Kundasang: The Kundasang Tourism and Culture Association has urged the Federal Government to review the 200-litre quota under the BUDI Diesel programme, warning that the current mechanism is placing an increasing financial burden on tourism operators and could undermine the recovery and long-term competitiveness of Sabah’s tourism industry.
Its chairman, Datuk Japiril Suhaimin, said Kundasang, one of Sabah’s premier highland tourism destinations, relies heavily on diesel to sustain daily tourism operations, particularly in rural and mountainous areas where logistics and transportation costs are significantly higher than in Peninsular Malaysia.
He said many tourism operators, including homestays, resorts, hotels, campsites, tour transport providers, recreational operators and other tourism-related businesses, depend on diesel-powered vehicles, generators and machinery to keep their businesses running.
“In Kundasang, diesel is not merely a fuel source—it is an operational necessity,” he said in a statement.
Japiril said the current 200-litre monthly quota under the BUDI Diesel programme is insufficient for operators managing tourist vans, four-wheel-drive vehicles, staff transportation and various operational support services.
“The limited quota forces operators to absorb higher fuel costs, which eventually translate into more expensive tour packages, transportation charges and overall operating expenses,” he said.
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He warned that if the issue remains unresolved, Sabah’s tourism destinations could lose their competitive edge as operating costs continue to rise.
He also expressed concern that higher travel costs could discourage domestic tourism, particularly among Sabahans who frequently visit destinations such as Kundasang.
“A decline in domestic tourist arrivals would affect not only accommodation providers but also small businesses, restaurants, transport operators and local communities whose livelihoods depend on tourism,” he said.
Japiril stressed that any policy with significant economic implications should take into account Sabah’s unique geographical landscape, long travel distances, logistical challenges and higher operational costs.
He called for broader engagement between the Federal Government, the Sabah Government and industry stakeholders before any final decisions are made.
The association also noted that the Ministry of Domestic Trade and Cost of Living (KPDN), which oversees matters related to fuel subsidy implementation, is currently led by Sabah-born minister Datuk Armizan Mohd Ali.
“As a leader who understands Sabah’s unique circumstances, we hope Datuk Armizan will champion the concerns of tourism operators, small businesses and local communities by bringing these issues to the attention of the Federal Government,” he said.
Japiril urged the ministry to review the current BUDI Diesel quota and introduce a more flexible and practical mechanism for genuine tourism operators.
“We need an approach that reflects the realities of operating tourism businesses in Sabah, rather than applying a one-size-fits-all policy,” he said.
At the same time, he respectfully appealed to Chief Minister Datuk Seri Hajiji Noor to raise the matter with Prime Minister Datuk Seri Anwar Ibrahim and seek a more practical solution suited to Sabah’s circumstances.
He warned that without timely intervention, operators may be forced to reduce services, increase package prices, cut jobs or postpone future investments.
“We do not want Sabah’s tourism industry, which is steadily recovering from the COVID-19 pandemic, to face another major setback.”
Japiril emphasised that tourism is one of Sabah’s key economic pillars, generating income, creating employment opportunities and sustaining thousands of families across both urban and rural communities.
“Protecting the tourism industry means protecting Sabah’s economy, safeguarding local businesses and ensuring the continued livelihoods of the people who depend on this sector,” he said.
He expressed hope that both the Federal and Sabah governments would give serious consideration to the matter to ensure Kundasang and Sabah remain competitive, sustainable and attractive tourism destinations.
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