Boeing purchase a corporate decision, not funded by taxpayers - Zafrul

Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz reiterated that the recent acquisition of Boeing aircraft by Malaysia Aviation Group (MAG) was a corporate move funded by the company’s own coffers, not public funds.

Responding to questions raised over Malaysia's perceived compromise in tariff negotiations with the US, Zafrul said, "The purchase of the aircraft was a strategic business decision by MAG and was financed using company funds and not the people’s tax money."

MAG had previously announced the acquisition of 30 new planes directly from Boeing as part of its aircraft modernisation strategy.

The order includes 18 Boeing 737-8s and 12 Boeing 737-10s, powered by CFM LEAP-1B engines with an option for 30 more 737s.

In a post on X, Zafrul pointed out that MAG’s plans to purchase the aircraft were made public as early as March this year, well before US President Donald Trump announced higher tariffs on Malaysian goods.

He said Malaysia’s emphasis on high-value corporate purchases from the US – including the Boeing deal – had helped shape the country’s negotiations on tariffs.

“These purchases helped demonstrate that Malaysia is also a significant buyer of US products, not merely an exporter. We are not buying just because we want to reduce tariffs,” he added.

“This approach showed the US that we were also a big buyer of their products, and ultimately convinced them to lower our export tariffs from 25 percent to 19 percent.”

Zafrul also described the outcome as a result of “careful consultation” that safeguarded both national and corporate interests.

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