The Employees Provident Fund (EPF) and Khazanah Nasional Bhd plan to expand their investments in the United States and purchase more Boeing jets to help strengthen the country’s economy, Prime Minister Datuk Seri Najib Tun Razak announced today. The EPF alone is expected to invest between US$3 billion and US$4 billion. Datuk Seri Najib said this in Washington after a delegation meeting with US President Donald Trump. Datuk Seri Najib, who is also Finance Minister, said the Malaysian delegation had three specific proposals.
First, Malaysia intended to increase the number of Boeing planes to be purchased by Malaysia Airlines Bhd (MAB), “we are committed to 25 planes of 737-MAX 10, eight 787 Dreamliners and there is strong probability, not possibility, that we will add 24 (or) 25 more 737-MAX 10 in the near future.” So, within five years, with the additional purchase, the deal will be worth beyond US$10 billion, he said. The 737 MAX 10 will be the airline’s most profitable single-aisle airplane, offering the lowest seat costs ever while the 787 Dreamliner is a long-haul, mid-size wide-body, twin-engine jet airliner. The Prime Minister also witnessed the signing of a Memorandum Of Understanding between Malaysia Airlines and Boeing Aircraft Corporation for the purchase of aircraft and the setting up a Maintenance, Repair and Overhaul facility in Sepang, totalling US$3.9 billion.
The discussion with President Trump was the highlight of Datuk Seri Najib’s working visit to the US at the invitation of the 45th US president. Datuk Seri Najib said the government would also try to persuade low-cost carrier, AirAsia Bhd, to purchase US-made General Electric engines.
“Second, we have the EPF, which is major pension fund in Malaysia. They have got big sums of capital to be exported, they have invested close to US$7 billion in terms of equity in the US and they intend to invest an additional US$3 billion to US$4 billion to support your infrastructure re-development,” said Datuk Seri Najib. The Prime Minister also said that Khazanah Nasional, which has an office in the Silicon Valley, California, and had already invested about US$400 million in high-technology companies, intended to increase its investments.