Dewan Rakyat passes bill to dissolve Mavcom
PARLIAMENT | The Dewan Rakyat today passed the bill to dissolve the Malaysian Aviation Commission (Mavcom).
The Mavcom (Dissolution) Bill 2024, tabled by Deputy Transport Minister Hasbi Habibollah on Monday (June 24), was passed via a majority voice vote after a heated debate during the sitting.
The second reading of the bill...
PARLIAMENT | The Dewan Rakyat today passed the bill to dissolve the Malaysian Aviation Commission (Mavcom).
The Mavcom (Dissolution) Bill 2024, tabled by Deputy Transport Minister Hasbi Habibollah on Monday (June 24), was passed via a majority voice vote after a heated debate during the sitting.
The second reading of the bill, which was tabled by Transport Minister Anthony Loke earlier today, was approved via bloc vote with 93 in favour, 63 against, while 66 were absent.
The bill aimed to dissolve Mavcom, transferring its rights, powers, and funds to the Civil Aviation Authority of Malaysia (CAAM).
Existing contracts made by Mavcom will remain valid until they expire.
Once enacted, Mavcom and its staff will gradually integrate into CAAM by next year, aiming to reduce bureaucracy and improve the efficiency of civil aviation services.
One regulatory body to oversee sector
With the merger of Mavcom and CAAM, Loke said the aviation industry no longer requires two separate regulatory bodies to monitor the affairs of the nation’s civil aviation sector.
“The decision for the dissolution of Mavcom was comprehensively done through engagement sessions with relevant stakeholders such as the CAAM, Attorney-General’s Chambers, Public Service Department, Domestic Trade and Consumer Affairs Ministry, Economy Ministry, as well as the Finance Ministry.
“The unified mechanism is also employed by most countries that oversee the world’s major air transportation sectors such as the United States, United Kingdom, Germany, Singapore and China.
“This merger will also be able to optimise the use of existing human and financial resources, in addition to improving the efficiency of governance and service delivery system,” he said when tabling the second reading of the bill today.
He also highlighted that the bill sought to provide for the transfer of Mavcom’s powers, rights, duties, liabilities and obligations to CAAM.
All of Mavcom’s existing agreements, deeds, documents and other instruments will also be transferred to CAAM, Loke said.
“All money standing in or due to be paid to the Aviation Commission Fund and Public Service Fund established under the Mavcom Act 2015 shall be transferred to the CAAM Fund established under the CAAM Act 2017,” he said.
In a related development, the merger will also see some amendments made to the CAAM Act 2017, which will be tabled in the august house.
Among the amendments include the expansion of its members by “not less than six but more than eight other members”.
According to the proposed changes, CAAM will also include a representative from the Economy Ministry apart from the Finance and Transport Ministries.
‘Mavcom last defence against sale of MAHB shares’
Separately, the opposition bloc, in a presser held at the Parliament after the bill was passed, called for the bill to be referred to the Parliamentary Special Select Committee.
While pointing out that the opposition is not against the idea of the merger, Khairil Nizam Khirudin (PN-Jerantut) stressed that the PSSC should conduct a thorough investigation first and for its report to be later debated in the Dewan Rakyat.
“The committee has nine members. Three are from the opposition, and the remaining six are from the government.
“Coincidentally, the chairperson of the Special Select Committee on Infrastructure, Transportation and Communication is an MP from the government bloc. So why the fear?” he queried.
Sharing similar sentiments was Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang), who expressed his concerns that the merger would result in Mavcom losing its power as the economic regulator to Malaysia Airports Holdings Berhad.
“Mavcom is our last defence against the sale of MAHB shares to Blackrock, as they are MAHB’s economic regulator,” he said.
The controversy over MAHB erupted on May 15, when Khazanah Nasional Berhad announced that the Abu Dhabi Investment Authority and Global Infrastructure Partners (GIP) - through GIP Aurea Pte Ltd - would form a consortium to acquire shares in the airport operator.
The decision courted flak from various quarters after it was found that Blackrock, a company deemed to have close ties with Israel, is acquiring GIP.
However, Prime Minister Anwar Ibrahim dismissed concerns of national security being compromised, saying that the deal would not involve Blackrock.
“Security concerns never arose because it (MAHB) is still owned by the government,” he told the Dewan Rakyat yesterday.
This is because Khazanah and the Employees Provident Fund will still own 70 percent of MAHB, Anwar explained.
