KUALA LUMPUR (Oct 21): Demand for air transport is expected to increase by an average of 4.3% annually over the next 20 years due to a rebound in the airline industry, said Transport Minister Anthony Loke.

He said this would create 15.5 million direct job opportunities and contribute US$1.5 trillion (RM6.45 trillion) to the global gross domestic product (GDP) by 2036.

“We expect to see a year-on-year increase of 10.4% in total passenger numbers globally for 2024, as the airline industry has experienced a remarkable rebound, surpassing pre-pandemic air traffic levels.

“Here, in Malaysia, our aviation sector is set to experience a 4% growth in overall passenger movement, driven by fleet expansions and the return of foreign airlines,” he said in his speech when officiating the International Civil Aviation Negotiation (ICAN) 2024 hosted by the International Civil Aviation Organisation (ICAO), here on Monday.

Also present were ICAO president Salvatore Sciacchitano and Transport Ministry secretary general Datuk Jana Santhiran Muniayan.

Loke noted that 8.7 million passengers were recorded in August 2024, marking a robust 12.7% increase from the previous year.

He expects air cargo to register a 6.0% to 6.6% year-on-year growth for 2024, amounting to roughly 20 billion freight tonne kilometres.

“This growth is driven by factors such as the recovery in China, an upturn in the global technology cycle and economic stabilisation,” he said.

Commenting on the new minimum wage announced under Budget 2025, Loke told a media conference after the event that it had no effect on the aviation sector since the sector's minimum wage exceeded the figure.

"In aviation, the minimum wage is already more than RM1,700 because this sector involves a lot of technical work, which requires a skilled and trained workforce.

"At present, the minimum wage is more than RM2,000 for workers in the aviation sector,” he said.

Last Friday (Oct 18), Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2025 in Parliament, said the government had agreed to raise the rate of minimum wage from RM1,500 to RM1,700 per month effective Feb 1, 2025.

Regarding the event, Loke said ICAN 2024 demonstrates Malaysia’s commitment to programmes and initiatives organised by ICAO relating to air connectivity, the growth of air transport and successful bilateral and multilateral negotiations on air services.

He added that the conference was participated by over 700 delegates from 83 ICAO member countries, including Saudi Arabia, Russia, Türkiye and Brunei.

“These negotiations aim to secure new and additional traffic rights while enhancing and establishing Air Services Agreement (ASA) with relevant countries.

“These efforts are expected to generate high travel demands, encouraging both local and international airlines to expand their flight operations to destinations in Malaysia,” he said.

Earlier, Loke, representing Malaysia, signed ASAs with Eswatini (Africa) and Suriname (South America), which will establish air transport and connectivity with both nations.

An agreement on hosting ICAN 2024 was also signed between the Malaysian government, represented by Loke, and ICAO, represented by Sciacchitano.

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