Malaysia pledges big purchases, investments with US

Malaysia has agreed to buy and invest over $240 billion (MYR1.02 trillion) in the U.S. to help reduce the trade gap between the two countries.

Malaysian Minister of Investment, Trade and Industry Zafrul Abdul Aziz, told the parliament on August 4 that the commercial considerations helped secure a lower 19% US tariff, down from 25%.

The deals made between Malaysia and the U.S. include the procurement of Boeing aircraft by Malaysia Aviation Group (MAG) worth $19 billion as part of a long-term and phased plan to renew and expand its fleet capacity.

Multinational companies of Malaysia are set to procure goods in the semiconductor, aerospace, and data centre sectors worth a total of $150 billion over five years.

Petronas has committed to the annual procurement of liquefied natural gas valued at $3.4 billion. Telekom Malaysia Bhd will purchase telecommunications products amounting to $119 million, while Tenaga Nasional Bhd will buy coal valued at $42.6 million annually.

Furthermore, Malaysia will undertake cross-border investments in the U.S. amounting to $70 billion over 10 years.

Zafrul stressed that the Boeing aircraft acquisition was "not a sudden decision made under tariff pressure" but part of MAG’s long-term plan to replace the ageing B737-800 aircraft and meet rising travel demand.

He added that the procurement also benefits Malaysia’s aerospace ecosystem, with local suppliers such as Boeing Composites Malaysia and SME Aerospace integrated into the global supply chain.

Zafrul reiterated that while Malaysia offered significant trade and investment commitments, it did not compromise on national interests, but maintained equity requirements in strategic sectors and rejected the full liberalisation of sensitive industries.

The minister said details of these commitments will be formally codified in the upcoming reciprocal trade agreement, which both governments are expected to sign soon.