PM Anwar: Malaysia ready to supply EV batteries to Tesla; Indonesia should not be viewed as competitor

Recent reports indicate that Tesla is gearing up to make significant inroads in Southeast Asia, with plans to invest in both Malaysia and Indonesia, leading to speculations regarding the potential establishment of EV-related facilities in both countries.

Prime Minister Datuk Seri Anwar Ibrahim shed light on these developments in an exclusive interview with CNBC's Martin Soong during "The CNBC Conversation."

Prime Minister Anwar Ibrahim emphasised Malaysia's existing battery production capabilities, underlining that the country can offer Tesla a competitive edge by producing cost-efficient batteries locally.

He noted, "The understanding is, of course, to buy our batteries. It is cheaper and produced locally, and [offers an] advantage."

The allure of locally manufactured batteries lies in the prospect of reducing logistical complexities and costs associated with global battery sourcing. Anwar questioned the necessity of importing batteries from afar when Malaysia can cater to Tesla's needs.

While discussions have revolved around potential battery manufacturing, Anwar stressed that other opportunities within the supply chain also exist.

During the interview, the question of whether Malaysia envisions itself as an assembly hub for Tesla vehicles arose. Anwar indicated that while this aspiration is not off the table, it remains premature. 

He affirmed Malaysia's readiness to contribute significantly by manufacturing essential battery components. "What is important is we do have the capacity to produce parts or batteries required in the cars," he affirmed.

The discussions with Anwar unveiled a broader perspective on the EV industry's growth in the region. Anwar highlighted the collaboration between Malaysia and Indonesia as a key driver for success.

He emphasised the shared traits between the two nations and advocated for a spirit of complementarity rather than competition. "Instead of being in fierce competition, we should be able to complement each other," Anwar noted.

Also read: Indonesia says Tesla's investment in battery materials production imminent