KUALA LUMPUR - Malaysia has issued a license to Starlink, the satellite communications service started by Mr Elon Musk, to provide Internet services in the country, particularly in remote areas, its communications minister said on Thursday.

Minister Fahmi Fadzil said in a Facebook post that Starlink, which is operated by Mr Musk’s SpaceX, would begin by providing its services to schools and higher education institutions.

The government was also prepared to work with satellite communications firms, including Starlink, to ensure 100 per cent Internet coverage in populated areas, Mr Fahmi said.

Around 3 per cent of populated areas in Malaysia face issues with Internet access, due to geographical and infrastructure challenges, he added.

The announcement comes a week after Malaysian Prime Minister Anwar Ibrahim held a call with Mr Musk to discuss his companies investing in Malaysia.

The government earlier this year announced that his electric vehicle (EV) maker Tesla would open an office in Malaysia. It also approved the company’s application to import battery-run EVs into the country, as part of a wider government effort to promote sustainable mobility.

Separately on Thursday, Tesla unveiled its sport utility electric vehicle - Model Y - at an event in Kuala Lumpur, with deliveries to Malaysia to begin next year.

The rear-wheel drive model has a starting price of RM199,000 (S$57,900), Tesla said in a statement.

“Malaysia has set a goal of building 10,000 charging stations by 2025, and Tesla is very much part of it,” said Ms Isabel Fan, the company’s regional director for Hong Kong and Macau.

Tesla has so far set up eight supercharging stations, stretching from Penang in the north to Johor in the south of the peninsula.

The starting price unveiled at the launch makes Malaysia the most affordable place to own Model Y’s base variant in the region.

The car is priced at 1,959,000 baht (S$76,160) in Thailand and S$87,990 in Singapore, according to Tesla’s official website. REUTERS