KUALA LUMPUR, Aug 21 — Indonesia is an important neighbour to Malaysia, therefore both countries should be able to complement each other, said Prime Minister Datuk Seri Anwar Ibrahim.

He said both countries have a lot in common and are working very well together in the government and private sectors.

"I think instead of being in a fierce competition, we should be able to complement each other, and that has been the ‘spirit’ of my conversation with Indonesia’s President Joko Widodo and followed through by the industries,” he said during an exclusive interview with The CNBC Conversation aired today.

Anchor Martin Soong asked Anwar whether Malaysia would compete with Indonesia to build its supply chain for batteries, from mining to assembly, amid Tesla’s investment interest.

The prime minister said Malaysia has produced its own batteries and is able to offer an advantage for the electric vehicle (EV) maker.

"The understanding is, of course, to buy our batteries. They are cheaper and are produced locally, and (are at an) advantage, that is what they said. Why should they bring batteries from all over the world?

"What is important is we do have the capacity to produce parts or batteries required in the cars,” Anwar said.

Meanwhile, Anwar said it is not something new for foreign investors to hold 100 per cent equity shareholdings in Malaysia.

"There have been exceptions given for the digital transformation, or information technology (IT) related activities or investments... we have done that in the past, (but) are very selective,” he said when asked if Tesla were to sell its EVs in the country without the approved permit (AP) is a one-off ‘no-licencing restrictions’ move or a sign moving forward that allows others to follow suit.

"So the issue is not just Elon Musk. I think it is much required in this country to give confidence and the participation of our players who are interested in SpaceX, where three Malaysian companies (are) involved,” he said, without elaborating further. — Bernama