MATTA says the recent announcement on the end of rationalisation of the diesel subsidy policy and the subsequent price
increase of diesel has had a significant impact on van and tour bus operators and, hence, the tourism industry.
Before this price adjustment, the analysis showed that tour vans and buses consumed substantial amounts of fuel monthly, with costs now rising by 54% due to the new diesel price of RM3.35 per litre. This increase it said has caused a considerable financial burden on the sector, challenging its ability to maintain competitive pricing and deliver high-quality services to tourists, both international and domestic.
Nigel Wong, President of MATTA, emphasized the importance of fuel subsidies in light of the upcoming Year of Visit Malaysia 2026 (VM2026) campaign. He stated, “The Ministry of Tourism, Arts and Culture (MOTAC) aims to attract 35.6 million foreign tourists to Malaysia. Fuel subsidies are crucial to alleviate the financial strain on operators, supporting competitiveness and ensuring the campaign’s success.”
The association is proposing an allocation of 3,000 litres quotas per month per unit vehicle diesel subsidy. This allocation it said would greatly assist in mitigating the financial burden caused by rising diesel prices and ensure the industry remains competitive. Wong added, “We understand the objectives of the Madani Government and we fully support them. However, the industry needs time to adjust, given the contractual obligations that many agents have. A grace period would allow tour operators to meet these existing commitments without immediately bearing the losses from increased fuel costs.”
