Kuala lumpur: The acquisition of Boeing aircraft by Malaysia Aviation Group (MAG) is part of a long-term, phased plan to renew and expand the fleet’s capacity, stated Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz. The minister clarified that MAG’s purchase decision was carefully considered, emphasizing it was not due to tariff pressures but rather the necessity to replace the aging Boeing 737-800 planes, which have been in operation for an average of 14 years to ensure operational safety and sustainability.
According to BERNAMA News Agency, MAG placed an initial order for 25 Boeing 737-8 MAX aircraft in 2016. Since November 2023, 13 planes have been delivered, with the remaining aircraft to be progressively delivered until 2027. Further, on March 20, 2025, MAG finalized an additional order for 30 Boeing 737 MAX aircraft, with deliveries scheduled from 2025 to 2035. Tengku Zafrul informed the Dewan Rakyat during a ministerial briefing on reciprocal trade negotiations with the United States.
Tengku Zafrul also noted that there are 30 more aircraft currently categorized for planning, with decisions pending based on MAG’s future growth strategies. The acquisition’s value encompasses not just the aircraft price but also engine costs, training, maintenance, and long-term support.
He highlighted that Malaysia’s aerospace industry stands to gain from this strategic move, with Boeing being a key partner in the sector. Boeing Composites Malaysia (BCM) in Kedah plays a vital role in supporting Boeing’s global supply chain, offering employment opportunities to local communities. Malaysian companies like CTRM, UPECA, SME Aerospace, and Plexus are crucial suppliers of Boeing and Airbus components. The aerospace industry contributed RM25.1 billion in 2024 and supports 30,000 jobs across Malaysia.
Additionally, Malaysia’s tourism sector is experiencing a robust recovery, surpassing pre-pandemic levels. Boeing projects a global passenger traffic growth of 4.7 percent annually over the next 20 years, presenting significant growth potential for Malaysia’s tourism and aerospace industries. Tengku Zafrul emphasized that the investment in new aircraft positions Malaysia to leverage these growth opportunities effectively.