Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 12): Malaysia Airports Holdings Bhd (MAHB) saw its share price fall as much as 30 sen or 3.8% to an intraday low of RM7.82 today, as the Cabinet agreed to merge Malaysian Aviation Commission (Mavcom) and Civil Aviation Authority of Malaysia (CAAM).

At 4:40pm, MAHB pared some losses to trade at RM7.90, down 22 sen or 2.71%, giving it a market capitalisation of RM13.26 billion.

The counter was the third-largest loser amongst all Bursa securities.

The Ministry of Transport (MoT) issued a statement today saying that the Cabinet has met and agreed to rationalise the supervising bodies of Malaysia's aviation industry by dissolving Mavcom and placing its functions under CAAM.

"The initiative to rationalise the supervising body of civil aviation under one entity does not only optimise financial and human resources, but it also increase the administration efficiency and service quality," MoT said.

This confirms a report from The Edge Financial Daily today quoting sources saying the Cabinet has approved the merger of both authorities.

The move would empower CAAM and regulate the economic and technical aspects of the civil aviation industry, said a source.

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