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The government will dissolve the Malaysian Aviation Commission (MAVCOM) as the regulatory body’s main functions will be transferred to the Malaysian Civil Aviation Authority (CAAM), according to the Ministry of Transport.
The government will dissolve the Malaysian Aviation Commission (MAVCOM) as the regulatory body’s main functions will be transferred to the Malaysian Civil Aviation Authority (CAAM), according to the Ministry of Transport.

KUALA LUMPUR: Ministry of Transport (MOT) has announced the government will dissolve the Malaysian Aviation Commission (MAVCOM) as the regulatory body’s main functions will be transferred to the Malaysian Civil Aviation Authority (CAAM).

In a statement released yesterday, MOT said the decision was made to rationalise the aviation industry, after having approval from the cabinet on December 11, 2019.

“The rationalisation initiative will not only optimise existing human and financial resources, but will enhance the efficiency of governance and the quality of service delivery,” said MOT.

The decision was in line with the government's current policy direction in rationalising the public sector, while enhancing the efficiency and competency of the government's agency delivery system.

“This initiative will also encourage the development of the civil aviation industry to be more competitive internationally. The government is committed to ensure the development of the civil aviation sector to be modern, sustainable, safe and efficient in accordance with the National Transportation Policy 2019-2030,” it added.

MOT said the rationalisation will include a number of legislative changes, including the repeal of the Malaysian Aviation Commission Act 2015 [Act 771] and amendments to the Malaysian Civil Aviation Authority Act 2017 [Act 788].

It said the repeal of Act 771 allows MAVCOM functions to be transferred to CAAM. It added most positions involving certain areas of expertise at MAVCOM will be transferred to CAAM.

MOT said appropriate structure of the new CAAM organisation will be established to ensure the rationalisation process would be implemented smoothly, while taking into account the new load task that will be taken over by CAAM.

“We will hold detailed discussions with the Ministry of Finance, the Department of Public Services and the Attorney General's Chambers on the structure, function, jurisdiction, implications of employment, finance and legislation.

“The creation of a comprehensive civil aviation regulatory entity will encourage the development of the national aviation industry, while strengthening Malaysia's role and its profile on international platforms.”

Meanwhile, Transport Minister Anthony Loke said the government would look after the welfare of the 59 Mavcom staff following the merger.

"Nobody should worry about them (the staff)," he told reporters after the launch of the new GTR (Ground Team Red) air cargo hub hub here.

"We think the consolidation exercise would make our regulatory body more efficient by eliminating red tape. Currently, any airline, air cargo or ground handling company that wants to operate need to get licences, they need to get the approval from CAAM and also the approval from Mavcom.

"This is another layer of bureaucracy which we want to cut down as we want to transform and empower CAAM."

Loke said it would need time to deliberate with the relevant stakeholders on the structure of the updated regulatory body.

"Mavcom will operate as normal until the relevant Acts have been repealed or amended.

“In the coming months, Mavcom staff will still go to office as usual. We will pay their salary as usual."

To a question, Loke said, it would take at least six months or more to repeal or amend the relevant laws including the Mavcom Act and the CAAM Act.

On Mavcom executive chairman Dr Nungsari A Radhi's disappointment for allegedly not being consulted on the merger, Loke said he was baffled by Nungsari's reaction.

"I am surprised why Nungsari was upset to the extent issuing a statement on it. I have not made any statement until now (today) and I have just directed the ministry's secretary-general to issue an official statement on it," he said.

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