MAG’s Boeing Order Tailwinds 13MP’s Economic Blueprint

By Raminder Singh

KUALA LUMPUR, Aug 9 (Bernama) -- Malaysia Aviation Group’s (MAG) purchase of 30 Boeing 737 MAX aircraft is a strategic manoeuvre aligned with the goals of the 13th Malaysia Plan (13MP) for economic transformation, industrial upskilling, and global trade recalibration.

Prime Minister Datuk Seri Anwar Ibrahim told the Dewan Rakyat on Monday that the Boeing deal is a purely commercial decision, driven by MAG's operational requirements and growth strategy.

The 13MP, which aims to drive sustainable growth based on value creation across sectors, involves investments of RM611 billion over five years starting in 2026, of which RM430 billion is marked for the government's development allocation. 

“The Boeing aircraft acquisition reflects confidence in the long-term outlook of the aviation and tourism industries, and supports our national agenda of strengthening industrial linkages,” he emphasised, adding that the deal, which includes 18 MAX 8s and 12 MAX 10s — with an option for 30 more — is scheduled for delivery through 2030.

The prime minister accordingly said that Boeing’s local suppliers -- including DRB-HICOM Bhd's subsidiary Composite Technology Research Malaysia Sdn Bhd (CTRM), SME Aerospace Sdn Bhd, and UPECA Aerotech Sdn Bhd -- generated over RM25 billion in revenue and supported more than 30,000 jobs in 2024 alone.

These firms supply components across Boeing’s global aircraft lines, from nacelles and wing parts to electrical harnesses. Their long-term integration into the aerospace value chain aligns with the 13MP’s focus on cultivating strategic industries with high growth potential, as well as goals under the National Investment Aspirations (NIA).

A prime example is CTRM, which has been operating for over three decades. This company serves as a key Tier-2 supplier for both Airbus and Boeing, manufacturing composite parts such as wing components and fan cowls for various aircraft.

According to the Ministry of Investment, Trade and Industry (MITI), Airbus accounted for 84 per cent of CTRM’s revenue in 2023, while Boeing contributed 11 per cent.

MAG, which already operates 13 MAX 8s, is phasing out its ageing 737-800s. But the significance of the current deal extends far beyond aircraft cycles. It serves as a cornerstone in Malaysia’s aspiration to become an ASEAN aerospace hub.

The aircraft order also reinforces 13MP’s emphasis on strengthening international economic linkages to support long-term industrial competitiveness.

One factor tipping the scales towards Boeing was delivery availability, made possible by open MAX production slots amid slower Chinese demand. From a 13MP lens, such rapid capacity onboarding supports Malaysia’s ambitions to enhance regional trade, boost tourism flows, and position KL International Airport (KLIA) as a competitive transit hub.

Meanwhile, Malaysia Airlines’ Boeing order is not a zero-sum game for Airbus. The consortium remains a core pillar of Malaysia’s aerospace footprint, with a wing assembly facility in Negeri Sembilan and maintenance, repair, and operations (MRO) support in Subang, Selangor.

MAG recently doubled its A330neo widebody order to 40 aircraft. Group managing director Datuk Captain Izham Ismail said the A330neo continues to deliver the right balance of operational efficiency, range and cabin comfort to support MAG’s network and growth strategy.

“This additional order reinforces our long‑term vision of building a future‑ready fleet,” he said during the confirmation of MAG’s 20 A330‑900neo firm order in Toulouse, France last month.

In an increasingly multipolar aviation market, Malaysia’s strategy -- shaped by the ambitions of the 13MP  -- could serve as a regional blueprint: pragmatic, diversified and fiercely commercial.

-- BERNAMA