Cover image via @tzafrul_aziz (Instagram)
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The purchase of Boeing planes is not a waste of taxpayers' money, but rather a strategic investment that will help the country in many ways, said Tengku Datuk Seri Zafrul Abdul Aziz
In a five-minute video posted yesterday, 3 August, the Investment, Trade, and Industry Minister responded to several questions from netizens about the outcome of US-Malaysia tariff negotiations.
In particular, he commented on the purchase of 30 Boeing planes, which was one of the conditions of reducing the US tariff on Malaysian imports.
Below are the six questions he addressed:
1. Is buying Boeing planes a waste of money?
The minister used an analogy to justify the USD9.5 billion (about RM40 billion) purchase, comparing a person who buys a motorcycle and leaves it at home to a person who buys a motorcycle and uses it for work and part-time delivery services. The first case is wasteful, but the second is not.
Zafrul said Malaysia Aviation Group's (MAG) purchase of Boeing planes falls under the second category, as the planes will transport passengers and generate profit, not sit idle at a terminal.
2. Why buy new planes when we already have old ones?
The minister highlighted several reasons why new planes are necessary for MAG:
- To replace old planes: Old planes will eventually need to be replaced. Given that it can take a long time to acquire new panes — the earliest delivery for a new Boeing order would be in 2030 — MAG must plan ahead.
- To meet increasing demand: The number of passengers is increasing, and MAG needs more planes to keep up with the demand. In Malaysia, passenger numbers have grown significantly from 11 million in 2021 to an estimated 113 million in 2025.
- To avoid losing customers: MAG must have enough planes, otherwise, passengers will turn to other airlines. This will cause MAG to miss out on the opportunity to increase its profits.
Zafrul included an infographic showing the rise in flight passenger numbers over the past five years.
Image via @tzafrul_aziz (Instagram)3. Is government money being spent on these planes?
No, Zafrul clarified.
"It's not the government buying them. It's MAG — a commercial company. They've already done the math. If it wasn't profitable, they wouldn't proceed," he said.
4. What does this have to do with US tariffs?
The minister clarified that the purchase of Boeing planes is part of a larger strategy to address the trade surplus Malaysia has with the US.
Zafrul explained that when a country sells more goods to another country than it buys from them, it creates a trade surplus.
"We needed to show that we also buy from them. So, we compiled a list of planned purchases from multiple Malaysian companies, including semiconductors, liquified natural gas (LNG), and aircraft," he said.
The minister said MAG's planned purchase of Boeing planes was another item included in the list, which was shown to the US as part of negotiations to lower tariffs.
The list proved to the US that Malaysia is committed to buying a significant amount of US goods, which persuaded the US to lower the tariffs.
Zafrul showing an example of what Malaysian companies have committed to purchase from the US.
Image via @tzafrul_aziz (Instagram)5. Did MAG buy these planes just to get a better trade deal?
Zafrul reiterated that MAG had announced the purchase of 30 Boeing planes, with an option for 30 more, in March, before any tariffs were imposed.
He said this shows that MAG's decision to buy the planes was based on its own needs, not on the tariff issue.
Below is an X post published last Saturday, 2 August, in which Zafrul said MAG had announced its plan to buy Boeing planes even before US President Donald Trump imposed a high tariff on Malaysian goods:
Beli pesawat Boeing ni membazir duit cukai rakyat?
— Tengku Zafrul 🇲🇾 (@tzafrul_aziz) August 2, 2025
Pembelian pesawat ini sebenarnya adalah keputusan perniagaan strategik oleh Malaysia Aviation Group (MAG) dan dibiayai menggunakan dana syarikat, BUKAN duit cukai RAKYAT!
Rancangan pembelian ini telah diumumkan SEAWAL MAC 2025… pic.twitter.com/mSWfCoClDN
6. What are the other benefits of the Boeing purchase?
According to Zafrul, buying Boeing planes also has a positive impact on Malaysia's local aerospace industry.
He shared that Boeing Composites Malaysia (BCM) is the only fully owned Boeing factory in Southeast Asia. It manufactures critical components for Boeing planes and employs more than 1,000 Malaysian workers.
The increasing number of Boeing orders from countries like Japan, the UAE, Indonesia, Cambodia, Bangladesh, and Vietnam will require BCM to increase production.
This increase in demand is expected to boost Malaysia's aerospace exports and could lead to BCM expanding its factory and hiring more local employees.
Zafrul said that, in 2022, the country's aerospace sector generated RM25.1 billion in revenue, and that number is expected to grow even higher with the new Boeing orders.
