KUALA LUMPUR: Scams involving unlicensed travel agents resulted in losses of over RM2 million last year, said Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing.
He told theSun that a total of 82 cases were reported, with most of the victims being middle-aged individuals earning average incomes.
“The majority of complaints were (related to) scams involving fake haj and umrah pilgrimage packages that targeted Muslims looking to fulfil their religious obligations.”
He said scammers advertise attractive prices to entice potential victims and those who fail to carefully review the terms and conditions before making payments would be unaware if the agent added additional fees.
Tiong said registered travel agents must abide by the Tourism Industry Act 1992 and the Tourism Licensing Vehicle Act 1999, and provide clear written terms and conditions.
“Licences are only granted to businesses that can legitimately operate and deliver services. Convictions under the Act can lead to severe consequences, including suspension, revocation of licences, fines, imprisonment or a combination thereof.”
Tiong said the Ministry of Tourism, Arts and Culture (Motac) is working to improve the current Tour Operating Business and Travel Agency Business guidelines to impose stricter requirements.
“One of our key initiatives is to enhance public awareness through various channels such as brochures, short videos, news and fraud watchlists on the Motac official website and social media platforms.”
He said Motac has established a centralised complaint system, known as the Public Complaints Management System, for people to report fraudulent activities.
“In 2023, we received 400 complaints through the system and 245 entities were listed in the Watchlist of Entities Violating the Tourism Industry Act 1992 on Motac’s website.
“Scams destroy customers confidence in the reliability and security of travel services. Potential travellers may decide not to visit Malaysia due to a lack of trust. The negative impact on Malaysia’s reputation as a secure travel destination is a concern.”
Tiong said the ministry works closely with government agencies, industry associations and law enforcement agencies to exchange information and track fraudulent activities.
“We are collaborating with the Ministry of Domestic Trade and Cost of Living, police, Road Transport Department and others. We also exchange information with travel associations to track and combat fraudulent activities in the tourism sector.
“Recently, Motac partnered with the Companies Commission of Malaysia to impose administrative sanctions on directors and their companies, whose licenses were suspended based on Administrative Sanctions (Functions of the Commission) under Section 17 of the Companies Commission Act Malaysia 2001,” he said.
Malaysian Association of Tour and Travel Agents president Nigel C.T. Wong said it supports stronger actions against unlicensed travel agents.
“We organise Matta Fairs nationwide to check and verify exhibitors, ensuring only legitimate and trustworthy travel agencies participate. This protects consumers when exploring travel options and building trust in the industry,” he said, adding that individuals are encouraged to conduct additional verification of licensed companies by visiting the Motac website before engaging in tourism activities.
