Anthony Loke urges Malaysia to take lead in drones, air taxis and emerging aviation sector

KUALA LUMPUR, June 24 — Malaysia must position itself as an active participant in the rapidly emerging low altitude economy (LAE) sector, which could potentially be the new growth engine, Transport Minister Anthony Loke said today.

The sector encompasses drones, unmanned aerial vehicles (UAVs), air taxis and electric vertical take-off and landing (eVTOL) aircraft.

He said Malaysia has a solid base in traditional aviation and aerospace industries, but has not leveraged opportunities for maintenance, repair and overhaul (MRO) and manufacturing in the LAE sector.

“We still manufacture and conduct MRO activities based on standards set by the United States or Europe. But for LAE, the standards and frameworks are being developed globally, and Malaysia must take this opportunity to write our own frameworks and standards,” he said at the inaugural Low Altitude Economy Forum 2026 here today.

Malaysia must initiate its own designs, and not just be a follower. It must, simultaneously, be actively involved in LAE and its ecosystem holistically, since it already has strong engineering capabilities, a growing digital economy, and a strategic location within Asean, he said.

He said there are myriad opportunities in MRO, logistics, tourism, agriculture and advanced technology.

Nonetheless, a clear regulatory framework is the foundation.

“Without guidelines, the sector will not take off, given the need for safety oversight for passengers and cargo,” he said.

The ministry also tasked CAAM to develop a comprehensive regulatory LAE framework as a foundation to support safe airspace integration, operational oversight, industry development, and future mobility solutions, Loke said. — Bernama