Malaysia says US tariff reduction not conditional on Boeing purchase

KUALA LUMPUR, Malaysia (MNTV) – The United States’ decision to reduce its tariff on Malaysian imports was not conditional on Malaysia Airlines purchasing 30 Boeing aircraft, says investment, trade and industry minister Zafrul Aziz. 

Malaysia Airlines’s decision to renew its fleet was based on commercial considerations and long-term operational needs, he was quoted as saying by Free Malaysia Today.

“It was not the result of coercion or pressure from any external party. In fact, the initial order for 25 B737 MAX units was made back in 2016,” he said. 

Zafrul was responding to Senator Mujahid Yusof, who asked if there had been pressure on Malaysia Airlines to purchase 30 Boeing commercial aircraft for the country to secure the US tariff reduction from 25% to 19%.

Zafrul said the additional 30 B737 MAX units ordered in March were part of a phased fleet renewal strategy to replace aircraft that were already averaging 14 years old.

“This move is important, especially to ensure that Malaysia Airlines maintains its safety standards, and 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,” he said.

Zafrul added that Malaysia was now part of Boeing’s global supply chain via Boeing Composites in Kedah, which is Boeing’s first wholly-owned manufacturing facility in Southeast Asia.