Malaysia poised to tap Low Altitude Economy boom, says Anthony Loke

PUTRAJAYA, June 24 — Malaysia is well-positioned to play an active role in developing a vibrant Low Altitude Economy (LAE) ecosystem, as Putrajaya moves to unlock new economic opportunities from drones, advanced air mobility and other emerging aviation technologies.

Transport Minister Anthony Loke said Malaysia possessed a strong foundation for developing a LAE ecosystem, citing the country’s mature aviation industry, strong engineering capabilities, growing digital economy and strategic position within Asean.

“These strengths provide a strong foundation for the development of a vibrant LAE ecosystem,” he said during his speech at the inaugural LAE Forum 2026 organised by the Civil Aviation Authority of Malaysia (CAAM) here.

At present, Loke said Malaysia has already seen some limited applications of the LAE, particularly in agriculture and medical logistics, including crop monitoring and the delivery of medical supplies to rural areas.

“The LAE presents opportunities to enhance logistics and delivery services, strengthen disaster response capabilities, improve agricultural productivity, support infrastructure monitoring and expand access to services in both urban and rural communities.

“These technologies have the potential to make businesses more efficient, public services more responsive and economic opportunities more accessible,” he said.

Most importantly, he said LAE is about creating new economic, engineering, manufacturing and maintenance (MRO) opportunities for Malaysia, while improving the lives of Malaysians.

Therefore, Loke said Malaysia should seize the opportunity to develop its own frameworks and standards, as global regulations and guidelines for LAE are still evolving.

“I would like to see Malaysia to be a country of design and a country of manufacture and not just a country for maintenance and repair for other people’s design, especially for LAE vehicles and applications.

“Everyone must play their part in developing this LAE ecosystem, including government agencies, regulators, industry players, technology developers, investors, academia, research institutions and local authorities,” he said.

As the national civil aviation regulator, Loke said the CAAM has already been tasked with leading the development of Malaysia’s LAE regulatory, operational and governance frameworks.

“We do not want to over-regulate to the point of killing off the industry but at the same time, safety must be taken into account, this balance is important.

“This regulatory framework will provide the necessary foundations to support safe airspace integration, operational oversight, industry development and future mobility solutions,” he said.