Business

No U.S. pressure on Malaysia airlines over Boeing order, says MITI

The government clarifies that Malaysia Airlines’ decision to purchase 30 Boeing aircraft was driven by commercial needs and not linked to US tariff negotiations.

Updated 9 months ago · Published on 26 Aug 2025 4:16PM

No U.S. pressure on Malaysia airlines over Boeing order, says MITI
Initial order for 25 Boeing 737 MAX aircraft was made as early as 2016, well before the recent tariff negotiations with the U.S. government - August 26, 2025

THE Ministry of Investment, Trade and Industry (MITI) has firmly denied any suggestion that Malaysia Airlines (MAS) was pressured into purchasing 30 Boeing aircraft as a condition for securing reduced import tariffs from the United States.

In a written reply published on the Parliament website on Tuesday, MITI clarified that the airline’s decision to renew its fleet was based entirely on commercial and long-term operational considerations.

"It was not the result of pressure or coercion from any external party,” the ministry said.

MITI noted that the initial order for 25 Boeing 737 MAX aircraft was made as early as 2016, well before the recent tariff negotiations with the U.S. government.

The ministry was responding to a question from Senator Datuk Seri Dr Mujahid Yusof, who asked whether MAS faced any pressure to make the aircraft purchase in exchange for the reduction of US tariffs from 25 percent to 19 percent.

MITI further explained that the March 2025 addition of another 30 Boeing 737 MAX aircraft is part of a phased fleet renewal strategy aimed at replacing ageing aircraft, which currently have an average lifespan of 14 years.

"This step is essential to ensure MAS maintains safety standards, enhances fuel efficiency and remains competitive in an increasingly challenging global aviation market," it said.

On the domestic economic front, MITI added that the aircraft acquisition is expected to indirectly strengthen Malaysia’s aerospace ecosystem. Malaysia is already part of Boeing’s global supply chain through Boeing Composites in Kedah.

According to MITI, the local aerospace industry attracted RM25.1 billion in investments in 2024, generating around 30,000 high-quality jobs.

Boeing, for its part, projects a 4.7 percent annual increase in global passenger traffic over the next two decades.

"Investment in or procurement of commercial aircraft will allow Malaysia to benefit from the growth potential of the tourism industry. It is a commercial decision grounded in sound business and economic factors," MITI said. - August 26, 2025

Spotlight

Malaysia

Bersatu-PH tie-up a possibility as coalition seeks Malay support, analyst says

By Alfian Z.M. Tahir

Malaysia

Woman molested on her way home from work (video)

Malaysia

Court allows Daim's daughter to permanently keep passport

Malaysia

Santiago pokes holes in data centre hype, asks: Who really benefits?

By Alfian Z.M. Tahir

Malaysia

Jeweller vows to pursue Rosmah until ‘every penny’ is recovered as RM67.5m battle enters enforcement phase

Malaysia

Ambulance carrying two injured men crashes en route to hospital after MPV collision in Besut

Malaysia

Man blames 'lack of love' for sexual assault on teens

Business

BNM's OPR to stay at 2.75 pcent in 2026 amid strong domestic demand - Kenanga IB

Malaysia

Missing jewellery: Rosmah ordered to pay RM67.5 million

You may be interested

Business

AI should support human thinking, not replace it - MDEC CEO

Business

Unemployment rate rises to 3.0 per cent in April 2026 - DOSM

Business

Kami Builders secure RM300 million ASEAN sustainability sukuk, channels Islamic capital into QIU campus development

Business

BNM's OPR to stay at 2.75 pcent in 2026 amid strong domestic demand - Kenanga IB

Business

Ringgit holds firm despite US inflation shock as markets brace for Federal Reserve decision

Business

Ringgit surges as Iran deal optimism weighs on US dollar and oil prices

Business

Open fibre sues Bank Pembangunan, six others in RM2b claim over Aries telecoms liquidation