At the very least, tour bus operators deserve a minimal diesel subsidy

 

WHEN the government introduced targeted diesel subsidies on June 19, 2024, stage, express and school buses were included. Tour buses were not.

At the time, subsidised diesel cost RM2.15 per litre while unsubsidised diesel stood at RM3.35, a difference of RM1.20 or about 56%. Tour bus operators absorbed the additional cost because fuel prices remained relatively manageable.

That has changed dramatically.

Following the US-Israel military strikes on Iran on Feb 28, 2026, global oil supply was severely disrupted, sending diesel prices sharply higher. Over the past 30 weeks, unsubsidised diesel has averaged RM4.63 per litre, with prices ranging from RM2.99 to a peak of RM6.72 on April 9.

Although prices eased to RM3.97 in early July, they have climbed steadily since then. The latest increase of 25 sen has pushed the price to RM4.92 per litre, and it is likely to exceed RM5.

The government should not simply stand by and watch.

Tour bus operators are not a peripheral industry. They are a vital part of Malaysia’s inbound tourism ecosystem, transporting visitors to destinations across the country and supporting hotels, restaurants, attractions and local businesses.

Malaysia is targeting RM329 bil in tourism receipts under Visit Malaysia 2026 and another RM329 bil for Visit Malaysia 2027.

Those ambitions will not be realised automatically if critical tourism operators are forced to scale back or cease operations because fuel costs have become unsustainable.

Ironically, eligible private diesel vehicle owners can still purchase up to 300 litres of subsidised diesel each month at RM2.10 per litre through the BUDI MADANI Diesel programme using their MyKad.

The subsidy was reduced from RM2.15 to RM2.10 in July 2026, while the monthly quota was increased from 200 litres to 300 litres in September.

These vehicles may be registered under either an individual or a company and include cars, SUVs and pickup trucks.

If such assistance can be extended to private diesel vehicle owners, surely the government can provide licensed tour bus and tour van operators with the same modest allocation of 300 litres a month at RM2.10 per litre.

For large fleet operators, the amount may seem relatively small. But it would provide immediate relief while demonstrating that the government recognises the industry’s contribution to the  economy.

More importantly, it would correct an increasingly difficult imbalance.

Licensed tour bus operators comply with regulations, maintain insurance, meet safety standards and contribute directly to Malaysia’s tourism industry. Yet they are paying full market prices for diesel, while some private diesel vehicle owners continue enjoying subsidised fuel.

That creates the perception that individuals transporting tourists in unlicensed diesel vehicles receive greater support than legitimate operators who have invested in meeting regulatory requirements.

Tourism is often described as one of Malaysia’s key  economic drivers. If that commitment is genuine, then supporting the transport operators who keep visitors moving should form part of that strategy.

The government does not need to introduce a massive new subsidy programme overnight.

A limited allocation of subsidised diesel for licensed tour bus and van operators would be a practical starting point that helps cushion rising operating costs without fundamentally altering the broader targeted subsidy framework.

As Visit Malaysia 2026 gathers momentum, the question is not whether tour bus operators deserve recognition. It is whether Malaysia can afford to overlook one of the industries responsible for turning tourism targets into reality. 

YS Chan is a tourism, transport and training consultant.

The views expressed are solely of the author and do not necessarily reflect those of  MMKtT.

- Focus Malaysia