Kuala lumpur: Malaysia Aviation Group’s (MAG) recent decision to purchase Boeing aircraft has been characterized by Tengku Datuk Seri Zafrul Abdul Aziz as a strategic business move, countering allegations that it would squander taxpayers’ money. The purchase will be fully funded by the company’s own financial resources.

According to BERNAMA News Agency, the Investment, Trade and Industry Minister clarified that the decision to acquire the aircraft was announced in March, well before any new import tariffs by the United States were declared. This preemptive announcement came prior to US President Donald Trump’s tariff measures on goods.

Tengku Zafrul emphasized that the purchase is unrelated to the tariff negotiations, noting that the US imposed tariffs due to a trade deficit which led to higher tariffs of 25 percent. He highlighted that Malaysia’s strategy included listing significant purchases from the US, such as the Boeing aircraft order, to demonstrate its role as a substantial buyer of US products.

He asserted that the acquisition is not merely a tactic to reduce tariffs but part of a broader strategy to showcase Malaysia’s purchasing power. This approach effectively led to a reduction in US import tariffs on Malaysian goods from 25 percent to 19 percent, as a result of strategic negotiations ensuring mutual benefit for companies and the nation.

In an earlier announcement in March, Prime Minister Datuk Seri Anwar Ibrahim confirmed that MAG had committed to a firm order for 30 Boeing 737 aircraft, with delivery expected by 2030.