MCA has urged the government to review its diesel subsidy policy, warning that the exclusion of tour buses from the Subsidised Diesel Control Scheme (SKDS 2.0) is driving up costs and undermining Malaysia’s tourism competitiveness.
MCA Tourism Bureau chairman Datuk Lawrence Chiew Kai Heng said rising fuel prices, coupled with the lack of subsidies for tour buses, are pushing up travel package costs and placing pressure on the industry.
“Tourism transportation costs are rising sharply, and without targeted support, this will inevitably be passed on to tourists,” he stressed.
Diesel prices in Peninsular Malaysia rose by 50 sen to RM6.02 per litre yesterday, up from RM5.52, amid ongoing global uncertainties and geopolitical tensions.
Chiew said tour buses play a critical role not only in ferrying international visitors but also in supporting domestic tourism, particularly during peak travel periods such as school holidays.
“When transport costs rise, Malaysia risks losing its price competitiveness to regional destinations. This comes at a critical time as the country gears up for Visit Malaysia 2026,” he pointed out.
Chiew further warned that the impact would extend beyond tourism operators, affecting the broader economy.
“Tourism does not operate in isolation. Higher costs will ripple across hospitality, food and beverage, retail and other service sectors,” he emphasised.
Chiew also called for a more balanced approach to policymaking, noting that the industry is often overlooked during downturns.
“When tourism performs well, it is praised. But when it struggles, it is treated like a stepchild. This must change,” he added.
He urged the government to adopt a more pragmatic stance by reassessing subsidy policies to ensure the sector remains competitive.
“Failure to act risks undermining the objectives of Visit Malaysia 2026 and weakening one of the country’s key economic drivers,” he said. ‒ April 3, 2026
Main image: Malay Mail
