Loke: CAAM Replaces Mavcom as Single Aviation Authority

The Civil Aviation Authority of Malaysia (CAAM) will become an independent statutory body with full control over its finances and staffing starting Aug 1, 2025. The announcement was made earlier today by Transport Minister Anthony Loke Siew Fook.

From that date, CAAM will also take over the role of the Malaysian Aviation Commission (Mavcom), becoming the single body in charge of regulating both the technical and economic sides of the aviation industry.

Loke said the government approved the move on June 11 as part of ongoing efforts to streamline overlapping government agencies and improve efficiency.

“This means CAAM will no longer rely on annual government funding and will not be tied to the public service pay system,” he said at a press conference. “It will have full financial and administrative freedom.”

He said CAAM’s strong financial performance this year played a big part in the government’s decision. In just the first five months of 2025, CAAM earned RM150 million, which was more than its total revenue for all of last year.

“In the past, CAAM needed RM150 to RM200 million from the government just to stay afloat. Now, it’s in a much better place,” he said.

Two laws, the Malaysian Aviation Commission (Dissolution) Act 2024 and the Civil Aviation Authority of Malaysia (Amendment) Act 2024 were passed in Parliament last year to enable the change: one to dissolve Mavcom and another to amend CAAM’s status. 

Both were approved by the King in Sept 2024 and will come into effect in Aug 2025.

Loke added that all 57 staff from Mavcom will be offered roles in CAAM, matched to their skills and experience. A townhall session will be held soon to brief them on what to expect during the transition.

He also said CAAM has put in place a business continuity plan to make sure everything runs smoothly as the changes are carried out.

“This move gives CAAM the tools to grow and guide the aviation industry in a stronger, more sustainable way,” Loke said.