Include licensed tourism transport operators in BUDI Diesel scheme, says Matta

PETALING JAYA: The Malaysian Association of Tour and Travel Agents (Matta) has urged the government to reconsider its decision to exclude licensed tourism transport operators from the BUDI Diesel subsidy programme and introduce a targeted scheme instead.

In a statement, Matta president Nigel Wong said the move would support local businesses, protect jobs and strengthen the tourism industry.

He urged the finance ministry to engage with the tourism, arts and culture ministry and industry stakeholders to explore a targeted, well-regulated subsidy mechanism for licensed operators.

Wong also rejected the finance ministry’s view that subsidising tourism transport operators would only benefit foreign tourists.

“Tourism vehicles serve both Malaysian and international tourists daily.

“Licensed tourism transport operators provide services not only for inbound visitors but also for domestic holidaymakers, school groups, corporate events, incentive travel, religious pilgrimages, educational tours and community programmes,” he said.

Wong said excluding tourism transport operators from the subsidy programme would increase operating costs, forcing operators to raise fares and tour package prices. He said this might force Malaysians to consider using unlicensed service providers.

He warned this could hurt domestic tourism and weaken Malaysia’s competitiveness as the country gears up for Visit Malaysia 2026.

“Higher tourism activity generates a multiplier effect throughout the economy. Increased visitor arrivals and domestic travel create greater business opportunities for hotels, restaurants, attractions, retailers, transport operators and local communities.

“This translates into higher business revenue, more employment opportunities, increased tax collections, greater foreign exchange earnings, and stronger economic growth,” Wong added.

Finance minister II Amir Hamzah Azizan said on Monday that the government’s diesel subsidy scheme would not cover the tourism sector, as it is not entitled to subsidies funded by domestic revenue.

He was responding to a question about cooperatives in Sabah that claimed they were left out despite tourism being one of the state’s main revenue contributors.

Amir said Putrajaya’s priority for the tourism sector was strengthening infrastructure to attract more visitors.