The Malaysian Budget and Business Hotels Association (MyBHA) has called on the government to implement clear guidelines mandating that civil servants claim hotel allowances only for stays at licensed accommodations.
The association emphasized that the Ministry of Tourism, Arts and Culture should establish a verification system or a registry of licensed accommodation providers to ensure public funds support the legitimate hospitality industry.
MyBHA president Sri Ganesh Michiel expressed support for the proposed increase in hotel allowances for civil servants but stressed that these funds must be directed exclusively to registered, tax-paying accommodations. “The allowance should not be used on unlicensed or illegal operators, as this undermines fair competition, fuels black market activities, and exposes guests to safety risks due to inadequate standards and regulatory oversight,” he said in a statement.
Michiel highlighted that such measures would safeguard civil servants’ welfare, bolster the national economy, and demonstrate the government’s commitment to professionalism and sustainability in the hospitality and tourism sector.
The call follows a statement on Sunday, September 21, 2025, by Cuepacs, the civil servants’ union, which urged the government to revise hotel allowance rates, citing their obsolescence. Cuepacs president Adnan Mat noted that the current claim limits, set by a treasury circular issued approximately 15 years ago, are outdated and fail to reflect rising accommodation costs. He pointed out that government meetings and programs are frequently held in Putrajaya, where hotel rates are notably high, particularly for civil servants traveling from states like Terengganu and Kelantan.
