[UPDATED] Dewan Rakyat: 93 MPs vote in support of bill to merge Mavcom, CAAM

KUALA LUMPUR – The Malaysian Aviation Commission (Dissolution) Bill 2024 proceeded for a third reading in the Dewan Rakyat today after a bloc vote called by the opposition failed to impede the matter. 

In reading out the votes, Dewan Rakyat Speaker Tan Sri Johari Abdul said that 93 lawmakers supported the bill aimed at facilitating the merger of the Malaysian Aviation Commission (Mavcom) and the Civil Aviation Authority of Malaysia (CAAM). 

However, a total of 63 MPs voted against the move, while 66 lawmakers were absent from the lower House.

Following the outcome of the vote, the bill was tabled for a third reading and passed by voice vote. 

In a press conference following the vote, PAS MP Khairil Nizam Khirudin (Jerantut-PN) slammed the decision to proceed with the bill despite the opposition raising objections and concerns related to potential abuse of power. 

“Perikatan Nasional (PN) is not questioning Mavcom or CAAM’s professionalism, we know that the agencies cover different scopes, with CAAM overseeing technical aspects while Mavcom monitors economic regulations. 

“What we’re fighting for has more to do with how the merger will see Mavcom losing its absolute power as it will be placed under the Transport Ministry, in opposition to its establishment as an independent body to oversee the aviation industry,” he said. 

He also lamented the government’s apparent refusal for the bill to be referred to the Parliamentary special select committee on infrastructure, transportation and communication. 

He said that the committee would be able to produce a complete report on the matter within two weeks, following which lawmakers can debate its findings before a decision is made. 

Expressing similar sentiments, Bersatu Youth chief Wan Ahmad Fayhsal Wan Ahmad Kamal asserted that Mavcom is the “final defence,” which could prevent the potential controversial sale of Malaysia Airports Holdings Bhd’s (MAHB) shares to Israel-linked investment funds manager BlackRock Inc. 

“Mavcom can kill the bill, which we’re opposing as we want to save MAHB from falling into the hands of the pro-Zionist BlackRock – that’s our moral message to the rakyat, and we’re standing firm with our principles.” 

The lawmaker also questioned why Umno lawmakers were not present during the voting, alleging that the government party is also “displeased” with the bill. 

“I’ve been made to understand that Khazanah Nasional Bhd and EPF (Employees Provident Fund) held a special briefing session for Umno leaders today. Why is that? Why are they afraid of Umno?” he queried.

Earlier, during his winding-up session for the bill’s second reading, Transport Minister Anthony Loke (Seremban-PH) said the decision to merge Mavcom and CAAM has been discussed for several years now, stressing that the issue has nothing to do with MAHB’s affairs. 

“(The proposed MAHB privatisation exercise involving BlackRock) will have to go through Mavcom’s approval process, which will still involve its existing commission members… If Mavcom says it doesn’t agree (with the proposal), then it won’t happen. 

“In terms of human resources and functions, it will take some time to combine the two entities. Before the dissolution is enforced, Mavcom will carry out its responsibilities as usual,” the minister said. 

On June 5, Loke said the decision to merge Mavcom and CAAM followed the cabinet’s approval on December 11, 2019 to dissolve Mavcom and transfer all its functions to CAAM.

He added that the reform also aims to reduce bureaucratic hurdles and improve the civil aviation service delivery system, especially in licensing services. 

BlackRock, which also holds shares in weapons companies supplying arms to Israel, made headlines in Malaysia after the move to take MAHB private was announced on May 15.

The privatisation move will see the Gateway Development Alliance consortium, led by sovereign wealth fund Khazanah, via its wholly owned subsidiary UEM Group Bhd and the EPF acquire all shares at an offer price of RM11 per share, amounting to an equity value of RM18.4 billion.

Global Infrastructure Partners (GIP), which is set to be acquired by New York-based BlackRock by the third quarter of this year, and the Abu Dhabi Investment Authority (Adia) are the consortium’s shareholders.

Upon completion, GIP and Adia would own 30% of MAHB while Malaysia would own the remaining 70% as well as a golden share. – June 26, 2024