MATTA calls on the government to reconsider excluding licensed tourism transport operators from the diesel subsidy, warning of higher costs for Malaysians.
KUALA LUMPUR: The Malaysian Association of Tour and Travel Agents (MATTA) has urged the government to reconsider its decision to exclude licensed tourism transport operators from the diesel subsidy programme, saying the move would not only affect the tourism industry but also Malaysians who rely on such services.
MATTA president Nigel Wong disputed the recent characterisation by the Finance Minister II, Datuk Seri Amir Hamzah Azizan, that diesel subsidies for tourism transport operators would only benefit foreign tourists, saying licensed tourism vehicles serve both domestic and international travellers.
He said tourism transport operators provide services for domestic holidaymakers, school groups, corporate events, incentive travel, religious pilgrimages, educational tours and community programmes.
“It is therefore incorrect to assume that diesel subsidies for tourism transport operators would benefit only foreign tourists.
“To say this subsidy only helps foreigners ignores the reality of how our tourism transport industry operates. This decision, if left unchanged, will raise fares for Malaysians and may even force them to consider utilising unlicensed service providers,” he said in a statement today.
The removal of diesel subsidies would directly increase operating costs for tourism transport operators, with the additional costs inevitably passed on through higher fares and more expensive travel packages for both Malaysians and international visitors.
He said the move could undermine the affordability that drives domestic tourism and inbound arrivals as Malaysia accelerates its Visit Malaysia 2026 (VM2026) campaign.
More affordable tourism services would encourage Malaysians to explore destinations within the country while enhancing Malaysia’s appeal to international visitors, generating multiplier effects across hotels, restaurants, attractions, retailers, transport operators and local communities.
He added that the long-term economic benefits generated by stronger tourism activity could potentially outweigh the cost of providing targeted diesel subsidies to licensed tourism transport operators.
Meanwhile, MATTA called on the Finance Ministry (MoF) to reconsider the exclusion of licensed tourism transport operators from the diesel subsidy programme, engage with the Ministry of Tourism, Arts and Culture (MOTAC) and industry stakeholders to develop a targeted and well-governed subsidy mechanism, and recognise tourism transport as a strategic enabler of domestic mobility and the tourism economy in support of VM2026.
The association said supporting licensed tourism transport operators should be viewed as an investment in Malaysia’s economic growth, employment and long-term competitiveness rather than merely a cost.
MATTA’s statement follows MoF’s recent decision to exclude tourism transport vehicles from the diesel subsidy programme, a move the association said was based on the view that extending the subsidy to tourism transport operators would primarily benefit foreign tourists.
