Kota Kinabalu: The government is targeting more visitors under Visit Malaysia 2026 and Visit Sabah 2027, but registered tour buses, vans and boats are still required to pay full market prices for diesel, raising concerns over the rising cost of tourism operations.
Universal Eden Holidays Sdn Bhd Department Head Alvin Quek Totu (pic) said tourism transport operators remain excluded from the Subsidised Diesel Control System (SKDS), despite private vehicle owners receiving subsidised diesel.
His call echoes earlier appeals by the Sabah Enhanced Travel Innovation Association (Setia), Sabah Tourism Federation (STF), Sabah Association of Travel and Tour Agents (Satta) and Sabah Tourist Association (STA).
Under the Budi Madani programme, eligible Malaysians receive up to 300 litres of subsidised diesel a month as of September. Owners of approved private pickup trucks and four-wheel-drive vehicles receive an additional 100 litres, bringing the total to 400 litres at RM2.10 per litre. Goods delivery lorries, public buses and taxis are also covered.
Alvin said the Ministry of Finance had justified the exclusion of tourism transport operators on the grounds that the subsidy would largely benefit foreign tourists, despite the scheme being intended for Malaysians.
“This reasoning does not match how tourism fleets are used. Just because these vehicles carry a tourism permit, they are left out of a subsidy scheme that goods delivery lorries, buses and taxis already enjoy,” he said in a statement.
Alvin, who operates a tour and travel fleet in Sabah, said his buses and vans also transport government department personnel, schoolchildren, university students and Malaysian families. On many operating days, he said, there are no foreign tourists on board.
“Tourism transport is not separate from Malaysia’s everyday transport network. It moves the same civil servants, students and Malaysian families that other subsidised vehicles do and it should not be treated less favourably than a private pickup truck.
“If the government is willing to extend 400 litres of subsidised diesel a month to a private individual driving a personal pickup, there is little reason to deny the same ceiling to a licensed commercial vehicle,” he said.
He proposed introducing a dedicated licensed tourism and charter transport category under SKDS, initially in Sabah, covering buses, vans and boats.
Under his proposal, each eligible vehicle would receive a capped allocation of 400 litres of diesel a month at the subsidised rate, with any consumption beyond the limit purchased at market price. He said the arrangement would keep the government’s financial exposure limited and predictable.
To prevent misuse, he proposed requiring operators to hold a valid tourism licence or permit from the Ministry of Tourism, Arts and Culture (Motac), maintain a registered company and ensure their vehicles are registered in the company’s name.
Operators would also be subject to fleet cards, trip logs or GPS tracking, and monthly reporting, with suspension and blacklisting imposed for misuse.
Alvin said the difference between the market price of RM5.27 per litre and the subsidised rate was RM3.17 per litre. Based on a 400-litre monthly allocation, the difference would amount to about RM1,268 per vehicle a month, or approximately RM1.27 million monthly for every 1,000 vehicles.
He also proposed a three-month pilot programme in Sabah, to be reviewed jointly with the Ministry of Domestic Trade and Cost of Living, alongside a separate mechanism for island and interior operators.
“All island operators in Sabah still do not qualify under SKDS,” he said.
He added that tourism operators were struggling to absorb sudden increases in fuel costs because they could not easily pass the additional expenses on to customers.
“Tour bookings are typically committed three to six months in advance, so when diesel prices spike weekly, there is no way to pass the cost on to an overseas agent already quoted a fixed rate,” he said.
Alvin said rising diesel costs were also contributing to higher ground tour prices in Sabah.
“A three-day, two-night Sabah package with ground tours is 35 to 45 per cent more expensive than a comparable Hanoi package at the same hotel category,” he said.
He also highlighted the Sabah government’s efforts to position 2027 as Visit Sabah Year, with a target of four million visitor arrivals this year.
However, he warned that the unresolved diesel subsidy issue could undermine the state’s tourism ambitions by increasing the cost of transporting visitors between attractions.
“The unresolved diesel subsidy for tourism players risks undercutting the very campaign Sabah is counting on, not because the State lacks the attractions, but because the cost of getting visitors from one attraction to the next keeps rising while competitors hold theirs down,” he said.
