Malaysian Prime Minister Datuk Seri Anwar Ibrahim confirmed that Tesla and Starlink Internet Services Malaysia Sdn Bhd, both companies from Elon Musk, have been granted permission to operate in Malaysia as fully foreign-owned entities.
The decision was made in consideration of the potential benefits these companies could bring to the country, Anwar stated in a written parliamentary reply dated October 31, reports The Star.
Starlink Malaysia received Network Facilities Providers (NFP) (I) and Network Services Provider (NSP) (I) licenses on July 17, 2023, which will be valid for a decade. Under the Communications and Multimedia Act 1998 (Act 588), foreign equity holding in such licenses is usually capped at 49%.
However, the Communications and Multimedia Minister has the discretion to allow 100% foreign ownership based on recommendations from the Malaysian Communications and Multimedia Commission (MCMC). Starlink had applied for and received this exemption.
Tesla Sdn Bhd, the Malaysian subsidiary of the American electric vehicle manufacturer, commenced its operations in Malaysia on July 20. Anwar noted that this aligns with the government’s policy to permit 100% foreign ownership for new projects and expansions in the manufacturing sector.
The Prime Minister’s confirmation came in response to a query from Datuk Seri Hamzah Zainudin, who questioned the government’s rationale for not enforcing local equity holding requirements and granting exemptions to these companies.
Communications and Digital Minister Fahmi Fadzil announced on July 20 that Malaysia had issued a license to Starlink to provide local internet services, making it the 60th country to be served by the Musk-owned satellite network.