Malaysia's trade minister: commitments include Malaysia Aviation Group to purchase Boeing aircraft worth $19B

Malaysia's trade minister: commitments include Malaysia Aviation Group to purchase Boeing aircraft worth $19B

KUALA LUMPUR, July 2, 2025 — Malaysia's Investment, Trade, and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz, has reaffirmed the country's commitment to purchase a total of 26 Boeing aircraft in a deal estimated to be worth nearly $19 billion. This significant investment is part of ongoing commercial agreements between Malaysia and the United States, and was reinforced during recent trade negotiations [2].

The Boeing aircraft purchase, valued at approximately $9.5 billion per phase, will be carried out in two phases, with each phase involving 13 aircraft. The first phase is scheduled to be completed in the near future, while the second phase is expected to follow shortly thereafter [2].

Minister Zafrul emphasized that the purchase is not solely aimed at reducing tariffs but rather as part of a broader strategy to deepen bilateral trade and aerospace cooperation with the United States. The deal is also expected to create downstream benefits for Malaysia’s aviation sector, including opportunities in maintenance, repair, and overhaul (MRO) services [1].

The initial order for 30 Boeing 737 aircraft was announced by Prime Minister Datuk Seri Anwar Ibrahim in March 2025, with the first aircraft scheduled for delivery by 2030 [1]. This strategic move was made prior to the announcement of any new import tariffs by the United States, demonstrating Malaysia's proactive approach to trade negotiations.

The minister's statement underscores Malaysia's commitment to strategic investments that align with its long-term economic goals. The Boeing aircraft purchase is expected to bolster Malaysia's aviation industry and contribute to the country's economic growth.

References:
[1] https://www.malaymail.com/news/malaysia/2025/08/03/tengku-zafrul-boeing-jet-deal-a-strategic-move-not-a-waste-of-public-funds/186260
[2] https://caliber.az/en/post/malaysia-reaffirms-19-billion-boeing-aircraft-deal-with-us-in-two-phases