Kuala Lumpur: The Civil Aviation Authority of Malaysia (CAAM) is set to become the sole regulatory body for the aviation industry from August 1, following the consolidation of its functions with those of the Malaysian Aviation Commission (MAVCOM).
According to BERNAMA News Agency, Transport Minister Anthony Loke announced during a press conference that CAAM would assume the economic regulatory responsibilities previously managed by MAVCOM. This move aims to streamline the regulatory framework by bringing all aviation industry functions, including technical and economic aspects, under CAAM. The initiative is part of the government’s broader institutional reform agenda, designed to enhance regulatory efficiency and eliminate function duplication across agencies.
Loke noted that the shift aligns with global best practices, as many countries are now transitioning to a single regulatory model in the aviation sector to ensure better coordination. This rationalisation is expected to strengthen CAAM’s capacity to foster growth in Malaysia’s aviation industry, aligning with the nation’s aspirations to develop a competitive and inclusive advanced economy.
The legislative groundwork for this transition involved the passing of the Malaysian Aviation Commission (Dissolution) Bill 2024 and the Malaysian Civil Aviation Authority (Amendment) Bill 2024. These bills were approved by the Dewan Rakyat and Dewan Negara in June and July 2024, respectively. After receiving the Yang di-Pertuan Agong’s assent on September 11, 2024, the acts were published in the Gazette on September 25, 2024. They will become effective on August 1, 2025, marking CAAM’s establishment as a Remunerated Separated and Exempted Statutory Body (BBDSB).
Loke assured that all MAVCOM employees would be offered positions at CAAM that match their skills and experience. A town hall session is planned to address the new salary structures for CAAM staff, reflecting the expanded responsibilities post-merger. Offer letters will be distributed to the 57 MAVCOM staff by the end of the month.
Through this reorganisation, Loke emphasized that Malaysia is better positioned to tackle global challenges in the aviation sector. CAAM is expected to lead the industry towards a more progressive and sustainable future, supporting the government’s vision of establishing Malaysia as a regional aviation hub and advancing its agenda for inclusive, balanced, and innovation-driven economic growth.