KUALA LUMPUR: Discussions with the Finance Ministry are ongoing to allow travel agencies to provide insurance guarantee as an alternative to bank guarantee, says Datuk Seri Tiong King Sing.
The Tourism, Arts and Culture Minister said he is in talks with the Finance Minister to look into the matter.
“I have been talking to Finance to look into this and allow you to use insurance guarantee. I am still negotiating,” he said during his speech when launching the Malaysian Association of Tour and Travel Agents (MATTA) inaugural MATTA Membership Summit 2026 yesterday.
Tiong said the guarantee approach will not be implemented immediately and 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, with damage often occurring by the time cases became public.
“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 the confidence of the public,” he said.
He also urged MATTA to explain the rationale behind the new measure 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 ordered travel agencies offering umrah packages to put up mandatory bank guarantees after 36 pilgrims were stranded in Madinah because of a company’s failure to provide accommodation and return flights.
He said these bank guarantees would protect pilgrims and ensure timely compensation in cases of fraud, negligence or failures by travel agencies.
