KUALA LUMPUR, Oct 23 — The Malaysian Aviation Commission (Mavcom) said more than 20 million passengers in Malaysia will be able to enjoy lower Passenger Service Charges (PSCs) with the introduction of the Regulated Asset Base (RAB) Framework.
Airports which are likely to charge lower PSCs include Langkawi, Penang, Kota Kinabalu, Kuching, Miri, Sibu, Tawau, Lahad Datu, Kota Bharu and Alor Setar.
Mavcom said it is currently in the final stages of competing the framework, which forms the basis of funding and developing the airport network in Malaysia, in accordance with its statutory responsibility as provided under the Malaysian Aviation Commission Act 2015 [Act 771].
The framework is expected to ensure that adequate funding is available to meet Malaysia’s airport maintenance and development needs; eliminate any need for government subsidy or government expenditure in the airports; and create differentiated PSC rates for groups of airports, depending on their service levels and infrastructure.
It is also expected to reduce PSCs for almost all commercial airports in Malaysia and ensure that airport charges in the country remain among the lowest in the region; institute conditions for more disciplined capital expenditure spending in Malaysia’s airport sector; and enable a level playing field and healthy competition for the airlines sector.
Executive chairman Dr Nungsari Ahmad Radhi said Mavcom will continue to work towards implementing the new PSC rates from Jan 1, 2020 and will make the necessary announcements in due course.
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 has briefed the Prime Minister on the work that the commission has undertaken for the benefit of travelling passengers, and how a clear and transparent funding mechanism is required to ensure enough investments are made in Malaysia’s airports, especially in major airports which require major upgrades.
“The proposed RAB framework can achieve this without imposing any fiscal burden to the government,” he said, adding that the government will be able to enjoy returns in the form of user fees paid by airport operators to the government.
Nungsari estimated that the government would have to incur approximately RM300 million per year in subsidies if the PSC is not properly set, and under-investments in airports will continue.
“With the framework in place, the government will be able to allocate its resources to other pressing needs in the country,” he added. — Bernama
