PUTRAJAYA, June 25 – Transport Minister Anthony Loke today announced that the Civil Aviation Authority of Malaysia (CAAM) will officially become a financially and administratively independent statutory body starting August 1.
The move, which includes a merger with the Malaysian Aviation Commission (Mavcom), is expected to save the government between RM1.5 billion and RM2 billion over the next 10 years, thanks to CAAM no longer requiring annual government allocations and being exempt from standard public service remuneration systems.
The merger will see CAAM absorb Mavcom’s economic regulatory functions, making it the sole authority overseeing technical, safety, and economic matters in the aviation sector. Loke highlighted CAAM’s strong financial performance in the first five months of 2025—surpassing last year’s revenue—which reinforces its capacity for self-sustainability.
He added that the consolidation supports Malaysia’s vision to become a regional aviation hub, and a townhall will soon be held to facilitate the transition of 57 Mavcom staff into CAAM.
