PUTRAJAYA, June 23 – The Civil Aviation Authority of Malaysia (CAAM) and the Malaysian Aviation Commission (Mavcom) will be rationalised effective August 1, to bring the aviation regulatory functions under the CAAM alone.
In a press conference here today, Transport Minister Anthony Loke said the CAAM will take over economic regulatory functions previously carried out by Mavcom.
“The CAAM and Mavcom are being rationalised where all aviation industry regulatory functions including technical and economic aspects will be consolidated under one entity: CAAM.
“The rationalisation of the CAAM and Mavcom is part of the government’s institutional reform efforts to improve regulatory structure efficiency, reduce the duplication of functions between agencies that have similar roles and ensure more integrated and efficient service delivery to the industry and the people,” he said.
Loke said the move is in line with international best practices where other countries are now adopting a single regulatory model in the aviation sector to ensure more effective coordination.
Loke said this rationalisation lays a solid foundation for the CAAM to drive the growth of Malaysia’s aviation industry, in line with the country’s aspiration to become a competitive and inclusive advanced economy.
To implement this rationalisation, the Malaysian Aviation Commission (Dissolution) Bill 2024 and the Malaysian Civil Aviation Authority (Amendment) Bill 2024 were tabled and passed in the Dewan Rakyat on June 26, 2024, and in the Dewan Negara on July 30, 2024.
Both acts received the assent of the King on September 11, 2024, and were gazetted on September 25, 2024.
“Both acts will come into force from August 1, 2025, coinciding with the enforcement date of CAAM as a Remunerated Separated and Exempted Statutory Body (BBDSB).
“This means this statutory body will no longer require financial injections from the government through annual allocations. It is also not subject to the government’s remuneration system … It will be an independent body in terms of finances and also its remuneration,” he said.
He added that the CAAM hcan operate as a BBDSB as it records a certain amount of profit through charges to, among others, international airlines and parties that use Malaysian airspace.
“Rght now, our estimated revenue for this year is about RM400 million. We have collected approximately RM150 million in the first five months of this year, so the revenue for the first five months of this year has exceeded the entire year of last year.
“That has given us the confidence that it will be financially independent and sustainable. And that is also one of the important conditions for the Cabinet and for the JPA (Public Service Department) to grant the CAAM as BBDSB,” he said.
Meanwhile, Loke stressed that Mavcom staff will be offered suitable placements in the CAAM based on their skills and experience.
He said a town hall will be held to discuss the new salary rates for CAAM staff following its merger with Mavcom and the increase in duties.
“Offer letters will be issued to all 57 Mavcom staff by the end of this month,” he said.
He said that through this restructuring, Malaysia is now in a stronger position to face global challenges in the aviation sector.
“CAAM will be better prepared to drive the growth of the aviation industry in a more progressive and sustainable direction.
“This is in line with the government’s goal to make Malaysia a regional aviation hub, and support the country’s agenda towards inclusive, balanced and innovation-driven economic development,” Loke said.
