logo
Malaysia to have single aviation regulator starting Aug 1, says Transport Minister

Malaysia to have single aviation regulator starting Aug 1, says Transport Minister

PUTRAJAYA: Malaysia will have a single aviation regulator beginning Aug 1, following the merger of the Civil Aviation Authority of Malaysia (CAAM) and the Malaysian Aviation Commission (Mavcom), Transport Minister Anthony Loke announced today.
He said the move, part of the government's broader reform agenda, will see CAAM take over Mavcom's economic regulatory functions, becoming the sole authority overseeing all technical, safety and economic aspects of the nation's aviation industry.
"With this integration, CAAM will operate as a statutory body with separated remuneration and autonomy (BBDSB), providing it with greater flexibility in financial governance, human resource management, and strategic decision-making," the minister said at a media briefing here.
Loke added that the streamlined structure would lay a strong foundation for CAAM to drive sustainable growth and support Malaysia's ambition to become a regional aviation hub.
He also said A si the legal processes backing this initiative were conducted transparently and in accordance with parliamentary procedure.
Two key bills — the Malaysian Aviation Commission (Dissolution) Bill 2024 and the Civil Aviation Authority of Malaysia (Amendment) Bill 2024 were passed by the Dewan Rakyat on June 26, 2024, and approved by the Dewan Negara on July 30, 2024.
Both acts received the consent of the King of Malaysia, His Majesty Sultan Ibrahim on Sept 11, 2024, and were gazetted on Sept 25, 2024.
The acts will come into force concurrently with the effective date of the merger.
Loke said all 57 current Mavcom employees will be offered placements in CAAM based on their skills and experience.
He added that it also assured that the entire transition will be carried out in a transparent and well-coordinated manner, guided by best governance practices and supported by a comprehensive Business Continuity Plan (BCP).
"With this initiative, Malaysia is well-positioned to revitalise its aviation sector in a more sustainable and competitive way."
"CAAM is expected to play a pivotal role in realising the country's aspirations of becoming a dynamic regional aviation hub, in line with Malaysia's inclusive and innovation-driven development goals," Loke said.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Mavcom to be absorbed by CAAM on Aug 1
Mavcom to be absorbed by CAAM on Aug 1

Free Malaysia Today

time3 hours ago

  • Free Malaysia Today

Mavcom to be absorbed by CAAM on Aug 1

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. 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.' On Malaysia Rail Link Sdn Bhd's concerns that cable theft could disrupt the timeline for the East Coast Rail Link project, Loke said he had contacted the home ministry and police. He asked the police to take stern action against those involved, also taking into consideration public safety and national security. 'The theft of cables is not only happening here. KTM has also experienced delays because of cable theft,' he said.

CAAM to become statutory body, absorb Mavcom effective Aug 1
CAAM to become statutory body, absorb Mavcom effective Aug 1

The Sun

time4 hours ago

  • The Sun

CAAM to become statutory body, absorb Mavcom effective Aug 1

PUTRAJAYA: The Civil Aviation Authority of Malaysia (CAAM) will transition into an independent statutory body effective Aug 1, with separate remuneration and exemption from the government. Transport Minister Anthony Loke Siew Fook said the government has strengthened the regulatory structure and development of the national aviation industry by transitioning CAAM into a Statutory Body with Separated and Exempted Remuneration (BBDSB), and by rationalising CAAM and the Malaysian Aviation Commission (Mavcom). He said this change will save the government between RM150 million and RM200 million annually and between RM1.5 billion and RM2 billion over the next 10 years. With this rationalisation, CAAM will take over the economic regulatory functions previously carried out by Mavcom, making CAAM the sole regulatory body for the aviation industry, encompassing technical, safety, and economic aspects. Loke noted that this decision by the government will grant CAAM autonomy and flexibility in financial governance, human resource management and the ability to make strategic decisions. Additionally, CAAM will have the capacity to plan and implement more efficient resource management strategies in line with international best practices. 'The estimated revenue for CAAM this year is about RM420 million. Previously, our annual revenue was only in the region of RM100 million to RM110 million. 'Given these figures, it is clear that CAAM could not survive on its own. That is why, until now, it has required an annual injection of at least RM150 million to RM200 million from the government to keep its operations running – and that is before accounting for the maintenance of our air traffic control towers, other facilities, or any development projects. 'Now, our estimated revenue for this year stands at RM400 million. We have already collected about RM150 million in just the first five months, exceeding the total revenue for the entire previous year. 'This strong performance has given us the confidence that CAAM will become financially independent and sustainable. This financial sustainability is also one of the critical conditions set by the Cabinet and the Public Service Department for granting CAAM its status as a BBDSD,' he told reporters in a briefing today. Loke said this initiative is part of the government's current reform agenda and policy direction to improve service delivery efficiency and to centralise government institutions with overlapping roles. Through this rationalisation, it establishes a solid foundation for CAAM to drive the growth of the aviation industry towards a progressive and sustainable future, supporting Malaysia's goal to become a regional aviation hub. This capability is also crucial for CAAM's efforts to retain and attract highly skilled talent in technical fields, especially qualified technical personnel who are critical in ensuring the safety and security of the national aviation industry. Loke said this sector requires a workforce that is not only qualified but also highly skilled and experienced, in compliance with the requirements of the International Civil Aviation Organization. 'With this significant increase in revenue, CAAM will achieve financial independence and gain the capacity to offer more competitive remuneration, particularly for our technical personnel. This is a critical step forward, as our inability to compensate our qualified technical staff at market rates was a key factor in CAAM's previous downgrade from Category 1 to Category 2 by the US Federal Aviation Administration,' Loke said. The audit findings at that time made it clear that competitive salaries are essential for talent retention, he disclosed. 'Now, with improved financial standing, we are in a much stronger position to attract and retain top-tier technical talent. Our objective is not only to secure the best-qualified technical personnel but also to invest in the development of our air traffic controllers, enhancing their skills and operational efficiency. 'This approach aligns with our commitment to building a robust and sustainable workforce for the future of Malaysia's aviation industry,' the minister said. Loke assured all Mavcom employees that they will have the opportunity to transition into roles within CAAM following the merger. He emphasised that the restructuring process will be managed systematically and with complete transparency, in line with established governance principles. Additionally, a business continuity plan has been developed and will be shared with impacted staff through dedicated internal briefings. Currently, Mavcom employs 57 personnel, all of whom will be considered for positions at CAAM as part of the merger process.

CAAM to take over functions of Mavcom from Aug 1 to become sole aviation industry regulatory body
CAAM to take over functions of Mavcom from Aug 1 to become sole aviation industry regulatory body

Sinar Daily

time5 hours ago

  • Sinar Daily

CAAM to take over functions of Mavcom from Aug 1 to become sole aviation industry regulatory body

Transport Minister Anthony Loke said CAAM would fully take over the economic regulatory functions previously carried out by Mavcom. 23 Jun 2025 01:41pm CAAM and Mavcom are being rationalised where all aviation industry regulatory functions including technical and economic aspects will be consolidated under one entity. - Bernama photo PUTRAJAYA - The Civil Aviation Authority of Malaysia (CAAM) and the Malaysian Aviation Commission (Mavcom) will be rationalised effective August 1, bringing the aviation industry's regulatory functions under one entity, CAAM. In a press conference here today, Transport Minister Anthony Loke said CAAM would fully take over the economic regulatory functions previously carried out by Mavcom. The move was 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. - Bernama file photo "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 CAAM and Mavcom is part of the government's institutional reform efforts to improve the efficiency of the regulatory structure, reduce 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 was 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 also lays a solid foundation for 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 [Act 856] and the Malaysian Civil Aviation Authority (Amendment) Bill 2024 [Act A1723] 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 Yang di-Pertuan Agong on September 11, 2024 and were published in the Gazette 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). "With the enactment of these two acts, the transfer of functions and responsibilities from Mavcom to CAAM can be implemented in accordance with the law officially," he said. Loke stressed that all Mavcom staff will be offered suitable placements at CAAM based on their skills and experience. He said a town hall session would also 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," he said. - BERNAMA

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store