KOTA KINABALU: The Sabah government is pushing for the tourism industry to be included in the Subsidised Diesel Control System (SKDS).
State Tourism, Culture and Environment Minister Datuk Jafry Ariffin said an appeal had been made to Putrajaya, namely the Domestic Trade and Cost of Living Ministry.
"We are waiting for their reply," he said Friday (June 26) when asked about calls by industry players for SKDS inclusion.
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The call was for tourism transportation to be recognised as an essential sector, with impending diesel price increases having serious implications for the industry in general and also the state's competitiveness as a destination.
The joint appeal was made by Sabah Tourism Federation (STF) president Tonny Chew, Sabah Tourist Association (STA) chairman Melanie Chu, Sabah Enhanced Travel Innovation Association (Setia) chairman Christina Wahida Kong and Sabah Association of Tour and Travel Agents (Satta) chairman Justin Chong.
The expected increase in diesel prices from RM2.15 to RM4.37 per litre, effective July 1, will hit tourism transportation operators nationwide, they said.
The groups felt it was disappointing that tourism transportation providers, including tour buses, vans and boat operators, have not been included under SKDS.
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"The exclusion of this sector from fuel subsidies places immense financial pressure on operators, many of whom are still recovering from the long-term effects of the Covid-19 pandemic," the associations said in their appeal.
They said the diesel price increase has them in a bind as they have already secured bookings and received payments for trips in July, August and the upcoming November-December school holiday season based on previous fuel costs.
"Many operators are now forced to absorb significant and unplanned increases in fuel expenditure, as these additional costs cannot be retrospectively passed on to customers," the group said.
Unlike Peninsular Malaysia, which already has diversified public transportation systems, Sabah relies almost entirely on road transport, making tour buses and vans essential rather than optional.
"Maintenance, repairs and spare parts are considerably more expensive in Sabah due to logistical constraints, limited supply chains and geographical challenges," the associations said, urging that policy decisions take regional differences into account so that Sabah is not at a structural disadvantage.
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Alternative measures that they proposed include postponing the diesel price adjustment for the tourism sector to allow operators time to revise pricing structures and honour existing bookings.
Alternatively, they proposed a partial subsidy mechanism for licensed tourism transportation providers to help reduce the immediate financial burden on operators.
They said it is important for the industry to be supported during Visit Malaysia Year 2026 and in preparation for Visit Sabah Year 2027, both of which are expected to play a major role in stimulating economic growth through tourism.
Without fuel subsidies for the tourism transportation sector, they said tour package prices will increase, diminishing competitiveness with other regional destinations such as Thailand, Indonesia and Vietnam.
They also feared small and medium-sized tourism businesses might have to shut down.
