Tourism, Arts and Culture Minister Tiong King Sing has directed his ministry to hold immediate consultations with the Finance Ministry regarding the impact of rising diesel prices on tourism transport providers.
Tiong confirmed that the ministry is closely monitoring the price surge and its subsequent effect on the tourism transport sector. He acknowledged that the increase has led to a sharp spike in operational costs for operators who rely heavily on diesel.
The Minister noted that this situation could trigger a chain reaction affecting tourist arrival numbers, business operations, and the overall stability of Malaysia’s tourism ecosystem.
Immediate consultations with Finance Ministry
Tiong stated that he has received feedback from relevant associations and stakeholders, prompting the directive for urgent discussions with the Finance Ministry.
These talks will focus on the current situation and consider targeted measures, including temporary support to alleviate short-term pressure partly influenced by developments in the Middle East.
He explained that the government aims to stabilize and upgrade the sector, which serves as a vital pillar of the tourism industry. The objective is not only to help operators navigate the current climate but also to build a more resilient and competitive tourism transport system.
Calls for rational industry dialogue
The Minister urged industry players to maintain close communication with the government and engage in rational, constructive dialogue to address these issues collectively.
Tiong expressed hope that all parties would remain calm and act prudently rather than being driven by emotion. He assured that the government will do its best to balance various interests and find reasonable solutions.
Diesel prices in Peninsular Malaysia have increased by RM1.60 over the past two weeks due to the conflict in the Middle East.
Industry warnings and service reductions
The Malaysian Inbound Tourism Association has warned that transport operators may be forced out of business if the government does not intervene regarding diesel subsidy applications.
Meanwhile, the Malaysian Association of Tour and Travel Agents stated that the price hike could negatively impact Visit Malaysia Year 2026.
In Langkawi, ferry services to the island are expected to be reduced to three trips daily following the Aidilfitri period as a direct result of the increased diesel costs.
