Transport minister Loke Siew Fook said all 57 Mavcom staff would be offered positions in CAAM, based on their experience and qualifications.
“We assure all stakeholders that this transition will be carried out in an orderly and smooth manner. Every staff member will be informed of their new role in due course,” he told a press conference at his ministry here.
Loke said the merger would position CAAM as the sole regulatory authority for the aviation industry in Malaysia, covering technical, safety, and economic aspects.
He added that this would not involve additional costs to passengers.
Instead, he said the rationalisation would result in significant cost savings, which would be redirected to attract and retain qualified technical personnel, especially in critical areas like air traffic control and aviation safety.
He said most of this revenue would come from the air navigation charges imposed on airlines using Malaysian airspace, especially foreign carriers, since January this year.
“It will save the government RM150 million to RM200 million annually,” he said, adding that CAAM currently had a total of 1,430 employees.
He also said that the government’s decision to grant CAAM the status of a statutory body with separate emoluments would make the regulator financially independent.
“This is not just a merger. It’s a fundamental step towards strengthening CAAM’s position as a more competitive, resilient, and progressive regulator in line with international best practices.”
Loke said CAAM’s estimated revenue for 2025 was RM420 million, an increase from RM100 million to 110 million per annum previously.
“As of May this year alone, CAAM collected RM150 million, which is more than its total revenue for all of last year,” he added.
Loke said these reforms were necessary following Malaysia’s downgrade from Category 1 to Category 2 by the US Federal Aviation Administration, partly due to CAAM’s inability to offer market-competitive salaries to technical staff.
“With this new financial model, we can offer better packages and retain top talent.”
On Malaysia Rail Link Sdn Bhd’s concerns that cable theft could disrupt the timeline for the East Coast Rail Link project, Loke said he had contacted the home ministry and police.
He asked the police to take stern action against those involved, also taking into consideration public safety and national security.
“The theft of cables is not only happening here. KTM has also experienced delays because of cable theft,” he said.