PUTRAJAYA: The Cabinet has approved the proposal to turn the Civil Aviation Authority of Malaysia (CAAM) into a statutory body with separate remuneration and exemption effective Aug 1, says Anthony Loke.
The Transport Minister said the merger between CAAM and the Malaysian Aviation Commission (Mavcom) – the country’s two aviation regulatory agencies - is expected to help the government save between RM1.5bil and RM2bil over the next decade.
“This exercise will help save RM150mil to RM200mil from government coffers annually.
“Over the next 10 years, this amounts to at least RM1.5bil to RM2bil,” he told reporters on Monday (June 23).
Loke explained that CAAM will take over Mavcom’s economic regulatory functions and become a statutory body with its own terms and freedoms.
He also reassured that the merger will not have any direct financial impact on passengers.
Loke said that Aviation Services Charges have been revised and applied to airlines since January.
“The majority of the revenue comes from foreign airlines using our airspace.
“We hadn’t reviewed these charges since the 1980s, and we finally did so in recent years,” he added.
He said this would contribute significantly to CAAM’s financial independence.
Loke also stated that the merger aligns with international best practices, which favour a single regulatory body for the aviation sector.
The consolidation follows the passing of the Mavcom Bill 2024, which led to Mavcom’s dissolution, along with amendments to the CAAM Bill 2024.
Loke assured that Mavcom staff will be offered positions within CAAM after the merger.
“The restructuring will be carried out in an orderly and transparent manner, guided by good governance. A business continuity plan will also be communicated to affected staff through internal engagement sessions,” he added.
Loke said that currently there were 57 staff members under Mavcom, which would be offered positions at CAAM upon the merger.
