1-11-2023 (KUALA LUMPUR) In a strategic move aimed at harnessing the potential benefits for the nation, Malaysia has granted permission for companies linked to Elon Musk, Tesla and Starlink Internet Services Malaysia Sdn Bhd, to operate as 100% foreign-owned entities within the country, according to Datuk Seri Anwar Ibrahim.
The Malaysian Prime Minister disclosed in a written parliamentary reply dated October 31 that the exemption allowing this unique foreign ownership status was provided to Starlink by the Communications and Digital Ministry in collaboration with the Malaysian Communications and Multimedia Commission (MCMC). The objective of this exemption is to enable Starlink to offer satellite internet services to the Malaysian populace.
Starlink Malaysia secured the Network Facilities Providers (NFP) (I) and Network Services Provider (NSP) (I) licenses on July 17, 2023, and these licenses will remain in effect for a ten-year period. Anwar Ibrahim further explained that, under the Communications and Multimedia Act 1998 (Act 588), the foreign equity holding of NFP(I) and NSP(I) license holders is typically capped at 49%. However, this regulation can be flexibly adjusted under special conditions by the Communications and Multimedia Minister based on recommendations and evaluations from the MCMC. In this instance, Starlink applied for and was granted this exemption to operate as a 100% foreign-owned entity.
As for Tesla, the decision to allow 100% foreign ownership is in line with the Malaysian government’s broader policy to promote foreign investment and participation in new projects, project expansions, and diversification within the manufacturing sector, whether initiated by existing or new companies. Tesla Sdn Bhd, the Malaysian subsidiary of the renowned American electric vehicle (EV) manufacturer, Tesla Inc., commenced its operations in Malaysia on July 20.
This stance was made in response to a query from Datuk Seri Hamzah Zainudin, who inquired about the rationale behind not enforcing local equity requirements and why these two companies were granted exemptions, describing the approach as “liberal.”
In an announcement made on July 20, Communications and Digital Minister Fahmi Fadzil confirmed that Malaysia had issued the necessary licenses to enable Starlink to provide internet services within the country, marking Malaysia as the 60th nation to be included in the network served by the Musk-owned satellite constellation. This development reflects a broader strategy of encouraging foreign investment and innovation in Malaysia’s evolving technological landscape.
