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THE recent announcement by Finance Minister II Datuk Seri Amir Hamzah  that the tourism sector will remain excluded from the diesel subsidy scheme has sent ripples of deep concern across Sabah’s tourism community.

The Federal Government’s stance is understandable at face value: subsidies are meant primarily to benefit Malaysians, not foreign visitors. 

Yet this “one-size-fits-all” approach overlooks Sabah’s unique reality – and risks inflicting lasting harm on one of our most vital economic pillars.

Unlike many destinations in Peninsular Malaysia, Sabah’s tourism sector is built largely on domestic travel. 

Of the 3.7 million visitors we welcomed in 2025, no fewer than 2.3 million – or 60 per cent – were Malaysians from within Sabah and across the country.

Those arrivals contributed RM8.74 billion in receipts, sustaining tens of thousands of jobs in transport, hospitality, handicrafts, agriculture and rural communities.

When costs rise, it is Malaysian families, holidaymakers and workers who feel the impact first – not just overseas tourists.

Sabah’s vast terrain makes this burden heavier still. Our key attractions – from highland retreats to interior villages, remote reserves and island paradises – often lie far from main towns. 

Most can only be reached by diesel-powered buses, ferries, workboats or four-wheel drives.

There are no railways, no mass transit and rarely any cheaper fuel alternative.

For these operators, diesel is not a luxury – it is the lifeline that keeps services running.

Industry estimates point to transport costs jumping between 5 per cent and 15 per cent, depending on distance and terrain.

Because tour packages are priced and booked up to a year ahead, businesses cannot simply pass these extra charges on immediately. 

Many will face squeezed margins, cancelled contracts or reduced services.

Worse still, higher prices will make Sabah less affordable for ordinary Malaysians travelling home or taking a break — at exactly the time we should be encouraging more people to discover our state.

We are not asking for special treatment — we ask for fair treatment that sees Sabah as it truly is.

Instead of fully excluding tourism transport, the Government should consider:

• A targeted subsidy scheme for licensed tourism transport serving rural, island and remote sites

• Recognising that six in ten visitors are Malaysian, aligning closely with subsidy goals

• Reviewing the current capped diesel allocation that already restricts operations

• Distinguishing between large international resort operators and small rural service providers

While we press for policy fairness, our industry must do its part too. Operators can ease pressure by:

• Consolidating trips and boosting vehicle load factors

• Expanding shared “seat-in-coach” and shared boat transfers

• Coordinating schedules and sharing resources across operators

• Prioritising group travel and MICE segments for better efficiency

But improved efficiency alone can never fully cancel out steep, permanent rises in core operating costs.

Supporting Sabah’s tourism transport is not hand-outs to business — it is protecting livelihoods, keeping rural economies alive and safeguarding a major contributor to national revenue.

Tourism built Sabah’s global reputation. It brings Malaysians together and puts food on tables from Tawau to Kudat. Surely a sector that delivers so much deserves to be seen clearly — not through the same lens used for every other part of the country.

We urge the Federal Government to look again. 

Extend targeted diesel subsidy support to Sabah’s tourism transport sector. 

It is the smart, fair and forward-looking thing to do.

Datuk Tan Kok Liang

The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: [email protected]