malaysia

Najib: Khazanah, EPF to expand investments in US, more Boeing aircraft for Malaysia Airlines

Prime Minister Datuk Seri Najib Razak listens during his meeting with US President Donald Trump in the Cabinet Room of the White House in Washington September 13, 2017. — Reuters picPrime Minister Datuk Seri Najib Razak listens during his meeting with US President Donald Trump in the Cabinet Room of the White House in Washington September 13, 2017. — Reuters picWASHINGTON, Sept 13 ―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 Razak announced today.

The EPF alone is expected to invest between US$3 billion (RM12.6 billion) and US$4 billion.

“I want to say that we came here with a strong value proposition to put on the table. We want to help you strengthen the US economy,” Najib said a delegation meeting with US President Donald Trump.

Najib, who is also Finance Minister, said the Malaysian delegation had three specific proposals.

First, he said 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.

Later, the Prime Minister  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 Trump was the highlight of Najib’s September 11-13 working visit to the US at the invitation of the 45th US president who took office on January 20, 2017.

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 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. ― Bernama

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