Competition matters relating to the aviation industry in Malaysia are governed under Part VB (Competition) of the Civil Aviation Authority of Malaysia Act 2017 [Act 788].

The competition regime was first introduced under the Malaysian Aviation Commission Act 2015 [Act 771], which came into force on 1 March 2016, establishing a sector-specific competition framework for aviation services in Malaysia. Correspondingly, the Malaysian Aviation Commission Act 2015 is excluded from the application of the Competition Act 2010 through its insertion into Schedule 1 of the Competition Act 2010.

Following the enforcement of the Malaysian Aviation Commission (Dissolution) Act 2024 [Act 856], the competition-related functions and powers of the Malaysian Aviation Commission (MAVCOM) were transferred to the Civil Aviation Authority of Malaysia (CAAM) effective 1 August 2025.

Part VB (Competition) of the Civil Aviation Authority of Malaysia Act 2017 applies to —

• any commercial activity, agreement or merger affecting aviation services within Malaysia; and
• any commercial activity, agreement or merger transacted or executed outside Malaysia which has an effect on competition in any aviation service market in Malaysia.

Part VB (Competition) of the Civil Aviation Authority of Malaysia Act 2017 does not apply to any commercial activity, agreement or merger specified in the Third Schedule of the Act, which are as follows:

• The administration and provision of public service obligations and the agreements entered into in respect of the public service obligations;
• Existing agreements entered into with the Government as amended from time to time;
• An agreement or conduct to the extent to which it is engaged in an order to comply with a legislative requirement;
• Collective bargaining activities or collective agreements in respect of employment terms and conditions and which are negotiated or concluded between parties which include both employers and employees or organisations established to represent the interests of employers or employees;
• An enterprise entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly in so far as the prohibition under Division 2 of Part VB would obstruct the performance, in law or in fact, of the particular tasks assigned to the enterprise.

For matters relating to Part VB (Competition) of the Civil Aviation Authority of Malaysia Act 2017, please e-mail your enquiries to: competition@caam.gov.my

Division 1 of Part VB & Third Schedule of the Civil Aviation Authority of Malaysia Act 2017