Tesla’s decision to choose Malaysia over Indonesia as its operational base represents a significant opportunity for Malaysia to position itself at the forefront of the electric vehicle industry in Southeast Asia.
Likewise, Anwar’s acceptance of the Starlink satellite system from the Musk-owned SpaceX to provide prompt internet access to remote communities is a strong signal on two counts. The car industry is at an inflection point, switching from combustion engines to electric motors, from hardware to software and 5G connectivity, and it is at this moment that Anwar or whoever is in government must seize the opportunity to decarbonise the automotive industry and gain market share in Southeast Asia with the help of both new players including Tesla and China car players as well some of the car companies that are already invested in Malaysia.
Similarly, a veteran automotive captain in Malaysia cautions against undue haste, and calls for the transition from internal combustion engines to be done in a more structured manner. “The transition should be guided by the mission to decarbonise as fast as possible but in a practical manner. This means that the transition should include mild hybrids, hybrids, plug-in hybrid petrol/electric vehicles, EVs with range extenders and affordable EVs with a smaller battery but bigger range,” he said.
The government will also need to introduce new laws to encourage the electrification of transport, including providing EV owners with the “right to charge”. This means property developers will be required to supply EV charge points at public places and residential units.