FOLLOWING the abrupt removal of diesel subsidies on midnight of June 10, concerns have emerged from various economic sectors with regard to an escalation in operational cost.
Notably, tour bus operators alongside farmers and smallholders have sought assistance from the government.
While school and express buses are qualified for diesel subsidies at RM1.88/litre under the Subsidised Diesel Control System (SKDS 1.0), tour bus operators are excluded.
Although Transport Minister Anthony Loke Siew Fook has clarified this distinction, the plight of domestic tourists remains unaddressed.
To the international tourists, the increased costs might be palatable given our shrinking ringgit. But what about domestic tourists? It is hoped that the Minister will take measures to assist this group rather than displaying indifference to the hardships faced by citizens.
With diesel prices skyrocketing to RM3.35/litre, tour bus operators face a dilemma: absorb the spike or pass it on to customers who include local tourists. The potential impact on pricing and tourism dynamics warrants attention from the Transport Ministry (MOT).
What if there are both foreign and local tourists at the same time? Will the prices be differentiated based on nationality? What percentage difference in prices will be imposed? How will the MOT monitor this situation?
According to news reports, the Malaysian Inbound Tourism Association (MITA) claims that tour bus operators could incur additional costs of RM200 to RM250 per day.
If these additional costs are not borne by tourists, tour bus operators may be forced to shut down, thereby crippling the tourism industry which is a vital contributor to our economy.
Recognising the significance of the tourism industry, urgent action is needed to support tour bus operators.
MCA’s proposal by our President Datuk Seri Dr Wee Ka Siong and myself to include tour bus operators under SKDS 1.0 deserves consideration for the industry’s sustainability and our country’s economic competitiveness. – June 12, 2024
Datuk Lawrence Low is MCA’s vice-president.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
