Kuala lumpur: The Investment, Trade and Industry Ministry (MITI) has clarified that the recent reduction of United States (US) tariffs from 25 percent to 19 percent is not contingent upon Malaysia Airlines (MAS) purchasing 30 Boeing aircraft.
According to BERNAMA News Agency, MITI emphasized in a written statement on the Parliament website that MAS’ decision to renew its fleet was driven by commercial considerations and long-term operational requirements. The ministry stated, “It was not the result of any coercion or pressure from any external party.” The initial order for 25 B737 MAX units was placed in 2016, well before the recent tariff discussions.
MITI further explained that the additional 30 B737 MAX units planned for March 2025 are part of a phased strategy to replace aging aircraft, which currently average 14 years old. This renewal is crucial for maintaining safety standards, enhancing fuel efficiency, and ensuring market competitiveness amid stiff global airline competition.
The ministry also highlighted the domestic economic benefits of procuring Boeing aircraft, which indirectly bolsters the national aerospace ecosystem. Malaysia has integrated into Boeing’s global supply chain through Boeing Composites, its first wholly owned subsidiary, located in Kedah. MITI noted the aerospace industry’s significant investment contribution of RM25.1 billion in 2024, which has generated approximately 30,000 high-quality jobs.
Moreover, Boeing’s projection of a 4.7 percent annual increase in global passenger traffic over the next two decades aligns with Malaysia’s commercial aircraft investment strategy, allowing the country to capitalize on tourism growth potential. MITI concluded, “In short, it is a commercial decision based on business and economic factors.”