KUALA LUMPUR, 16 MARCH 2026 – The Malaysian Association of Tour and Travel Agents (MATTA) is urging the government to consider implementing a temporary fuel subsidy for tourism transport operators following the recent rise in fuel prices. The association warns that the increase could have a significant ripple effect across Malaysia’s tourism industry if immediate support measures are not introduced.
Tourism transport operators play a vital role in facilitating both inbound and domestic travel, forming a key link in the country’s tourism value chain. However, many operators are currently bound by contracts signed months in advance with local and international travel agencies. These agreements were based on earlier fuel prices, leaving operators unable to adjust rates despite the recent surge in operating costs. As a result, many are now facing mounting financial pressure and the risk of substantial losses.
The sharp increase in fuel costs has significantly affected daily operations. For instance, the cost of refuelling a standard tour bus has jumped from approximately RM747 per tank to RM969, reflecting an increase of between 35% and 38%. Without intervention, operators may be forced to raise transportation charges by at least 30% to remain viable—an outcome that could ultimately affect tour pricing and demand.
MATTA President Nigel Wong emphasised that tourism transport providers are essential in ensuring seamless travel experiences for visitors. He noted that many operators are now absorbing increased fuel costs due to fixed contractual rates, placing them under considerable financial strain. While the industry has previously demonstrated resilience—such as adapting to the exclusion from diesel subsidy rationalisation—the current fuel price hike presents a more severe challenge that could impact business sustainability.
MATTA is calling for targeted and temporary fuel subsidies specifically for tourism transport vehicles to help cushion the impact. Such assistance, the association argues, would allow operators to manage rising costs without compromising service quality or financial stability. This support is seen as critical, especially as Malaysia gears up for increased tourist arrivals in the lead-up to Visit Malaysia 2026.
Ensuring the sustainability of tourism transport services is crucial to maintaining Malaysia’s competitiveness as a preferred travel destination. MATTA believes that timely intervention will help stabilise the sector, preserve service standards, and support the broader tourism ecosystem during this challenging period.
As fuel prices continue to rise, MATTA remains committed to working closely with the government and industry stakeholders to safeguard the future of Malaysia’s tourism industry. The association stresses that proactive measures today will be essential in ensuring long-term resilience and growth for the sector.
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