MATTA VOICES CONCERN OVER EXCLUSION FROM DIESEL SUBSIDY

The Malaysian Association of Tour and Travel Agents (MATTA) has expressed concern over the Government’s decision to exclude tourism transport vehicles from the diesel subsidy programme, warning that the move could increase operating costs and affect both Malaysian travellers and tourism operators. While acknowledging the Government’s efforts towards fiscal responsibility, MATTA believes a broader assessment is needed to understand the role of licensed tourism transport services in supporting the country’s tourism ecosystem.

MATTA President Nigel Wong said the assumption that diesel subsidies for tourism transport operators would only benefit foreign tourists does not reflect the actual usage of these vehicles. He explained that tourism transport services are widely utilised by Malaysians for domestic holidays, school excursions, corporate events, incentive trips, religious pilgrimages, educational tours and community programmes.

According to MATTA, the removal of diesel subsidies could directly increase operational expenses for licensed tourism transport operators. These additional costs are expected to be passed on through higher transportation fares and more expensive travel packages, potentially affecting domestic tourism participation and Malaysia’s attractiveness as a destination for international visitors.

The association highlighted that affordable transportation plays an important role in encouraging Malaysians to explore local destinations while strengthening inbound tourism. With the country preparing for Visit Malaysia 2026, MATTA believes maintaining competitive tourism costs is essential to ensure Malaysia remains an attractive choice compared with neighbouring countries such as Thailand, Indonesia, Vietnam and the Philippines.

The tourism industry also contributes significantly to economic growth through its multiplier effect, benefiting hotels, restaurants, attractions, retailers, transport providers and local communities. MATTA stressed that supporting licensed tourism transport operators should be viewed as an investment that can generate greater economic returns through increased business opportunities, employment growth and tourism-related revenue.

The issue is particularly important for destinations such as Sabah, where extensive road transportation networks are essential due to the state’s geographical size and widely distributed attractions. MATTA cautioned that rising transportation costs could reduce destination competitiveness and discourage both domestic and international travel.

MATTA has called on the Ministry of Finance to reconsider the exclusion of licensed tourism transport operators from the diesel subsidy programme and work together with the Ministry of Tourism, Arts and Culture (MOTAC) and industry stakeholders to establish a targeted and well-regulated support mechanism.

The association believes that supporting tourism transport operators will not only benefit visitors but also strengthen the wider tourism ecosystem, protect local businesses and jobs, and contribute towards Malaysia’s goal of becoming a leading tourism destination in Southeast Asia.