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Technical Paper: Aviation Sector MultiplierSummary of Long Term Recommendations (2021-2030)

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Following the creation of a the Framework and based on the feedback received through the various stakeholder workshops conducted, CAAM 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 CAAM’s recommendations

Prerequisite Sub-sector Action Item Implementation Item Implementation Period Stakeholders
Involved
National Aviation Strategy (NAS) All Developing a NAS Developing a NAS Foundation-setting
  • MOT1

 

1MOT: Ministry of Transport

Objective: Maximising air connectivity
Sub-sector Action Item Implementation Item Implementation Period Stakeholders Involved
All Strengthening Malaysia’s economic base Coordinating tourism development plans with air routes in terms of the Air Traffic Rights (ATR) negotiations with other countries Foundation-setting
  • MOTAC2
  • Tourism Malaysia
  • MOT
  • CAAM
  • 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
  • CAAM
  • Air freight companies
  • Airports
Airlines Improving utilisation of ASAs1 Ensuring that ASAs1 are linked to connectivity considerations Long-term
  • MOT
  • CAAM
All Ensuring multi-modal, seamless connectivity Establishing a policy commitment for transportation development plans to account for their impact on and connectivity with other modes of transport Foundation-setting
  • MOT
  • MEA
  • CAAM
  • 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-sector Action Item Implementation Item Implementation Period Stakeholders Involved
All Enforcing a sound and updated aviation-related competition law Applying competition law based on fair competition principle Short to medium-term
  • CAAM
Applying competition law based on free competition principle Medium to
long-term
  • CAAM
Incorporating competitive neutrality principle and rules on subsidies Medium to
long-term
  • CAAM
Promoting liberalisation of ownership-related measures for the civil aviation industry Applying a phased approach to liberalisation of ownership-related measures, depending on the GOM7 appetite for liberalisation Medium to
long-term
  • MOF6
  • MOT
  • CAAM
All Reducing 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 sector Short term
  • Ministries
  • MOT
  • Agencies
Airlines ASEAN8 community carrier Championing the establishment of a community carrier in ASEAN Long-term
  • MOT
  • CAAM
  • Airlines

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

Strategic Pillar 2: Making available appropriate airports infrastructure
Sub-sector Action Item Implementation Item Implementation Period Stakeholders Involved
Airports Greater commercial behaviour of airports Changing 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 levels Full implementation of Airports Quality of Service Framework for all airports Foundation-setting
  • CAAM
  • 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-sector Medium to
long-term
  • MOT
  • CAAM
  • Ground Handling Licence holders
  • Airports
  • Airlines
Developing a framework to measure the efficiency of Malaysia’s airports Foundation-setting
  • CAAM
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-sector Action Item Implementation Item Implementation Period Stakeholders Involved
All Setting 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
  • 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
  • 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

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