PUTRAJAYA: The merger of Malaysia’s two aviation regulatory agencies is expec­ted to help the government save between RM1.5bil and RM2bil over the next decade, says Transport Minister Anthony Loke (pic).

He said the rationalisation of the Civil Aviation Authority of Malaysia (CAAM) and the Malaysian Aviation Commission (Mavcom) would take effect on Aug 1, following recent Cabinet approval.

“This exercise will help save RM150mil to RM200mil from government coffers annually.

“Over the next 10 years, this amounts to at least RM1.5bil to RM2bil,” he told repor­ters yesterday.

Loke explained that CAAM would take over Mavcom’s economic regulatory functions and become a statutory body with its own terms and freedoms.

He also reassured that the merger would have no direct financial impact on passengers.

The minister said Aviation Services Charges had been revised and applied to airlines since January.

“The majority of the revenue comes from foreign airlines using our airspace.

“We had not reviewed these charges since the 1980s, and we finally did so in recent years,” he added.

He said this would contribute signifi­cantly to CAAM’s financial independence.

Loke also stated that the merger aligned with international best practices, which favour a single regulatory body for the avia­­tion sector.

The consolidation follows the passing of the Mavcom Bill 2024, which led to Mavcom’s dissolution, along with amendments to the CAAM Bill 2024.

The minister assured that the 57 Mavcom staff would be offered positions within CAAM after the merger.

“The restructuring will be carried out in an orderly and transparent manner, gui­ded by good governance.

“A business continuity plan will also be communicated to affected staff through internal engagement sessions,” he added.

Batik Air chief executive officer Datuk Chandran Rama Murthy said the consolidation is a constructive step that is seen to ease regulatory processes by streamlining oversights under one governing entity.

“This subsequently is expected to enhan­ce operational efficiency and improve coordination across regulatory functions, thus, enabling a more conducive environment for industry players,” he said.

Chandran also expressed appreciation to Mavcom for its valuable support and contributions to Batik Air and the aviation industry over the years.

“Its efforts have played a vital role in shaping a more robust and customer- focused aviation landscape in Malaysia.

“Batik Air looks forward to continued collaboration with CAAM in this new phase, as we collectively advance the nation’s aspirations to become a competitive and sustainable regional aviation hub,” he said.

Meanwhile, on cable theft involving railways, Loke said the incident should be investigated under laws relating to public safety and national security.

He said the offence should not be seen merely as a normal theft case.

“I have openly requested the police to take action not only under theft-related offences, as this issue concerns both public safety and national security.

“There must be stricter enforcement against the offenders, but I leave it to the discretion of the police,” he said.

The Star previously reported that the East Coast Rail Link (ECRL) project has also been affected by cable theft.

It was reported that contractors were facing significant challenges, with more than 1,200m of signalling cables stolen along the rail alignment, along with the removal of 81 outdoor transformer units.

Loke said cable theft is not only affecting the ECRL but is also impacting the Keretapi Tanah Melayu Bhd (KTMB) rail network.

“KTM has faced significant delays in their projects due to cable theft,” he said, adding he had contacted the Home Ministry to address this issue.