CAAM set to be sole aviation regulator with Mavcom role takeover

The Civil Aviation Authority of Malaysia (CAAM) and the Malaysian Aviation Commission (Mavcom) will be rationalised effective Aug 1, bringing the aviation industry's regulatory functions under one entity, CAAM.

In a press conference in Putrajaya today, Transport Minister Anthony Loke said CAAM will fully take over the economic regulatory functions that Mavcom previously carried out.

“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 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.

The move was at par with international best practices, where other countries are now adopting a single regulatory model in the aviation sector to ensure more effective coordination, he added.

Loke said this rationalisation also lays a solid foundation for CAAM to drive the growth of Malaysia's aviation industry.

“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.

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 Parliament last year and gazetted on Sept 25, 2024.

Loke stressed that all Mavcom staff will be offered suitable placements at CAAM based on their skills and experience, as well as salary adjustments.

Statutory body status

The government has also agreed to make CAAM a remunerated, separated and exempted statutory body effective Aug 1.

Loke said the cabinet had agreed on the matter on June 11 when it approved the proposal.

“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.

This is part of the government's ongoing efforts to strengthen the national aviation institution, he added.

“It also ensures that Malaysia remains a country with a technical and economic aviation regulatory system that is credible, competent and meets international standards.”

RM400m estimated revenue

He said CAAM has the ability to operate as an independent statutory body 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, so the revenue for this period 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 the Public Service Department to grant CAAM as a statutory body," he explained.

Previously, Prime Minister Anwar Ibrahim was reported to have said that CAAM will be considered as a statutory body which is separated from remuneration.

- Bernama

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