Malaysian Aviation Commission to be absorbed by Civil Aviation Authority of Malaysia on August 1
Published on: Monday, June 23, 2025
Published on: Mon, Jun 23, 2025
By: Minderjeet Kaur, FMT Text Size: Transport minister Loke Siew Fook said all 57 Mavcom staff would be offered positions in CAAM, based on their experience and qualifications. PUTRAJAYA: The Malaysian Aviation Commission (Mavcom) will be dissolved and integrated into the Civil Aviation Authority of Malaysia (CAAM) from Aug 1, a rationalisation move to streamline regulatory oversight without incurring higher charges on air passengers. Transport minister Loke Siew Fook said all 57 Mavcom staff would be offered positions in CAAM, based on their experience and qualifications. 'We assure all stakeholders that this transition will be carried out in an orderly and smooth manner. Every staff member will be informed of their new role in due course,' he told a press conference at his ministry here. Loke said the merger would position CAAM as the sole regulatory authority for the aviation industry in Malaysia, covering technical, safety, and economic aspects. He added that this would not involve additional costs to passengers. Instead, he said the rationalisation would result in significant cost savings, which would be redirected to attract and retain qualified technical personnel, especially in critical areas like air traffic control and aviation safety.
Advertisement He said most of this revenue would come from the air navigation charges imposed on airlines using Malaysian airspace, especially foreign carriers, since January this year. 'It will save the government RM150 million to RM200 million annually,' he said, adding that CAAM currently had a total of 1,430 employees. He also said that the government's decision to grant CAAM the status of a statutory body with separate emoluments would make the regulator financially independent. 'This is not just a merger. It's a fundamental step towards strengthening CAAM's position as a more competitive, resilient, and progressive regulator in line with international best practices.' Loke said CAAM's estimated revenue for 2025 was RM420 million, an increase from RM100 million to 110 million per annum previously. 'As of May this year alone, CAAM collected RM150 million, which is more than its total revenue for all of last year,' he added. Loke said these reforms were necessary following Malaysia's downgrade from Category 1 to Category 2 by the US Federal Aviation Administration, partly due to CAAM's inability to offer market-competitive salaries to technical staff. 'With this new financial model, we can offer better packages and retain top talent.' * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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