The investment, trade and industry ministry says the US’s decision to reduce its tariff on Malaysian imports was not conditional on Malaysia Airlines (MAS) purchasing 30 Boeing aircraft.
In a written reply on the Parliament website, the ministry said MAS’s decision to renew its fleet was based on commercial considerations and long-term operational needs.
“It was not the result of coercion or pressure from any external party.
“In fact, the initial order for 25 B737 MAX units was made back in 2016, well before the recent tariff negotiations.”
The ministry was responding to Senator Mujahid Yusof, who asked if there had been pressure on MAS to purchase 30 Boeing commercial aircraft for the country to secure the US tariff reduction from 25% to 19%.
The ministry said the additional 30 B737 MAX units ordered in March were part of a phased fleet renewal strategy to replace aircraft that were already averaging 14 years old.
“This move is important, especially to ensure that MAS maintains its safety standards, and improves fuel efficiency and market viability in the face of intense global airline competition.
“In terms of domestic economic spillover benefits, the decision to procure Boeing aircraft also indirectly strengthens the national aerospace ecosystem,” it said.
The ministry added that Malaysia was now part of Boeing’s global supply chain via Boeing Composites in Kedah, which is Boeing’s first wholly-owned manufacturing facility in Southeast Asia.
The ministry said the aerospace industry’s RM25.1 billion investment contribution to Malaysia in 2024 had created about 30,000 high-quality jobs.
It also said Boeing had projected a 4.7% annual rise in global passenger traffic over the next 20 years.
“Therefore, the procurement of these commercial aircraft will enable Malaysia to leverage the tourism industry’s growth potential.
“In short, it is a commercial decision based on business and economic factors.”
