Talks held with China, Brazil before move to buy Boeing aircraft, Dewan told

New Straits Times

14 hours ago

KUALA LUMPUR: Malaysia held discussions with China and Brazil on aircraft procurement before moving ahead with plans to purchase Boeing planes, Prime Minister Datuk Seri Anwar Ibrahim said.
Anwar said the decision to acquire the aircraft was made by Malaysia Aviation Group (MAG) following the carrier's return to profitability after years of financial losses.
"The aircraft needed to be purchased. Since 2004, this is the first time Malaysia Airlines has recorded a profit after years of losses.
"As for Malaysia Airlines purchasing Boeing aircraft, that was a decision made by MAG. They had two options for this fleet, and yes, they had to make a purchase.
"For the first time after years of losses, they recorded a profit, due to the management decisions. We did not interfere politically. Management must remain transparent and efficient," he said in the Dewan Rakyat today.
He added that alongside the Boeing order, MAG had also placed orders last year for wide-body aircraft from Airbus. Malaysia, Anwar said, had also engaged in discussions with Brazil and China.
He said, however, that China responded that their aircraft were suited for domestic use, while Brazil has yet to deliver despite an earlier order.
Anwar, who is also the finance minister, said the government had imposed a condition that aircraft manufacturers must carry out production in Malaysia, a requirement that both Boeing and Airbus already meet.
"Airbus wings, for example, are produced in Negri Sembilan, Kulim and Selangor. The same goes for Boeing components.
"There is a rapidly rising demand for routes to India, China and Japan, requiring MAS to ramp up its fleet capacity.
"If we support the private sector like AirAsia, why can't we do the same for Malaysia Airlines?" he added," he said.
Yesterday, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz had said Malaysia has committed US$242.56 billion (RM1.14 trillion) in purchases and investments in the United States as part of efforts to narrow the trade imbalance between the two countries.
Tengku Zafrul said the deals made between Malaysia and the US include the procurement of Boeing aircraft by MAG worth US$19 billion as part of a long-term, phased plan to renew and expand its fleet capacity.