KUALA LUMPUR – The Civil Aviation Authority of Malaysia (CAAM) will officially take over the economic regulatory functions of the Malaysian Aviation Commission (Mavcom) from August 1, streamlining the country’s aviation oversight under a single body.
Transport Minister Anthony Loke said the move marks a full consolidation of both technical and economic regulatory powers under CAAM – a shift aimed at cutting duplication and boosting efficiency.
“This rationalisation will see all aviation industry regulatory functions – including both technical and economic aspects – placed under CAAM,” he said at a press conference today.
Loke said the decision is part of broader institutional reforms and aligns with international best practices, where aviation regulation is managed by a single agency for better coordination.
“The goal is to provide more integrated and effective service delivery to both the industry and the public,” he added.
The legal basis for the merger was set with the passing of the Malaysian Aviation Commission (Dissolution) Act 2024 and the Civil Aviation Authority (Amendment) Act 2024.
Both were passed in Parliament last year and will take effect on August 1, 2025 – the same day CAAM begins operating as a Remunerated Separated and Exempted Statutory Body (BBDSB).
“This provides a clear legal framework for CAAM to officially take over Mavcom’s roles and responsibilities,” said Loke.
To ensure a smooth transition, all 57 Mavcom staff will be offered roles in CAAM, with placements matched to their skills and experience. Offer letters will be issued by the end of this month.
A town hall will also be held to address new salary structures and changes to responsibilities following the merger.
Loke said the consolidation puts Malaysia in a better position to respond to global aviation challenges and drive long-term industry growth.
“CAAM will be better equipped to steer the aviation sector forward in a more progressive and sustainable direction. This supports our ambition to become a regional aviation hub and drive inclusive, innovation-led economic growth,” he said.
Earlier, Loke announced that CAAM will gain full financial autonomy from August 1, following its reclassification as a BBDSB. This means it will no longer rely on government allocations or be bound by the public service pay scheme.
“It will be an independent body in terms of finances and also its remuneration,” he said.
Loke added that CAAM’s strong revenue – RM150 million collected in the first five months of 2025 – underpins its ability to operate sustainably. – June 23, 2025