US-M'sia deal: MAS, Petronas, Telekom, TNB to buy American goods

Putrajaya has committed to having government-linked companies (GLCs) make considerable purchases from the United States, under a new trade deal signed by Prime Minister Anwar Ibrahim and US President Donald Trump.

Many of these commitments were part of the preconditions the US previously set to lower reciprocal tariffs on Malaysia from 25 percent to 19 percent.

Annex IV of the deal stated that Malaysia Aviation Group - the parent company of Malaysia Airlines (MAS) - will purchase 30 Boeing planes, with the option of buying an additional 30 aircraft.

Previously, the government said that MAS' fleet renewal decision was based on commercial considerations and long-term operational needs - and that the lower reciprocal tariffs were not contingent on this purchase.

LNG deal

Under today's deal, Petronas will purchase three million tonnes per year of US liquefied natural gas (LNG), valued at around US$2.04 billion (RM8.6 billion).

The deal also highlighted the potential purchase of an additional two million tonnes per year, valued at US$1.36 billion.

This came as the government expects Petronas' income next year to decline in tandem with lower crude oil prices.

Under Budget 2026, the expected dividend from Petronas next year was slashed by RM12 billion to RM20 billion, compared to RM32 billion this year.

READ MORE: No SST on US fruits, reciprocal tariffs exemptions secured in new deal

Separately, Tenaga Nasional Berhad will commit to an active two-year coal purchase contract with a US supplier, with an estimated value of US$42.3 million.

Telekom Malaysia will also commit to purchasing US products and services with an estimated value of US$119 million.

In addition to this, Malaysian multinational companies will make the following procurements over the next five years:

• US$103 billion worth of semiconductors

• US$3.5 billion of aerospace equipment and machinery

• US$43.5 billion of data centre machinery and equipment

The full annexes and appendix of the trade deal are attached below.

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