Boeing aircraft acquisition part of MAG's long-term fleet renewal, capacity expansion plan - Tengku Zafrul


KUALA LUMPUR: The acquisition of Boeing aircraft by Malaysia Aviation Group (MAG) is part of a long-term, phased plan to renew and expand the fleet’s capacity, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

The minister emphasised that MAG’s purchase of Boeing aircraft was not a decision made abruptly or due to tariff pressures.

He said the decision was based on the need to replace the Boeing 737-800 planes, which have been in operation for an average of 14 years, to ensure the company’s operational safety and sustainability.

"In 2016, MAG placed an initial order for 25 Boeing 737-8 MAX aircraft. Since November 2023, 13 planes have been received, with the remainder to be delivered progressively until 2027.

"On March 20, 2025, MAG finalised an additional order for 30 Boeing 737 MAX aircraft, with deliveries expected to take place from 2025 to 2035,” he told the Dewan Rakyat today during the ministerial briefing on reciprocal trade negotiations with the United States.

Tengku Zafrul also mentioned that there are 30 more aircraft currently in the planning category, with decisions to be made based on MAG’s future growth strategies and plans.

"The value of this acquisition covers not only the aircraft price but also includes engine costs, training, maintenance, and long-term support,” he added.

Tengku Zafrul pointed out that Malaysia’s aerospace industry would benefit from this decision, with Boeing having long been a key partner in the sector, including through Boeing Composites Malaysia (BCM) in Kedah, which supports Boeing’s global supply chain and provides employment opportunities for local communities.

"Malaysian companies such as CTRM, UPECA, SME Aerospace, Plexus, and others are important suppliers of Boeing and Airbus components. Malaysia’s aerospace industry contributed RM25.1 billion in 2024 and supports 30,000 jobs nationwide.

"At the same time, the country’s tourism sector is showing a strong recovery, surpassing pre-pandemic levels. Boeing itself projects global passenger traffic growth of 4.7 per cent annually over the next 20 years,” he said.

Tengku Zafrul added that this investment in new aircraft enabled Malaysia to capitalise on the growth potential of both the tourism and aerospace industries. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
Tengku Zafrul , Boeing , MAG , Dewan Rakyat , aerospace , economy

Next In Business News

Bitcoin touches 12-week high as traders weigh progress on Iran
TAS Offshore’s MD passes away
Anuar Ahmad retires as PetDag chairman
Axteria appoints Zaini Jass as chairman
Hextar Capital secures RM155.3mil Melaka hospital project
KHPT proposes RM19.5mil acquisition, diversifies into metal stamping
Ringgit closes higher against US dollar on tech-led inflows, easing geopolitical risks
KIP REIT posts stronger 3Q earnings, proposes RM435mil Setapak Central acquisition
Steel Hawk secures three-year logistics management contract from PetGas
Padini says 21 bank accounts frozen amid MACC probe

Others Also Read