, China, Berlin, Germany, and Austin and Fremont in the United States.

Meanwhile, Indonesia has succeeded in attracting the interest of other car manufacturers to invest in electric vehicle production.

Hyundai Motor Co (005380.KS) and SGMW Motor Indonesia, a part of joint venture SAIC Motor Corp Ltd (600104.SS), General Motors Co (GM.N), and Wuling Motors Holdings (0305.HK) have built assembly facilities in Southeast Asia.

Indonesian authorities said Japanese companies Toyota Motor Corp (7203.T) and Mitsubishi Motors Corp (7211.T) have promised to invest in EV production.

Companies that have invested or expressed interest in investing in EV battery manufacturing include South Korea's LG Energy Solution (373220.KS), China's Contemporary Amperex Technology (300750.SZ), Taiwan's Foxconn (2317.TW), and Germany's BASF, according to data from the Indonesian Investment Ministry.