23-06-2025
- Business
- New Straits Times
Inaccurate to compare CAAM-Mavcom merger to SPAD's dissolution, says Loke
PUTRAJAYA: The merger involving the Civil Aviation Authority of Malaysia (CAAM), which will take over the economic regulatory functions of the Malaysian Aviation Commission (Mavcom), should not be compared to the dissolution of the Land Public Transport Commission (SPAD) in 2018.
Transport Minister Anthony Loke said the consolidation of CAAM and Mavcom is intended to strengthen the regulator's role and establish a single authority to oversee the aviation industry.
"CAAM has always been a technical regulator, while Mavcom functions as an economic regulator.
"This merger does not replace CAAM's role; it enhances it. CAAM has long handled technical regulation, including aircraft, airlines and pilots.
"With the merger, CAAM's responsibilities are now expanded. Our aim is to have a single, unified regulator for the aviation sector," he told reporters here today.
Loke said comparing the CAAM-Mavcom merger with SPAD's dissolution and the formation of the Land Public Transport Agency (Apad) was inaccurate, as they occurred under entirely different circumstances.
Earlier today, Loke announced that CAAM will take over the economic regulatory functions of the Mavcom starting Aug 1.
This follows the merger of the two entities, under which CAAM will transition into a Statutory Body with Separated Terms and Freedoms (BBDSB), making it the sole aviation regulatory authority overseeing the technical, safety, and economic aspects of the industry.
Loke had said that the merger would save the government about RM1.5bil to RM2bil over the next decade.
In 2018, Loke had then announced the establishment of APAD following the decommissioning of SPAD.
He had said that Apas would be a full-fledged department under the ministry, headed by a director-general and tasked with planning the development of the country's land public transport system, including mass rail transit (MRT), light rail transit (LRT), rail transportation and bus systems.
