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Boeing deal not driven by US tariffs: Zafrul

Minister says MAG’s aircraft purchases are part of a long-term fleet renewal plan, dismisses claims of pressure from Washington

2:12 PM MYT

 

KUALA LUMPUR — Malaysia’s recent aircraft purchases from Boeing are part of a long-term strategy to renew and expand the national carrier’s fleet, rather than a reaction to tariff pressures from the United States, the government has clarified.

Speaking in Parliament today, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said Malaysia Aviation Group’s (MAG) acquisition of Boeing 737 MAX jets aligns with plans to replace ageing aircraft and ensure safe, efficient operations.

“This was not a hasty decision nor one made under pressure. MAG’s Boeing aircraft acquisition is part of a phased, forward-looking fleet renewal plan,” Tengku Zafrul said during a ministerial briefing on reciprocal trade negotiations with the United States.

He noted that MAG had placed an initial order for 25 Boeing 737-8 MAX aircraft in 2016, of which 13 have been delivered since November 2023. The remaining jets are expected to arrive progressively through to 2027.

On March 20 2025, MAG finalised an additional order for 30 more Boeing 737 MAX planes, with deliveries scheduled between 2025 and 2035. A further 30 aircraft are currently under planning and will depend on MAG’s future growth strategy.

Tengku Zafrul said the total investment goes beyond just the cost of the aircraft, covering engines, training, maintenance and long-term support.

The minister also highlighted that Malaysia’s aerospace industry stands to benefit from the deal, with Boeing maintaining long-standing partnerships in the country.

“Boeing Composites Malaysia (BCM) in Kedah supports Boeing’s global supply chain and provides job opportunities for Malaysians,” he said.

Other local firms such as CTRM, UPECA, SME Aerospace and Plexus are also key component suppliers to both Boeing and Airbus. Malaysia’s aerospace industry contributed RM25.1 billion to the economy in 2024 and supports 30,000 jobs nationwide.

Tengku Zafrul added that the aviation sector’s outlook remains positive, with Boeing forecasting global passenger traffic growth at 4.7% annually over the next two decades.

“Malaysia’s tourism sector has already rebounded beyond pre-pandemic levels. This investment positions us to tap into long-term growth in both tourism and aerospace,” he said. — August 4, 2025

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