PUTRAJAYA: Malaysia must put in place a clear and robust regulatory framework to harness the growth of its emerging low-altitude economy or risk falling behind, Transport Minister Anthony Loke said today.
Speaking at the launch of the new corporate identity of the Civil Aviation Authority of Malaysia (CAAM), Loke warned that drones, air taxis and other low-level aviation services cannot “properly take off” without strong oversight, particularly where passenger and cargo safety are concerned.
“The low-altitude economy is a fast-emerging sector worldwide and Malaysia cannot afford to be complacent. We need to set out clear rules and ensure strong governance so that innovation is not held back, but at the same time safety remains non-negotiable,” he said.
Loke stressed that regulation is not about stifling new technologies, but about instilling confidence among investors, operators and the public.
“Without robust frameworks, the industry will not gain traction because stakeholders need certainty and assurance,” he added.
The low-altitude economy covers a range of activities including logistics drones, passenger air mobility and unmanned aerial systems. Analysts forecast the global drone market alone could be worth hundreds of billions within the next decade, with potential spillovers in logistics, healthcare and urban transport.
On the new corporate identity, CAAM CEO Datuk Captain Norazman Mahmud said the rebranding exercise reflects more than just a change of image – it marks a transformation in how the regulator positions itself to meet the demands of a rapidly evolving aviation industry.
“Today marks an important milestone in CAAM’s journey. The unveiling of our new corporate identity is more than a change of image, it represents a transformation in how we, as the nation’s sole aviation regulator, position ourselves to meet the needs of an industry that is dynamic, challenging and vital to Malaysia’s future,” he said.
Norazman highlighted that aviation has always been a cornerstone of Malaysia’s growth. “It drives tourism, creates employment and connects our businesses to the world. For this reason, a strong regulator is not only about safety oversight, but also about instilling confidence that Malaysia is a trusted, competitive and globally connected aviation hub.”
Loke said Malaysia’s efforts to embrace next-generation air mobility must be aligned with international best practices, particularly those of the International Civil Aviation Organisation (ICAO). “Our goal is not only to facilitate the growth of local operators but to ensure Malaysia is recognised as a serious player in global aviation.”
The minister added that the government would take a measured approach in appointing new members to aviation-related boards, stressing the importance of finding the “right person with the right credentials” to fill vacancies.
Relating to the merger of the Malaysian Aviation Commission (Mavcom) and CAAM, Loke said almost all staff from the former regulator had been absorbed into the new structure, except for a small number who chose to opt out due to factors such as age or personal considerations.
“We have kept our promise that the merger would not disadvantage staff. Everyone who was confirmed with Mavcom has been offered a place under CAAM,” he said.
Industry observers say the move to strengthen CAAM’s identity and governance comes at a crucial time. Air travel demand is rebounding strongly post-Covid pandemic and new technologies are poised to reshape the aviation landscape, from digitalised air traffic management to sustainable fuels and electric propulsion.
Norazman said CAAM’s transformation also carries a sustainability agenda. “It means embracing green initiatives such as decarbonisation goals, green airport practices, and ICAO’s target of net zero carbon emissions by 2050. At the same time, we are investing in training and international collaboration to ensure Malaysia has the skilled talent required to support growth,” he said.
Loke underscored that the aviation regulator’s mission remains unchanged despite the transformation. “At the end of the day, our priority is safety and efficiency. We want to encourage innovation, but it must always be underpinned by strong regulatory foundations,” he said.
As Malaysia looks to position itself as an aviation hub for the region, both Loke and CAAM emphasised unity of purpose.
“The Transport Ministry, industry partners and CAAM are aligned in one mission, to ensure safer skies and a stronger aviation future for Malaysia,” Norazman said.