Diesel price spike puts tourism sector under pressure

 

A STEEP surge in diesel prices is placing mounting strain on Malaysia’s tourism industry, with rates jumping from RM3.12 to RM5.52 per litre in just weeks. The RM2.40 increase comes at a critical time as the country gears up for the Visit Malaysia 2026 campaign.

Tour bus operators are among the hardest hit, as they remain excluded from subsidised diesel schemes.

“Tour operators are bearing the full brunt of rising fuel costs, with no support extended to them,” said MCA Tourism Bureau chairman Lawrence Chiew Kai Heng, noting that geopolitical tensions in West Asia are further driving cost pressures.

Industry groups have warned that operators are now at risk of shutting down, with calls mounting for urgent government intervention. Without support, the tourism transport segment could face significant contraction.

Chiew pointed out that the sector has historically been vulnerable during crises, often hit first and recovering last, as seen during the COVID-19 pandemic. The current situation, he said, mirrors that pattern, with rising costs and policy gaps compounding the strain.

Despite earlier assurances of a coordinated response involving multiple ministries, there has been no clear timeline or outcome, raising concerns over policy responsiveness.

The stakes are high: Visit Malaysia 2026 targets up to 47 million tourist arrivals and RM97.6 bil in receipts, goals that hinge on affordable and accessible transport.

For context, tourism remains a key economic pillar, contributing 10.5% to GDP and supporting over 2.4 million jobs in 2024. Yet operators are now absorbing up to a 30% increase in operating costs, threatening Malaysia’s position as a competitive destination.

With regional travel expected to rise during upcoming holiday periods, including in Singapore, Indonesia, and Hong Kong, Chiew warned that rising costs could erode Malaysia’s appeal.

He urged the government to include tour bus operators under the subsidised diesel scheme (SKDS 2.0) and provide a clear implementation timeline.

“Immediate action is needed to stabilise the sector and ensure Malaysia remains competitive,” he reiterated. ‒  Focus Malaysia