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 11 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

Six per cent growth proves Malaysia's economy remains resilient - PM

Malaysia

DAP must have an 'exit clause' if it opts to remain in government - Ramkarpal

Malaysia

Police looking for two women who allegedly stole gold bracelet (video)

Malaysia

BN’s relations with PN put further strains on PH - KJ

By Alfian Z.M. Tahir

Malaysia

MRT suddenly stops at Bukit Bintang and all went dark (video)

By Alfian Z.M. Tahir

Malaysia

Couple plead guilty over death of three-month-old baby in their care

Malaysia

PKR allows Nurul Izzah open-ended leave to pursue PhD, keeps door open for return

Malaysia

Mediation centres are a positive alternative in defamation cases

You may be interested

Business

Oil holds near US$81 per barrel as Hormuz standoff, softer demand outlook keeps markets on edge

Business

Malaysia’s economy surges 6.0% in Q2 2026 -DOSM