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Tesla is the first manufacturer to sell in Malaysia under the country’s Battery Electric Vehicles Global Leaders scheme, which provides special concessions to EV manufacturers.

Normally, foreign-made cars can only be sold through a local partner, and sellers must comply with Malaysia’s affirmative action policies towards the so-called bumiputera, members of the Malay majority and indigenous groups.

But Tesla, under Malaysia’s scheme, can sell directly to consumers without a local partner.

The deal “is as good as putting 30% equity,” Anwar said on CNBC, referring to Malaysia’s rule that demands foreign ventures have at least 30% bumiputra ownership.

“In fact, in terms of real advantage returns to the economy–that is better,” he continued.

Tesla is not the only Musk-led outfit to get an exemption.

Malaysia has also granted SpaceX the right to operate its Starlink system in the country while being wholly foreign-owned, despite rules saying that internet providers could have a maximum of 49% foreign ownership.

Anwar noted that Malaysia has offered some sectors, like IT, similar exemptions in the past. “It’s not just Elon Musk,” he said.

Malaysia has implemented an affirmative action policy towards the Malays since the early Seventies, following deadly riots between the majority and the Chinese minority

Malays now benefit from preferential access to employment, university admission, and other services.

Yet the policy has been attacked for enriching a smaller population of wealthier Malays rather than the population as a whole.

Anwar echoed these criticisms in his interview with CNBC, saying that previous regimes used the policies to “enrich their children and their families.” Instead, Anwar said he wanted to shift the policy to “create new entrepreneurs.”