MATTA CRITICISES IATA OVER UNILATERAL REMITTANCE POLICY CHANGES

KUALA LUMPUR, 5 MAY 2026 – The Malaysian Association of Tour and Travel Agents (MATTA) has voiced strong opposition to the International Air Transport Association (IATA) Malaysia’s unilateral decision to implement a new Remittance Frequency alignment for BSP Malaysia (BSP MY), which is scheduled to take effect on 1 June 2026. MATTA described the move as premature and lacking proper consultation with industry stakeholders, particularly accredited travel agencies that will be directly impacted by the changes.

The objection was formally raised during the 26th Agency Programme Joint Council (APJC) Malaysia Meeting held on 4 May 2026, where MATTA rejected the proposed implementation on the grounds that discussions surrounding the matter remain unresolved. According to the association, several counter proposals and key industry concerns have yet to be fully addressed. Despite this, IATA Malaysia reportedly proceeded with the decision based on internal resolutions and directives from its headquarters, a stance MATTA strongly disputes.

MATTA stressed that travel agencies in Malaysia are not members of IATA but operate as IATA-accredited agents under the Passenger Agency Programme. As the national association representing these accredited agents, MATTA said it remains committed to advocating for transparent and consultative engagement on any regulatory or operational matters affecting the travel industry.

Dr. Fazil Khan stated that any policy or procedural changes affecting the financial and operational stability of accredited agents should be developed through a fair and transparent consultation process. He noted that the decision announced by IATA Malaysia did not reflect such an approach and raised concerns over the lack of industry consensus before implementation.

The association further clarified that each travel agency and tour operator accredited under IATA must independently decide whether to comply with the revised remittance frequency requirements. MATTA emphasised that it does not possess the authority to compel agencies to either comply or reject the new framework. As such, the association will not assume responsibility for any consequences or actions taken by IATA against agencies that choose not to adopt the revised requirements.

In response to the issue, MATTA announced plans to escalate the matter to the Passenger Agency Programme Global Joint Council (PAPGJC) for further deliberation. The association hopes this move will help secure a more balanced and equitable resolution for Malaysian-accredited travel agents while ensuring their concerns are properly represented at the global level.

MATTA reaffirmed its commitment to protecting the interests of Malaysia’s travel agency community and said it would continue engaging constructively with relevant stakeholders to ensure industry stability, transparency and fair representation in future policy decisions.