The Malaysian Association of Tour and Travel Agents (MATTA) has raised concern over the Ministry of Finance’s decision to exclude tourism transport vehicles from the diesel subsidy programme.
MATTA Challenges Finance Minister II Over Tourism Fleet Diesel Subsidy Claims
MATTA disputes the characterisation by Finance Minister II Datuk Seri Amir Hamzah Azizan that diesel subsidies for tourism transport operators would only benefit foreign tourists. The association argues that licensed tourism transport operators serve a broad domestic clientele, including Malaysian holidaymakers, school groups, corporate events, incentive travel, religious pilgrimages, educational tours, and community programmes.
“It is therefore incorrect to assume that diesel subsidies for tourism transport operators would benefit only foreign tourists,” said Nigel Wong, President of MATTA. “To say this subsidy only helps foreigners ignores the reality of how our tourism transport industry operates. This decision, if left unchanged, will raise fares for Malaysians and may even force them to consider utilising unlicensed service providers.”
MATTA said the removal of diesel subsidies will directly increase transport operators’ operating costs, resulting in higher fares and more expensive travel packages. This, according to the association, is particularly damaging for destinations such as Sabah, where tourism relies heavily on road transportation due to the state’s vast geography and dispersed attractions.
For MATTA, the government’s decision to exclude tourism transport vehicles from the diesel subsidy programme is counterproductive to the Visit Malaysia 2026 campaign. “More affordable tourism services would encourage Malaysians to explore destinations within the country rather than travelling abroad, while also enhancing Malaysia’s appeal to international visitors,” the association said.
To address this issue, MATTA has called on the Ministry of Finance to reconsider the exclusion and to engage with the Ministry of Tourism, Arts, and Culture (MOTAC) and industry stakeholders on a targeted subsidy mechanism for licensed operators. It also urged the Ministry of Finance to recognise tourism transport as a strategic enabler of both domestic mobility and the broader tourism economy.
“Tourism should be viewed as an investment in the nation’s economy rather than simply a cost. Supporting tourism transport operators today is an investment in Malaysia’s economic growth, employment, and long-term competitiveness,” MATTA said.
