Selected Initiatives / MAVCOM’s Long Term Recommendations for the Malaysian Civil Aviation Industry (2021-2030) / Introduction
MAVCOM’s Long Term Recommendations for the Malaysian Civil Aviation Industry (2021-2030)
As part of MAVCOM’s role to advise and provide recommendations from an economic perspective to the Minister of Transport (MoT) for policy matters relating to civil aviation, the Commission has prepared a recommendation paper as a proposal to the MoT to provide long-term strategic direction for the Malaysian civil aviation sector.
Through the recommendation paper, MAVCOM aims to cultivate an economically sustainable and resilient civil aviation sector that facilitates in shaping Malaysia as a leading destination for global economic activity. In the paper, MAVCOM’s recommendation is for the implementation to take place in the long-term between 2021 to 2030.
The recommendation paper covers economic matters in aviation sub-sectors that are aligned with MAVCOM’s areas of responsibility, as defined in the Malaysian Aviation Commission Act 2015 [Act 771] such as:
- Passenger and cargo air transport, both scheduled and unscheduled (charter)
- Aerodrome (airport) operations
- Ground-handling services, such as passenger handling, refuelling, catering, and line maintenance (minor maintenance carried out on aircraft at or near the gate or terminal such as the tarmac).
Figure 1 below illustrates the areas that are focused upon in the recommendation paper:
Figure 1: Value chain of the aviation industry and sectoral coverage in the recommendation paper
The recommendation paper does not include sub-sectors considered ‘upstream’ such as aircraft design, engineering and manufacturing, leasing, and maintenance, repair and overhaul services. Air Navigation Services, under the purview of the technical and safety regulator, which is the Civil Aviation Authority of Malaysia (CAAM), are also outside the scope of the recommendation paper.
MAVCOM determined strategic pillars within the recommendation paper which are:
- Establishing and maintaining a fair and competitive commercial environment
- Making available appropriate airports infrastructure
- Developing a strong civil aviation-related human capital development base
The development of the recommendation paper was primarily based on internal research and analyses related to the economic development of the Malaysian civil aviation sector.
MAVCOM engaged various stakeholders in the development of the recommendation paper which include various ministries and agencies such as MoT, CAAM, the Ministry of Finance, the then-Economic Planning Unit, Ministry of Tourism, Arts and Culture, Bank Negara Malaysia, Ministry of Human Resources), as well as Malaysian civil aviation players such as Malaysia Airport Holdings Berhad, Senai Airport Terminal Services Sdn. Bhd., Malaysia Airlines Berhad, AirAsia Group Berhad, Malindo Airways Sdn. Bhd., selected Air Services Permit holders and holders of Ground Handling Licences.
The breakdown by each strategic pillar within the recommendation paper and the specific stakeholder related to each pillar can be found at the Summary page.