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.
“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.
