CAAM to be made financially independent statutory body
PUTRAJAYA: The government has agreed to make the Civil Aviation Authority of Malaysia (CAAM) a Remunerated Separated and Exempted Statutory Body (BBDSB) effective August 1, said Transport Minister Anthony Loke.
In a press conference here today, he said the matter was agreed by the Cabinet on June 11, which approved the proposal to make CAAM a BBDSB.
'This means that this statutory body will no longer require financial injections from the government through annual allocations. At the same time, it is also not subject to the government's remuneration system.
'It is exempted from remuneration and separated from the government. So, it will be an independent body in terms of finances and also its remuneration,' he said.
Loke said this decision is in line with the government's ongoing efforts to strengthen the national aviation institution.
'It also ensures that Malaysia remains a country with a technical and economic aviation regulatory system that is credible, competent and meets international standards,' he said.
He said CAAM has the ability to operate as a BBDSB because it records a certain amount of profit through certain charges to, among others, international airlines and parties that use Malaysian airspace.
'So right 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 JPA (the Public Service Department) to grant CAAM as BBDSB,' he said.
Previously, Prime Minister Datuk Seri Anwar Ibrahim was reported to have said that CAAM will be considered as a statutory body which is separated from remuneration.
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