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AIDE- MÉMOIRE

MALAYSIA FOR ICAO COUNCIL

2025 - 2028

INTRODUCTION

1. The air travel industry is a cornerstone of the Malaysian economy, having experienced significant growth over the past decade. The aviation sector significantly contributes to broadening export opportunities and promoting travel and tourism, which subsequently aids in enhancing trade links between Malaysia and other nations.

2. Malaysia's dynamic and practical long-term aviation policy, which includes a strong institutionalization framework, adherence to the ICAO's Standards and Recommended Practices (SARPs), strategic development objectives, and continuous support for the aviation sector's growth, has always been essential to the country's status as a major player and hub in the Asia Pacific region.
   
   
3. Since May 7 1958, Malaysia has been a member of the ICAO. As one of the nations chosen to provide worldwide geographical representation in the Council, Malaysia has held a seat in Part III of the ICAO Council since 2007. Subsequently, Malaysia has successfully retained its Council membership until 2025.
   
   

4. As a member of the ICAO Council, Malaysia has fully supported this endeavor and demonstrated a strong commitment to achieving the ICAO's primary objectives. In light of all the dedication, accomplishments, and contributions mentioned above, Malaysia is pleased to announce its candidacy for the ICAO Council under Part III at the 42nd ICAO General Assembly in 2025.

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OVERVIEW – AVIATION INDUSTRY

5. Malaysia's air passenger traffic is expected to hit record high in 2025 with  growth projection between 8.4 per cent year-on-year (YoY) and 15.6 per cent YoY, translating to 105.8 million and 112.9 million passengers. This would mark the first time since the onset of the COVID-19 pandemic that Malaysia's air traffic exceeds the previous record of 109.3 million passengers recorded in 2019.

6. Looking ahead, the projected growth in passenger traffic for 2025 will be driven by additional seat capacity deployment by airlines, increased demand for international travel, and overall increase in household income.

7. Malaysia's air cargo sector is also set for steady growth, with air cargo volumes forecasted to grow by 4.5 per cent to 8.5 per cent YoY, supported by a recovering global economy and the continued expansion of e-commerce.

COMMITMENT (TECHNICAL & ECONOMIC)

1. Strengthening the Role of Civil Aviation Authority Malaysia (CAAM)

CAAM is vested with regulatory authority over technical matters pertaining to civil aviation. In order to maintain aviation's safety, security, and efficiency, CAAM was mandated to adhere to ICAO standards and pledged a commitment to support the growth of Malaysia's civil aviation technical industry.

Along with its regulatory and oversight responsibilities, CAAM provides civil aviation-related technical and consulting services, training and education, and research and development for the civil aviation industry. These initiatives support, encourage, facilitate, and aid in the growth and enhancement of Malaysia's civil aviation capabilities, services, and skills.

The Malaysian Aviation Consumer Protection Code 2016 (MACPC) covers a wide range of consumer travel rights, including pertaining to flight delays and cancellations, lost or damaged baggage, and transparency in air fare advertising. It also requires airlines to raise awareness regarding consumer rights, ensuring that consumers are informed of their rights before, during, and after their journey.

The MACPC has undergone two amendments, with the first amendment that took effect on 1 June 2019 and the subsequent amendment which came into force on 1 September 2024. These enhancements have further empowered consumers to exercise their air travel rights, reflecting Malaysia's ongoing commitment to improving consumer protection while elevating the standard of service and efficiency in the aviation sector.

3. Promoting Fair Competition

​Malaysia has made a significant effort to encourage fair competition in the civil aviation sector. By adhering to international standards and best practices for competition law and enforcement, Malaysia is able to better monitor and enhance competition in the industry and comply with the competition provisions of its Air Service Agreements and other multilateral agreements that match international standards and best practices for competition law and enforcement.

4. Digitalised Solutions for the Industry Through AeroLicence & Protection of Consumers' Rights via FlySmart

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AeroLicence

​Malaysia, via MAVCOM, has launched AeroLicence – an electronic licensing system to enhance efficiency and provide greater convenience for aviation service providers via a digitalised approach, which has greatly benefitted the industry during the COVID-19 pandemic and provides a sustainable approach for licensing documentation.

 5. Green Aviation Commitment

​On 5 September 2024, Malaysia officially launched the Malaysia Aviation Decarbonization Blueprint (MADB), a comprehensive national decarbonization roadmap that extrapolates Malaysia's State Action Plan (SAP) commitments. The MADB incorporates longer-term measures and policy priorities, ensuring that the Malaysian aviation sector can meet its Long-Term Aspirational Goal (LTAG) of achieving net zero carbon emissions by 2050.  MADB outlines strategic framework which include improvements in aircraft technology, operational improvements, Sustainable Aviation Fuel (SAF), and Market-Based Measures (MBM). It also emphasizes collaboration across action groups such as airline measures, ANSP (Air Navigation Service Provider) measures, and airport measures, and further align these efforts with both national and international sustainability targets.

6. Aviation Safety and Security Commitment

Among the core initiatives to ensure the highest levels of safety performance and compliance with international standards is the digitalisation of safety oversight processes, which is designed to improve operational efficiency, data accuracy, and real-time monitoring capabilities. Through the implementation of digital tools and platforms, CAAM is better equipped to conduct surveillance, analyse safety trends, and respond promptly to emerging safety risks.

In 2024, CAAM advanced its regional engagement by contributing to the development and implementation of the Oversight Reporting Resolution (ORR) software under the ICAO Cooperative Aviation Security Programme – Asia Pacific (CASP-AP). This platform modernises aviation security oversight through real-time reporting, automated inspections, root cause analysis, and compliance tracking. Replacing outdated manual systems, the ORR software delivers enhanced dashboards, detailed audit reports, and secure record management tailored to regulatory needs. Several CASP-AP member states have since adopted the software, marking a significant step forward in strengthening regional aviation security collaboration.

CAAM has made significant strides in regulating and facilitating the growth of Unmanned Aircraft System (UAS) operations in the country. Between 2020 and March 2025, a total of 3,237 Authorisation to Fly (ATF) permits were issued, covering diverse operations such as aerial mapping, infrastructure inspections, drone light shows, search and rescue missions, and UAS training. CAAM has also approved six Remote Pilot Training Organisations (RPTOs), issuing a total of 4,093 remote pilot certificates. In the agricultural sector, three companies have been certified under the UAS Agricultural Work Certificate scheme, with operations spanning 125,000 hectares of paddy fields and palm oil plantations. Furthermore, CAAM has approved 28 Special UAS Projects involving seven companies, including advanced operations such as Beyond Visual Line of Sight (BVLOS) inspections, nested UAS deployments, drone delivery services, and research and development initiatives.

CAAM has also successfully organised the Malaysia Aviation Safety Seminar (MASS) for two consecutive years in 2023 and 2024. This event served as an exclusive platform to advance aviation safety across Asia and globally. Both events were held in Kuala Lumpur and brought together delegates from around the world to engage in high-level discussions on critical issues impacting aviation safety. Esteemed speakers represented leading organisations including the Federal Aviation Administration (FAA), The Boeing Company, AirNav Indonesia, Embraer, Garuda Indonesia, NAICO Malaysia, DFS Aviation Services and the Flight Safety Foundation. The seminar featured cutting-edge insights, best practices, and innovative strategies aimed at fostering sustainability, safety, and resilience within the aviation sector.

7. Women in Aviation

​Malaysia Aviation Group (MAG) continues to demonstrate strong leadership in promoting gender equality within the aviation sector. Women make up 46% of MAG's total workforce, a notable achievement in an industry where female representation remains limited in many areas. This includes women in technical roles, operational functions, and senior leadership positions, highlighting MAG's commitment to fostering an inclusive workplace that values diversity at all levels.

To support women's career advancement, MAG has introduced a range of targeted initiatives such as structured mentorship programmes, leadership development workshops, and knowledge-sharing platforms. These efforts are designed to empower women across the Group, enabling them to reach their full potential and take on larger roles within the organization.

INFRASTRUCTURE & DIGITALIZATION

1. Sultan Abdul Aziz Shah Airport, Subang (LTSAAS) as a Leading Aerospace and Aviation Hub

​The resumption of jet operations at Subang Airport on 1 August 2024 as part of a critical component of the Subang Airport Regeneration Plan (SARP) is anticipated to significantly enhance the airport's capability. Upon the full realization of the SARP by 2030, the airport is expected to experience substantial growth, including increased passenger capacity, expanded connectivity, and economic stimulation. By focusing on business aviation and investing in green technologies, the airport aims to attract corporate travelers, reinforcing its position as a pivotal regional aviation hub.

The development has positioned Malaysia as a Global Aerospace & Aviation Supply Chain Hub. LTSAAS has attracted Major Tier 1 & 2 suppliers for Airbus and Boeing across the various markets. This has positioned the area as a single-source provider for aircraft components, sub-assemblies, and aerospace parts within the global value chain. The presence of global anchors in LTSAAS reinforces Malaysia's value proposition and investors' confidence in the country.

LTSAAS and its surrounding area have created the Impetus for High-Value Industry and Economic Complexity. The ecosystem has multiplied value across the aerostructures and Maintenance, Repair, and Overhaul (MRO) market. Approximately one (1) to two (2) Original Equipment Manufacturer (OEM) anchors are supported by six (6) to eight (8) operators within the product space and supply chain activities.

 2. Penang International Airport Expansion

Penang International Airport (PIA), the gateway into the north of the peninsula, is poised to become the second biggest airport in the country and solidify its status as a key aviation hub in Malaysia, once the RM1.5 billion expansion project is completed in 2028. The main elements of PIA expansion works are a new terminal building that will double the terminal's gross floor area to 115,000sq.m. from the existing 55,000sq.m., a renovation to the existing terminal building, an additional parking apron, a new multi-story car park, and a new Remote Digital Visual Tower (RDVT) that will be the 1st in Malaysia as a substitute to Air Traffic Control (ATC) Tower. The expansion project will increase PIA's capacity from 6.5 million passengers per annum (mppa) to 12 mppa by 2028.

 3. Kota Kinabalu International Airport Expansion​

Kota Kinabalu International Airport (KKIA), with a current handling capacity of 9 million passengers per annum (mppa), is the second busiest airport in Malaysia after Kuala Lumpur International Airport (KLIA). In 2019, KKIA recorded 9.4 mppa, surpassing its existing capacity. Based on projections, passenger traffic at KKIA is expected to reach approximately 12.4 mppa by 2034, with continued growth anticipated in the years ahead. To accommodate this increasing demand, KKIA will undergo a major expansion project to raise its terminal capacity from 9 million to 12 million passengers annually. The project scope includes the construction of a multistorey car park, the addition of seven new aircraft parking bays (aprons), road infrastructure upgrades around the airport, the adoption of green technologies, and the implementation of automation and digitalisation initiatives.

 4. Asia Digital Engineering (ADE)​

Asia Digital Engineering (ADE) stands as Malaysia's leading MRO provider. Headquartered in Sepang, ADE meets the growing demands of the regional aviation market by offering comprehensive services, including line and base maintenance, comprehensive workshop & warehouse capabilities, and cutting-edge digital solutions that enhance aircraft operations.

ADE now operates with a total hangar line capacity of 16, including 2 lines in Senai and 14 lines in KLIA, comprising Hangar A and Hangar B. This expansion allows ADE to accommodate 14 narrow-body aircraft simultaneously or a combination of 2 wide-body and 8 narrow-body aircraft, ensuring flexibility and efficiency in servicing a diverse fleet.

 5. Malaysia Airports Holdings Berhad Digitalisation​

Common Use Passenger Processing System (CUPPS) technology refresh was completed in October 2024. Similarly, Phase 1 of the Self-Service Baggage Drop (SSBD) project, involving six (6) units, was completed in May 2023. The usability of these two systems has been successfully tested and rolled out for passenger use. Currently, the change management process is underway to boost adoption rates. Phase 2 of Self Service Baggage Drop is ongoing and the implementation is scheduled by Dec 2025 at KL International Airport (KLIA) and by Dec 2027 at seven (7) other airports within Malaysia. In addition, the enhancement of the Airport Security System with an AI-based security solution was completed in Q4 2024. In addition, Airport Collaborative Decision Making (A-CDM) Implementation Project in KUL kicked off in April 2022 and the project was completed in January 2024.

CONTRIBUTION

 1. Human Resources Development

​Over 400 aviation personnel worldwide have received training at the ICAO-accredited Malaysia Aviation Academy (MAVA) thanks to Malaysia's Technical Cooperation Program (MTCP). As a complete participant in the ICAO TRAINAIR PLUS Program, Malaysia is keen to develop its aviation training programs in order to foster a cooperative and collaborative environment with regional organizations and the ICAO in order to address the issue of a sustained supply and availability of skilled personnel.

The Civil Aviation Authority of Malaysia (CAAM) also offers a wide range of training programs both online and on-site. These include English Language Proficiency (ELP) courses, Search and Rescue (SAR) training, as well as specialized instruction on the Unmanned Aircraft Systems Traffic Management (UTM) System, catering to the evolving needs of the aviation industry.

Malaysia Airports Holdings Berhad (MAHB) and AirAsia (AA) have collaborated to organize a training session at KL International Airport (KLIA) to three (3) delegates from African countries, as part of the country's dedication and support for developing human capitals within the ICAO states. The course offered is the National Instructors Course, which is related to the security part of the airport and will greatly benefit the delegates and the attendees in learning from outside of one's region. The all inclusive course is fully sponsored by MAHB and AA, including air fares, accommodations, food & beverages and training fee. This course will be conducted in August 2025.

As part of its ongoing commitment to global aviation capacity building and support for ICAO Member States, Malaysia via MAG is extending complimentary access to seven specialised training programmes, reflecting its dedication to inclusivity and industry-wide knowledge-sharing. Together, these programmes deliver over 100 hours of comprehensive training, covering critical areas such as aviation security crisis management, safety management systems, auditing, risk management, dangerous goods, aviation health, and air cargo operations.

​ 2. Financial Contribution​

In support of the ICAO's “No Country Left Behind" initiative, Malaysia is highly committed to continuously assist countries in need to improve aviation safety, capacity building and technical assistance. This is achieved through annual contributions to the ICAO's fund, with a specific focus on supporting ICAO Strategic Plan 2026–2050, implementation Packages (iPacks), aviation security and facilitation, cybersecurity, and the promotion of gender equality.

Malaysia has initiated the establishment of the ICAO Asia and Pacific Capacity Development Fund as part of the country's strategic efforts to support capacity building and assistance programs in the Asia and Pacific region. Malaysia, via the Civil Aviation Authority of Malaysia (CAAM), has committed to contribute to the ICAO Asia and Pacific Capacity Development Fund. This contribution is a key component of Malaysia's ongoing efforts to support technical assistance programs and capacity-building initiatives across the Asia-Pacific region.

3. Contribution and Participation of Malaysia in ICAO

For the term 2022 to 2025, Malaysia has actively contributed to ICAO's work by supporting its key priorities and participating in key committees as below. Through these committees, Malaysia contributes in improving global aviation safety, security, sustainability, and capacity building, while also supporting fair and transparent governance within the organization.

1. 2nd Vice President of ICAO for the 2024 / 2025 session;

2. Coordinator of the APAC Group (July – December 2024);

3. Member of the Small Group (SG) on Gender, Industry Consultative Forum (SGICF) and Lessons Learned During A-41;

4. Serving in Council Committees

1. Air Transport Committee (ATC);

2. Committee on Governance (COG);

3. Joint Support Committee (JSC);

4. Aviation Security Committee (ASC);

5. Climate and Environment Committee (CEC); and

6. Finance Committee (FIC);

Malaysia also serves as an observer on the Committee on Aviation Environmental Protection (CAEP) and actively participates as a member of four working groups: the Fuel Task Group, CORSIA, Airports & Operations, and LTAG Monitoring & Reporting. Through this platform, Malaysia engages in discussions on standards and regulations related to environmental protection in the aviation sector.

 4. Organization of ICAN​

Ministry of Transport Malaysia hosted the International Civil Aviation Organization's (ICAO) 2024 Air Services Negotiation (ICAN) event. ICAN 2024 marked the event's return to Asia after seven years. The negotiations focused on establishing new air routes, expanding capacity, and modernizing existing agreements to meet current market demands. Member States concluded approximately 500 air service agreements following an intensive week of negotiations.

The event demonstrated strong diplomatic momentum with 594 bilateral meetings over five days, bringing together 700 delegates from 83 States. These negotiations will expand global air connectivity and create new opportunities for international air transport.

ACHIEVEMENTS (2022-2025)

1.             Malaysia Aviation Group (MAG)

2022-2024

• Global Brand Award 2024 - Best Airline Brand - South East Asia for Malaysia Airlines Berhad
• Global Brand Award 2024 - Best Cabin Crew – Malaysia for Malaysia Airlines Berhad
• Cellars in The Sky Awards for Malaysia Airlines Berhad
• World Travel Award 2022 for Malaysia Airlines Berhad
• Airline Economics' The Aviation 100 Deals of the Year Awards 2022

2.             AirAsia

 2022- 2025

• 2022-2024: AirAsia Voted World's Best Low-Cost Airline
• 2022: AirAsia awarded Asia's Leading Low-Cost Airline Cabin Crew 2022 & Asia's Leading Low-Cost Airline 2022 at 29th World Travel Awards
• 2022: AirAsia wins World's Leading Low-Cost Airline 2022 & World's Leading Low-Cost Airline Cabin Crew 2022 at 29th World Travel Awards and hosts a party in the sky

• 2023: AirAsia receives Asia's Leading Low-Cost Airline Cabin Crew for seventh consecutive year at World Travel Awards 2023
• 2023: AirAsia wins Asia's Leading Low-Cost Airline for eighth year running at World Travel Awards Asia 2023

1. 2024: AirAsia X bestowed with World's Leading Long-Haul Low-Cost Airline award for the second consecutive year at the prestigious World Travel Awards Grand Final 2024.

• 2025: AirAsia was ranked sixth in AirlineRatings.com's Top 25 Safest Low-Cost Airlines for 2025 from a total of 385 airlines.
• 2025: AirlineRatings.com has recognised the AirAsia group of airlines as the World's Best Low Cost Airline 2025
  
   

3.             Batik Air

• 2023: Trip.com Group – Most Valued Business Partner Award
• 2024: CBD Customer Appreciation Award 2024 Petronas Dagangan Berhad

4.             Malaysia Airports Holding Berhad (MAHB)

2022-2025

• 2025: KL Int. Airport ranked no 8 for World Best Airports 2025: 50 to 60 million passengers in Skytrax 2025
• 2025:KL Int. Airport (KLIA2) ranked no 6 for World's Best Low-Cost Airline Terminals 2025 at Skytrax
• 2024: KL Int. Airport secured a spot among the world's top 10 airports in the Airport Service Quality (ASQ) (40+ million passengers category)
• 2024: KL Int. Airport (KLIA) awarded CAPA Large Airport of the Year 2024 (30+ million passengers category)
• 2024: Langkawi Int. Airport awarded ACI's Airport Service Quality (ASQ) Award for Best Airport in Asia-Pacific (2 to 5 million passengers category)
• 2024: Kota Kinabalu International Airport and Langkawi International Airport achieved ACI's Airport Carbon Accreditation (ACA) Level 1 “Mapping"
• 2024: KL Int. Airport achieved Level 3 ACI Airport Customer Experience Accreditation (ACEA)
• 2023: KL Int. Airport ranked 9th in ACI's Airport Service Quality (ASQ) Award for Best Airport in Asia-Pacific (40+ million passengers category)
• 2023: KL Int. Airport achieved Level 1 and Level 2 ACI Airport Customer Experience Accreditation (ACEA)
• 2022- 2023: Langkawi Int. Airport awarded ACI's Airport Service Quality (ASQ) Award for Best Airport in Asia-Pacific (2 to 5 million passengers category)
• 2022: Green Airports Recognition 2022, Kuala Lumpur International Airport
• 2022: KL Int. Airport awarded ACI's Airport Service Quality (ASQ) Award for Airport with the Most Dedicated Staff and Easiest Airport Journey in Asia-Pacific (40+ million passengers category)
• 2022: KL Int. Airport achieved ACI Airport Carbon Accreditation (ACA) Level 3 “Optimisation"
  
   

5.             Senai Airport Terminal Services Sdn Bhd (SATSSB)

• CAPA Asia Pacific Aviation Awards for Excellence – Asia Pacific Small Airport of The Year Under Category 10 Million Annual Passengers