US tariff reduction not conditional on MAS buying 30 Boeing aircraft - ministry

The Investment, Trade and Industry Ministry has reiterated that the United States tariff reduction to 19 percent from 25 percent was not conditional on Malaysia Airlines (MAS) purchasing 30 Boeing aircraft.

In a written reply on the Parliament website on Tuesday, the ministry explained that MAS' fleet renewal decision was based on commercial considerations and long-term operational needs.

“It was not the result of any coercion or pressure from any external party.

“In fact, the initial order for 25 B737 MAX units was made back in 2016, well before the recent tariff negotiations,” the ministry said in response to Senator Mujahid Yusof Rawa, who asked if there was pressure on MAS to purchase 30 Boeing commercial aircraft for the country to secure the US tariff reduction.

The ministry said the additional 30 B737 MAX units in March 2025 are part of a phased fleet renewal strategy to replace aircraft that are already averaging 14 years old.

“This move is important, especially to ensure that MAS maintains its safety standards, improves fuel efficiency and market viability in the face of intense global airline competition.

“In terms of domestic economic spillover benefits, the decision to procure Boeing aircraft also indirectly strengthens the national aerospace ecosystem, and Malaysia has already become part of Boeing’s global supply chain via Boeing Composites (Boeing's first wholly owned subsidiary) in Kedah,” it added.

The ministry further said the aerospace industry’s RM25.1 billion investment contribution in Malaysia in 2024 has created about 30,000 high-quality jobs.

It added that Boeing has projected a 4.7 percent annual rise in global passenger traffic over the next 20 years.

“Therefore, this commercial aircraft investment or procurement will also enable Malaysia to leverage the tourism industry’s growth potential.

“In short, it is a commercial decision based on business and economic factors,” the ministry said.

- Bernama

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