The US previously imposed a 25% tariff on Malaysian imports effective Aug 1, a rate which was reduced to 19% today after several rounds of negotiations.
“We have made some commitments regarding commercial considerations, one of which is the purchase of Boeing aircraft,” said investment, trade and industry minister Tengku Zafrul Aziz at a press conference here today.
“Malaysia is set to buy a second phase of Boeing aircraft from the US, valued US$9.5 billion, matching the value of the first phase purchase.”
In March, Prime Minister Anwar Ibrahim said Malaysia Aviation Group (MAG) had placed an order for 30 Boeing 737 aircraft with the planes to be delivered to the company by 2030.
Anwar said the 30 planes for MAG, which is the parent company of national carrier Malaysia Airlines, comprise 18 Boeing 737-8 aircraft and 12 Boeing 737-10s.
Orders for hundreds of Boeing jets have been announced over the past week in deals with Japan, the United Arab Emirates, Indonesia, Cambodia, Bangladesh, and other countries as part of negotiations to reduce US tariffs.
No compromise on halal certification
On claims that Malaysia may loosen its halal certification requirements as among the conditions to lower the tariff, Tengku Zafrul said the country had only agreed to ease the process of importing meat from the US.
“This will be done by the halal certification body in the US which is recognised by the Islamic development department (Jakim).
“The imports will still need to meet Jakim’s standards, so it’s not true at all that we’re ‘giving in’ on our halal standards,” he said.
He also said there was no agreement for the exclusive supply of rare earths to the US or other countries.
“In fact, the US did not make any such request,” he said.
The Straits Times yesterday reported that Malaysia may recognise US halal certification and supply rare earth elements to the US in a bid to reduce the tariff on Malaysian exports to the US.
Malaysia has more than 16 million tonnes of rare earth element (NR-REE) deposits with a total commercial value approaching RM1 trillion.
Earlier today, the investment, trade and industry ministry said Malaysia made no compromises on its “red lines” in negotiating a lower tariff on exports to the US.
In a statement, it attributed the tariff reduction to a “thorough and methodical negotiating process”, adding that the 19% rate roughly tracked the rate of other countries in Southeast Asia.
Malaysia’s halal standards certification were among the issues cited by the Office of the US Trade Representative as barriers leading to the 24% tariff initially imposed on April 2.
Malaysian exports to the US reached an all-time high in 2024, valued at nearly RM200 billion, according to data from the Malaysia External Trade Development Corporation (Matrade).