KUALA LUMPUR: Discussions with the Finance Ministry are ongoing to allow travel agencies to use insurance guarantees as an alternative to bank guarantees, says Datuk Seri Tiong King Sing.
The Tourism, Arts and Culture Minister said the move will offer better consumer protection, restore trust and ensure timely compensation in cases of fraud, negligence, or operational failures by travel operators.
“I have been talking to the Finance (Ministry) to help look into this and allow agents to use insurance guarantees,” he said during his speech when launching the inaugural Malaysian Association of Tour and Travel Agents (MATTA) MATTA Membership Summit 2026 at the Sunway Putra Hotel, Kuala Lumpur here Thursday (Jan 21).
Tiong said the move will not be implemented immediately, adding that a timeline will be provided for stakeholders to make the necessary arrangement.
“We are not doing it immediately, we give the timeline until May 15. That is the deadline for you to produce the guarantee to the ministry,” he added.
Tiong said complaints involving umrah travel packages had significantly eroded public trust.
“That is why we are tightening requirements and setting a clear timeline for compliance. This is not to punish legitimate businesses, but we must gain back public confidence.
Tiong said that once travel agents received the letters, all travel agents would be required to comply with the ruling. “Regardless of the type of business, especially outbound travel, they would be required to provide a bank guarantee of RM250,000 to the Ministry.
“Whenever you encounter any problems, we will call your bank guarantee and refund back to whoever involved,” he said.
He also urged MATTA to help explain the rationale behind the new measures to its members, noting that the ministry had faced mounting public anger over perceptions that it had failed to act decisively.
On Jan 7, Tiong had ordered travel agencies offering umrah packages to provide mandatory bank guarantees after 36 pilgrims were stranded in Madinah because of a company’s failure to provide accommodation and return flights.
