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Selected Initiatives / MAVCOM’s Long Term Recommendations for the Malaysian Civil Aviation Industry (2021-2030) / Summary

Summary

Following the creation of a the Framework and based on the feedback received through the various stakeholder workshops conducted, MAVCOM formulated recommendations support Malaysia’s evolution into a top destination for global economic activity, which are summarised in the table below:

Table 1: Summary of MAVCOM’s recommendations

PrerequisiteSub-sectorAction Item
Implementation ItemImplementation PeriodStakeholders
Involved
National Aviation Strategy (NAS)AllDeveloping a NASDeveloping a NASFoundation-setting
  • MOT1
1MOT: Ministry of Transport

Objective: Maximising air connectivity
Sub-sectorAction ItemImplementation ItemImplementation PeriodStakeholders Involved
AllStrengthening Malaysia’s economic baseCoordinating tourism development plans with air routes in terms of the Air Traffic Rights (ATR) negotiations with other countriesFoundation-setting
  • MOTAC2
  • Tourism Malaysia
  • MOT
  • MAVCOM
  • Domestic and
    foreign airlines
  • Airports
Coordinating the development of air connectivity with initiatives, such as the Logistics and Trade Facilitation Master Plan (LTFMP)
  • MOT-LTFMP Taskforce
  • MITI3
  • MEA4
  • MAVCOM
  • Air freight companies
  • Airports
AirlinesImproving utilisation of ASAs1Ensuring that ASAs1 are linked to connectivity considerationsLong-term
  • MOT
  • MAVCOM
AllEnsuring multi-modal, seamless connectivityEstablishing a policy commitment for transportation development plans to account for their impact on and connectivity with other modes of transportFoundation-setting
  • MOT
  • MEA
  • MAVCOM
  • APAD5

1ASAs: Air Services Agreements 
2MOTAC: Ministry of Tourism, Arts and Culture 
3MITI: Ministry of International Trade and Industry
4MEA: Ministry of Economic Affairs
5APAD: Land Public Transport Agency

Strategic Pillar 1: Establishing and maintaining a fair and competitive commercial environment
Sub-sectorAction ItemImplementation ItemImplementation PeriodStakeholders Involved
AllEnforcing a sound and updated aviation-related competition lawApplying competition law based on fair competition principleShort to medium-term
  • MAVCOM
Applying competition law based on free competition principleMedium to
long-term
  • MAVCOM
Incorporating competitive neutrality principle and rules on subsidiesMedium to
long-term
  • MAVCOM
Promoting liberalisation of ownership-related measures for the civil aviation industryApplying a phased approach to liberalisation of ownership-related measures, depending on the GOM7 appetite for liberalisationMedium to
long-term
  • MOF6
  • MOT
  • MAVCOM
AllReducing government interference in commercial decision-making Ensuring that there are no conflicts of interest in the various overlapping roles that the GOM plays in the sectorShort term
  • Ministries
  • MOT
  • Agencies
AirlinesASEAN8 community carrierChampioning the establishment of a community carrier in ASEANLong-term
  • MOT
  • MAVCOM
  • Airlines

6MOF: Ministry of Finance
7GOM: Government of Malaysia
8ASEAN: Association of Southeast Asian Nations

Strategic Pillar 2: Making available appropriate airports infrastructure
Sub-sectorAction ItemImplementation ItemImplementation PeriodStakeholders Involved
AirportsGreater commercial behaviour of airportsChanging corporate governance
  • Granting full responsibility over capital and operational expenditures to airport operators
Medium to
long-term
  • MAHB8
  • MOT
  • MOF
Introducing competition in two phases
  • Decentralisation of MAHB
  • Introducing different airport networks
Medium to
long-term
  • MAHB8
  • MOT
  • MOF
Improving service levelsFull implementation of Airports Quality of Service Framework for all airportsFoundation-setting
  • MAVCOM
  • MAHB
  • SATSSB9
  • Other airport operators
Reforming the ground-handling sub-sector
  • Linking ground-handling services to airport performance (via strengthening Conditions of Use)


Medium to
long-term
  • MAHB
  • MOT
  • MOF
Liberalising the ground-handling sub-sectorMedium to
long-term
  • MOT
  • MAVCOM
  • Ground Handling Licence holders
  • Airports
  • Airlines
Developing a framework to measure the efficiency of Malaysia’s airportsFoundation-setting
  • MAVCOM
Committing to integrated terminals:
Policy commitment that airport terminals need to be integrated. In instances where disparate terminals have been built, airside and landside connectivity need to be provided		Short-term
  • MOT
  • Airport Operators

8MAHB: Malaysia Airports Holdings Berhad
9SATSSB: Senai Airport Terminal Services Sdn. Bhd.

Strategic Pillar 3: Developing a strong civil aviation-related human capital development base
Sub-sectorAction ItemImplementation ItemImplementation PeriodStakeholders Involved
AllSetting the baseline to develop a coordinated talent development strategy
  • Establishing a human capital database for the sector 
  • Establishing a human capital development working committee for the sector
  • Study the sector workflow and value chain
Foundation-setting
  • MOT
  • MOHR10
  • MAVCOM
  • CAAM
  • Industry players
Developing and implementing an industry-wide coordinated talent development strategy
  • Developing effective career-pathing for the sector
  • Setting up a pool training fund
Short to
medium-term
  • Working committee
  • MOT
  • MOHR10
  • MAVCOM
  • CAAM
  • Industry players
  • Developing industry training modules involving partnerships between industry and academia
Medium-term
  • Learning institutions
  • Industry players
    10MOHR: Ministry of Human Resources

    Note: The portfolio of the Ministry of Economic Affairs is now under the purview of the Economic Planning Unit, Prime Minister’s Department