Boeing purchase is part of long-term fleet renewal, says Zafrul

The Star

3 days ago

KUALA LUMPUR: The government has dismissed claims that Malaysia Airlines' acquisition of Boeing aircraft was due to US pressure, emphasising that the deal is part of a long-term plan to renew and expand the national carrier's fleet.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia Aviation Group's (MAG) aircraft purchase is valued at US$19bil and aims to replace ageing B737-800 planes that have been in operation for an average of 14 years.
"The procurement of Boeing aircraft by MAG is part of a long-term, phased plan to renew and expand fleet capacity.
"The purchase was not a sudden decision or a result of tariff-related pressure but based on operational requirements to ensure the safety and sustainability of MAG's operations," he said in the Dewan Rakyat on Monday (Aug 4).
Tengku Zafrul explained that MAG initially ordered 25 Boeing 737-8 MAX aircraft in 2016, of which 13 have been delivered as of November 2, 2023, with the rest to be delivered in stages until 2027.
"On March 20, before any tariff-related developments, MAG finalised an additional order for 30 Boeing 737 MAX aircraft, with deliveries expected from 2025 through to 2035.
"Another 30 aircraft remain under consideration, subject to MAG's future growth strategy," he added.
He said the procurement value includes not only the aircraft but also engine costs, training, maintenance, and long-term support services.
The minister also spoke of the broader economic benefits of the deal, stating it would bolster Malaysia's aerospace and tourism sectors.
"Malaysia's aerospace industry stands to benefit significantly, as Boeing has long been a key partner in this sector, including through Boeing Composite Malaysia in Kedah, which supports Boeing's global supply chain and provides local employment," said Tengku Zafrul.
He added that many Malaysian companies supply critical components to both Boeing and Airbus, contributing RM25.1bil annually and supporting 30,000 jobs nationwide.
"At the same time, our tourism sector has shown strong post-pandemic recovery. Boeing forecasts global passenger traffic to grow by 4.7% over the next 20 years.
"This investment enables Malaysia to tap into the growth potential of both tourism and aerospace industries," he said.
Tengku Zafrul also addressed concerns raised by several MPs about possible concessions to the US, reiterating that Malaysia remains committed to safeguarding national interests.
"I wish to stress again that the government holds firmly to the principle of no compromise on strategic national policies.
"This includes empowerment of local vendors and Bumiputera companies, SME participation in supply chains, protection of critical sectors, and conditions on halal imports and the automotive market," he said.
He added that the trade negotiations with the US provided Malaysia with a timely opportunity to review outdated and overlapping non-tariff barriers and bureaucratic procedures.