Kuala Lumpur: The government has decided to transform the Civil Aviation Authority of Malaysia (CAAM) into a Remunerated Separated and Exempted Statutory Body (BBDSB) effective August 1, as announced by Transport Minister Anthony Loke. This move, agreed upon by the Cabinet on June 11, will allow CAAM to operate independently, free from the need for government financial injections and not bound by the government’s remuneration system.

According to BERNAMA News Agency, Transport Minister Loke emphasized that the statutory body will be financially autonomous and exempt from government remuneration, making it independent in both finances and remuneration aspects. This strategic decision aligns with the government’s ongoing initiatives to fortify the national aviation institution, ensuring that Malaysia remains a nation with a robust, credible, and internationally recognized aviation regulatory framework.

Minister Loke further elaborated that CAAM has demonstrated its capability to function as a BBDSB, supported by the profits generated through charges to international airlines and other users of Malaysian airspace. For the current year, CAAM projects a revenue of approximately RM400 million, having already amassed around RM150 million in the first five months alone, surpassing the total revenue from last year. This financial performance underpins the confidence in CAAM’s ability to sustain itself independently, fulfilling the requirements set by the Cabinet and the Public Service Department (JPA) for its status as a BBDSB.

Previously, Prime Minister Datuk Seri Anwar Ibrahim mentioned that CAAM would be considered a statutory body, distinct in terms of remuneration.