MALAYSIA Aviation Group’s (MAG) recent purchase of Boeing aircraft is a strategic business decision and not a misuse of public funds, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
In a statement posted on his official X account today, Tengku Zafrul clarified that the order had been planned in advance and would be fully financed using MAG’s own funds, countering allegations from certain quarters that public money was involved.
“The purchase decision had been announced as early as March this year, prior to United States President Donald Trump’s announcement of any new import tariff on goods,” he said.
“So what does this purchase have to do with tariff negotiations?”
Tengku Zafrul explained that the US had imposed higher tariffs in part to address its trade deficit, noting that the country bought more goods from Malaysia than it sold.
“This means we sold more goods to the US than we bought from the country, so the US sought to reduce this deficit by imposing high tariffs of 25 per cent.”
He said Malaysia had responded by compiling a list of planned major acquisitions by Malaysian companies from the US, including MAG’s Boeing aircraft order.
“We are not making the purchase just to reduce tariffs,” he said.
Rather, the move demonstrated that Malaysia is a significant buyer of US products, contributing to the US government’s decision to reduce tariffs on Malaysian goods from 25 per cent to 19 per cent.
“This smart strategy is the result of careful negotiations, ensuring that the interests of both companies and the country are protected,” he added. - August 3, 2025
In March, Prime Minister Datuk Seri Anwar Ibrahim announced that MAG had placed a firm order for 30 Boeing 737 aircraft, with deliveries scheduled through to 2030. - August 3, 2025
