Aircraft deal sparks bid for bigger returns, says Loke

The Star

6 hours ago

RIO DE JANEIRO: Malaysia's significant aircraft purchase orders, totalling US$20bil (RM84bil), provides an excellent opportunity for the country to attract more investments from the selling firms, says Transport Minister Anthony Loke.
He added the heavy purchase orders paved the way for negotiations with manufacturers like Airbus to invest in Malaysia for training and boosting the supply chain.
'We want them to help make us a hub in this region. This will ensure that the purchase is not a one-way process. We will benefit in many other ways,' he said after the week-long working and official visits by Prime Minister Datuk Seri Anwar Ibrahim to several countries.
Both Loke and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz have accompanied Anwar on the trip to Rome, Paris and Rio de Janeiro.
Other ministers who joined the visit were Foreign Minister Datuk Seri Mohamad Hasan, Defence Minister Datuk Seri Mohamed Khaled Nordin, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, and Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
Loke said he visited Toulouse in France, where the aircraft manufacturer is based, and was told that the waiting list for aircraft delivery stood at 8,000 orders.
'This is a long backlog to wait for our orders to be delivered. It's a good thing our PM was here to talk to Macron (French President Emmanuel Macron) to help speed things up,' he added.
Malaysia, he said, also spoke to officials from Embraer, a prominent aircraft manufacturer in Brazil about the possibility of some purchases.
It was reported that AirAsia reached a tentative agreement to purchase as many as 70 extended-­range Airbus single-aisle jets that could reach US$12.3bil (about RM52bil).
Malaysia Airlines (MAS) ordered 20 more A330neo widebody planes, in a deal worth US$7.5bil (RM31.7bil), according to calculations before industry discounts.
Earlier, Anwar also spoke about aircraft purchases, saying: 'We cannot simply keep buying from Airbus alone. We need alternative suppliers too.
'We are working with AirAsia, which has ordered dozens of aircraft. We've had discussions with Amirul Feisal, the MD of Khazanah Nasional, and talks are ongoing between AirAsia and MAS regarding further purchases. We are choosing to diversify rather than rely solely on Western companies.'
Anwar said Malaysia placed conditions that benefitted the nation: part of the production must happen in Malaysia, or a base must be set up in Malaysia, and products must be sellable to a number of other countries.