Malaysia’s Civil Aviation Authority (CAAM) will develop a regulatory framework for the low-altitude economy, Transport Minister Anthony Loke announced on 17 September 2025 during the agency’s corporate-identity launch in Putrajaya. The move, Loke said, is intended to unlock commercial uses of low-altitude airspace, from logistics drones to air taxis, while ensuring safety and enabling industry growth.
CAAM’s own media release confirming the rebrand under the theme “A Transformation for Safer Skies” notes an expanded mandate following the agency’s merger with the Malaysian Aviation Commission (MAVCOM) on 1 August, which combined technical, economic and consumer functions under one regulator. CAAM and its partners are already preparing concrete steps to integrate Advanced Air Mobility (AAM) into Malaysia’s aviation architecture.
Why the “low-altitude economy” matters
The term low-altitude economy refers to commercial activity using the lower layers of airspace, typically below 1,000 metres, including delivery drones, urban air mobility (UAM)/air taxis, emergency response drones, and entertainment uses such as drone light shows. Loke said Malaysia must pioneer rules to enable these services, but avoid “over-regulation” that would stifle innovation.
Globally, regulators and cities are racing to balance safety, noise, privacy and airspace integration for eVTOLs and high-tempo drone operations. For Malaysia, a clear regulatory pathway seeks to attract investment, enable pilots and operators, and coordinate airspace access for new entrants.
CAAM’s program: ConOps and partnerships
CAAM has announced concrete next steps. In a joint PR Newswire release, CAAM confirmed it will work with Futurise Sdn Bhd to develop an Advanced Air Mobility (AAM) Concept of Operations (ConOps), targeted for publication in the first quarter of 2026. The ConOps will outline operational, safety and integration parameters for eVTOL and related services.
CAAM’s public materials also say the regulator will review outdated processes, reduce red tape, and stage new management appointments to support the expanded remit, including the economic and consumer protection functions transferred from MAVCOM. These structural changes are intended to streamline approvals for innovative operators while maintaining oversight.
What industry stakeholders want
Industry groups and start-ups typically seek:
- Predictable rules for airspace access and operational approvals;
- Regulatory sandboxes to trial services safely;
- Clear certification paths for eVTOL types and remotely piloted systems; and
- Aligned city planning for vertiports, ground infrastructure and charging or refuelling standards.
CAAM’s partnership with Futurise, an organisation already involved in sandboxing and innovation road-mapping, signals a regulatory approach that aims to combine pragmatic trials with formal rulemaking. Observers note that success will depend on timely ConOps delivery, stakeholder engagement and international harmonization with ICAO/IATA guidance.
Risks and caveats
- Timelines are targets. Public materials set the ConOps goal at Q1 2026; experience in other markets shows that ConOps and formal rulemaking often take longer once technical and safety evidence accumulates.
- Operational complexity. Integrating high-volume drone corridors and intermittent eVTOL flights into busy terminal control areas will require robust detect-and-avoid, communications and traffic-management systems. CAAM will need to coordinate with civil-military airspace users and local authorities.
- Economic & equity questions. While urban logistics and air taxis promise new services, regulators must consider noise, privacy, and accessibility to avoid benefits concentrating only in affluent areas. Loke himself stressed the need not to over-regulate while safeguarding safety.
What’s next
- Q1 2026: CAAM / Futurise ConOps target publication (agency target). Stakeholders should expect consultation rounds and sandbox announcements.
- Regulatory drafting: CAAM will translate the ConOps into operational regulations, pilot certification requirements and technical standards. Watch for draft regulation notices in the months after ConOps release.
- Pilot projects/sandboxes: Expect CAAM to authorise trial corridors and limited commercial operations under closely monitored conditions to collect safety and performance data.
