Tesla and Starlink granted full foreign ownership in Malaysia

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Malaysia has reportedly allowed Tesla and Starlink Internet Services Malaysia to operate in the country as fully foreign-owned entities. The decision was made after considering the benefits that the companies could bring to the nation.

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The Communications and Multimedia Act 1998 (Act 588) limits the foreign equity holding of Network Facilities Providers (NFP) (I) and Network Services Provider (NSP) (I) license holders to 49%, according to The Star.

However, an exemption was reportedly given to Starlink by the Communications and Digital Ministry through the Malaysian Communications and Multimedia Commission (MCMC). Under this exception, Starlink was permitted to provide satellite internet services to Malaysian users.

Prior to this, MCMC stated on 11 September that Starlink has been granted Malaysia Digital status, allowing it to operate in Malaysia with its current ownership status.

The decision to allow Tesla full foreign ownership was also part of the Malaysian government’s aim expand and diversify the manufacturing sector through existing and new companies, according to The Star.

A+M has reached out to MCMC and Tesla for more information.

On August 2023, the two Elon Musk-owned companies had discussions over their entry to Malaysia. Ministry of Investment, Trade and Industry (MITI) minister, Zafrul Aziz, said at the time that the move demonstrated Tesla’s confidence in Malaysia’s economic fundamentals and business environment.

He added that MITI would continue to profile Malaysia as “pro-trade, pro-industry and pro-investment", expressing commitment to improve the ease of doing business in the country.

While some industry players saw the move as a boost to the country’s self-esteem, some expressed wariness at the risks of negative public perception stemming from Musk’s unpredictable behaviour.

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