Putrajaya confirms Mavcom to be dissolved, absorbed by CAAM for efficiency’s sake

Yiswaree Palansamy
Malaysia will now have only one civil aviation regulator, after the Transport Ministry (MOT) today confirmed the disbandment of the Malaysian Aviation Commission (Mavcom) and have its key roles absorbed by the Civil Aviation Authority of Malaysia (CAAM). ― Reuters pic

KUALA LUMPUR, Dec 12 — Malaysia will now have only one civil aviation regulator, after the Transport Ministry (MOT) today confirmed the disbandment of the Malaysian Aviation Commission (Mavcom) and have its key roles absorbed by the Civil Aviation Authority of Malaysia (CAAM).

In a statement today, MOT said that the Cabinet during its meeting on December 11, 2019 had agreed that the regulatory body of the Malaysian aviation industry be rationalised and placed under one entity.

In view of this, the ministry said that Mavcom is to be disbanded, to optimise resources and increase management efficiency, as well as paving the way for increased competitiveness.

“The rationalisation initiative of a civil aviation regulatory body to be placed under one entity, would not only optimise existing human and financial resources, but will enhance the efficiency of governance and the quality of service delivery.

“This step is in line with the government’s current policy direction in rationalising the public sector, especially to enhance efficiency, and efficiency of the government’s agency delivery system.

“At the same time, this initiative would encourage the development of the civil aviation industry to be more competitive and competitive internationally. The government is committed to ensuring the development of a modern, sustainable, safe and efficient civil aviation sector in accordance with the National Transportation Policy 2019-2030,” the ministry said.

The rationalisation plan will see a number of legislative amendments — including the repeal of Malaysian Aviation Commission Act 2015 (Act 771) and amendments to the Civil Aviation Authority of Malaysia Act 2017 (Act 788).

MOT said the repeal of Act 771 will allow Mavcom’s functions to be transferred to CAAM, adding that most positions at Mavcom involving expertise in certain areas, will be transferred to CAAM.

“The Ministry of Transport would then restructure the new CAAM, as deemed fit, to ensure that this rationalisation process is executed swiftly, taking into account the new workload that will be assumed by CAAM.

“To this end, the Ministry of Transport will hold in-depth discussions with the Ministry of Finance, the Public Service Department and the Attorney General’s Chambers on issues of structure, functions, jurisdiction, implications of employment, finance and legislation,” the ministry added.

Earlier today, business daily The Edge quoted an several sources confirming the merger, reportedly saying that the latest development is following the Cabinet’s approval for the integration of the said agencies to empower CAAM.

It reported that the move raises uncertainties over the regulated asset base (RAB) framework which Mavcom is reportedly working on.

The daily reported that Mavcom had only recently announced that it is in the final stages of completing the RAB framework, which forms the basis for funding and developing the airport network in the country.

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