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

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