KUALA LUMPUR – The Civil Aviation Authority of Malaysia (CAAM) will officially become a financially autonomous statutory body effective August 1, Transport Minister Anthony Loke announced today.
He said the Cabinet had on June 11 approved CAAM’s reclassification as a “Badan Berkanun yang Diberi Saraan Secara Berasingan dan Dikecualikan” (BBDSB) – a Remunerated Separated and Exempted Statutory Body.
“This means the authority will no longer rely on government allocations and will not be subject to the public service remuneration scheme,” he said at a press conference.
“It is exempt from remuneration and separated from the government. So, it will be an independent body in terms of finances and also its remuneration.”
Loke said the change aligns with the government’s efforts to strengthen Malaysia’s aviation institutions and uphold global standards.
“It also ensures that Malaysia remains a country with a technical and economic aviation regulatory system that is credible, competent and meets international standards,” he said.
CAAM’s financial strength was a key factor in securing Cabinet and Public Service Department approval, said Loke, noting the authority’s growing revenue stream.
“Our estimated revenue for this year is about RM400 million. We have collected approximately RM150 million in the first five months alone – exceeding the entire revenue for last year,” he said.
“That has given us the confidence that it will be financially independent and sustainable.”
Previously, Prime Minister Datuk Seri Anwar Ibrahim said CAAM would be considered for BBDSB status to enable it to operate with greater autonomy. – June 23, 2025