Photo by Shahrin Yahya/The Edge

PUTRAJAYA (June 13): The government is moving ahead with its plan to merge the Malaysian Aviation Commission (Mavcom) and the Civil Aviation Authority of Malaysia (CAAM) into a single regulatory agency.

The Cabinet had approved the Malaysian Aviation Commission (Dissolution) Bill 2024 and the Civil Aviation Authority of Malaysia (Amendment) Bill to be tabled in the upcoming parliament session to be held from June 24 to Aug 1, Transport Minister Anthony Loke Siew Fook said.

The proposed merger aims to reduce bureaucracy, and improve the effectiveness and efficiency of the civil aviation service delivery system, particularly in licensing services, Loke said at a press conference here on Thursday.

Currently, Mavcom is in charge of regulating the aviation’s economic and commercial matters, while the CAAM is responsible for technical matters and safety of the industry.

Following the merger, there will no longer be a need to obtain separate approvals from two different agencies, Loke noted. Instead, a single government entity will process technical approvals and issue licences.

"The regulatory framework for Malaysia's aviation industry will undergo restructuring, consolidating it under a unified entity to promote the growth of the civil aviation sector, in accordance with the government’s strategy to enhance global competitiveness," he said.

The actual merger of the two aviation authorities will only commence next year, details of which will be announced later. The merged entity will then be an independent statutory body under the Ministry of Transport, Loke said.

Loke also stressed that the move will not have any additional financial implications for the government, and that all of Mavcom staff will be offered to be absorbed into the CAAM.

The merger between Mavcom and the CAAM was initially proposed by Loke in 2019, during his first tenure as the transport minister for the then Pakatan Harapan administration.

The announcement prompted a strong response from then Mavcom executive chairman Dr Nungsari Ahmad Radhi, who expressed disappointment that the ministry did not consult the commission before making the decision.

Nungsari is currently the chairman of state-owned Malaysia Airports Holdings Bhd (KL:AIRPORT) that operates Terminal 1 of the Kuala Lumpur International Airport and the adjacent Terminal 2, home to low-cost carrier AirAsia. The company also manages more than three dozen other smaller airports.