KUALA LUMPUR: Elon Musk linked companies Tesla and Starlink Internet Services Malaysia Sdn Bhd were granted permission to operate in Malaysia as 100% foreign-owned companies due to the potential benefits they could bring to the nation, according to Datuk Seri Anwar Ibrahim (pic).
“The waiver was given to Starlink by the Communications and Digital Ministry through the Malaysian Communications and Multimedia Commission(MCMC) to offer satellite internet services to Malaysian users,” stated Prime Minister Anwar in a written parliamentary response dated Oct 31.
Starlink Malaysia acquired the Network Facilities Providers (NFP) (I) and Network Services Provider (NSP) (I) licenses on July 17, 2023, which will remain valid for a period of 10 years.
Anwar explained that under the Communications and Multimedia Act 1998 (Act 588), foreign equity holding for the NFP(I) and NSP(I) license holders is limited to 49%. This restriction serves as a special condition for the licenses.
However, Anwar added that the Communications and Multimedia Minister has the authority to permit license holders to hold 100% foreign equity based on recommendations and assessments by MCMC. “Starlink had applied for this exemption,” he further noted.
In the case of Tesla, Anwar stated that this decision aligns with the government’s choice to allow 100% foreign ownership for new projects, expansions, and diversification in the manufacturing sector by both existing and new companies.
Tesla Sdn Bhd (Tesla), the Malaysian subsidiary of the renowned American electric vehicle (EV) manufacturer Tesla Inc, officially commenced operations in Malaysia on July 20.
Anwar provided this response in reference to a query by Datuk Seri Hamzah Zainudin (PN-Larut), who asked the government to justify why the requirement for local equity holding was not enforced and why these two companies were granted exemptions, highlighting what seems to be a “liberal” approach.
In an announcement on July 20, Communications and Digital Minister Fahmi Fadzil revealed that Malaysia issued the license to enable Starlink to provide local internet services.
This places Malaysia as the 60th country to be covered by the satellite constellation owned by Musk.
