PUTRAJAYA: The low-altitude economy (LAE), which includes drone deliveries and aerial infrastructure inspections as well as future air taxi services, is projected to become a RM30bil industry by 2030.
Civil Aviation Authority of Malaysia (CAAM) chief executive officer Datuk Norazman Mahmud said the emerging sector presents significant economic opportunities but stressed that safety would remain the regulator's top priority.
He said about 200,000 drones are currently registered with CAAM, making it crucial to ensure operations are conducted safely and without compromising public safety.
The LAE refers to economic activities conducted within low-altitude airspace using emerging aviation technologies and services.
Beyond drones, it encompasses advanced air mobility, urban air mobility, autonomous aerial logistics, emergency response operations, smart infrastructure inspections and communications infrastructure.
CAAM deputy chief executive officer Capt Mohd Radzi Mohamad Alias said LAE covers aerial operations from ground level up to 1,000m.
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He said the technology could support a broad range of services including drone food deliveries, autonomous cargo transportation, emergency delivery of medicines and medical supplies as well as inspections of pipelines and communications infrastructure in remote areas.
"In the past, inspections of pipelines and communications infrastructure in remote areas were carried out using helicopters.
"Today, drones can perform the same tasks at a much lower cost and with improved safety," he said during a media briefing ahead of the LAE Forum 2026 recently.
The forum was opened by Transport Minister Anthony Loke on Wednesday (June 24).
Radzi said future applications could also include urban air mobility such as air taxis capable of transporting small numbers of passengers using aircraft that differ from conventional aeroplanes.
He said developing the industry would require dedicated aerial routes for low-altitude aircraft similar to building an expressway network in the sky, complete with designated pick-up and drop-off points.
Radzi revealed that planning would also involve developing financing mechanisms, attracting investors and building a sustainable ecosystem to support future growth..
"Our priority is to ensure every LAE operation is carried out safely while remaining commercially viable. CAAM is responsible for ensuring the safety, security and sustainability of the industry because we are answerable to the public," he said.
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He said Malaysia would begin by focusing on non-passenger operations before gradually expanding into passenger services once the ecosystem, regulations and supporting infrastructure are sufficiently developed.
Under the CAAM Act 2017, the authority is responsible for regulating, overseeing, promoting and developing the country's civil aviation ecosystem.
Its role in the LAE extends beyond regulation to include safety oversight, airspace management, industry development, regulatory framework development and enabling a safe and sustainable aviation ecosystem aligned with international standards.
The LAE Forum 2026 would serve as the national starting point to raise awareness of the sector, gather feedback from stakeholders, discuss regulatory readiness, share international best practices and support the development of Malaysia's low-altitude aviation ecosystem.
The forum is expected to bring together industry players, government agencies, technology providers, academia, aviation stakeholders and investors as Malaysia charts its roadmap for the emerging industry.
Loke said at the forum's launch that the LAE blueprint is expected to be launched by the end of the year.
