PETALING JAYA: The Malaysian Aviation Commission’s (Mavcom) new regulatory framework could see up to 20 million passengers benefiting from a lower passenger service charge (PSC), the commission said in a statement today.
Mavcom said it is in the final stages of completing its regulated asset base (RAB) framework which forms the basis for funding and developing the airport network in the country.
Among the airports that are expected to charge a lower PSC are Langkawi, Penang, Kota Kinabalu, Kuching, Miri, Sibu, Tawau, Lahad Datu, Kota Baru and Alor Star.
“The total planned development spending for the next regulatory period (2020-2022) as well as the new PSC, landing fees and aircraft parking fees will be announced soon,” Mavcom said, adding that it aims to implement the new rates from Jan 1, 2020.
Mavcom executive chairman Nungsari Ahmad Radhi said the commission sought the views of various stakeholders in determining rates that were equitable and made economic sense.
“The decision to set charges must be viewed in its entirety and not to benefit any one entity and have multi-pronged benefits that will ensure investor confidence in the aviation sector in the longer term.
“What is crucial is that any decision pertaining to the implementation of the PSC and airport development must be undertaken in an orderly manner adhering to the rule of law without causing unnecessary and undue confusion as well as distress to the market,” he said.
The commission has presented the RAB framework with four different airport tiers for PSC to policy makers, including Prime Minister Tun Dr Mahathir Mohamad.
Mavcom said the RAB framework would lay out a clear and transparent funding mechanism would ensure enough investments are made in Malaysia’s airports without any fiscal burden to the government. “The commission estimates that the government would have to incur approximately RM300 million per annum in subsidies if the PSC is not properly set and underinvestments in airports will continue. With the commission’s RAB framework, the government will instead be able to allocate its resources to other pressing needs in the country.”
Mavcom has been conducting a comprehensive study on the RAB framework since 2017 and has engaged with more 80 stakeholder groups, including ministries.
It expects the finalised RAB framework to: ensure adequate funding is available to meet Malaysia’s airport maintenance and develop-ment needs, institute conditions for more disciplined capital expenditure spending in Malaysia’s airports sector, eliminate any need for government subsidy or government expenditure in the airports’ development and management, and create differentiated PSC rates for groups of airports, depending on their service levels and infrastructure.
The framework also aims to reduce the PSC for most commercial airports in Malaysia and ensure that airport charges in the country remain among the lowest in the region.
