Around 100 Northern Malaysia Tour Bus Companies Face Closure

KUALA LUMPUR March 25 — Around 100 tour bus companies in the Northern Zone of Malaysia are warning they could be forced to cease operations as a result of rising diesel prices that have driven operational costs to unprecedented levels, industry representatives said today.

The Chairman of Gabungan Pengusaha Bas Persiaran Zon Utara, Ahmad Ruslan Abdul Latiff, said many operRM4.72 per litre, a figure

“As diesel prices rise, our operational cost has practically doubled, and many of the prices we quoted to customers earlier are now irrelevant. We simply cannot absorb these additional costs,” Ahmad told reporters after a peaceful gathering of bus operators in Alor Setar today.

According to him, the sharp rise in fuel costs has already led to cancellations of about 50 per cent of bookings, including contracts with travel agencies, schools, universities and corporate clients. Many customers have found it difficult to justify the higher prices that would be needed to offset the added expenses.

“Our buses are essential to the tourism ecosystem, especially as Malaysia gears up for Visit Malaysia Year 2026. Yet if this situation continues, we may no longer be able to operate within weeks,” he said.

Industry representatives said diesel fuel is one of their largest expenses, and with the rise in global energy prices, the financial burden has become too heavy for small and medium‑sized operators. Many are already purchasing diesel at market rates without any fleet subsidy, resulting in shrinking profit margins and increasing losses.

The operators have announced plans to submit a memorandum to the Prime Minister and the Ministry of Tourism, Arts and Culture calling for urgent support measures. Their requests include temporary financial assistance and targeted diesel subsidies for registered tour bus operators to help cushion the impact and prevent mass closures.

Economists and transport analysts say that the rapid increase in diesel prices is not only affecting bus operators but could also have a broader impact on Malaysia’s tourism competitiveness and domestic travel costs if left unaddressed. Diesel‑dependent sectors, including logistics and tour services, may pass on higher costs to consumers, ultimately raising overall travel and tourism prices.

The Ministry of Tourism, Arts and Culture has acknowledged the sector’s concerns and is currently in discussions with the Ministry of Finance to consider potential targeted support for affected operators. Measures being considered include temporary financial incentives and structural reforms to strengthen the tourism transport ecosystem.

Industry experts emphasise that while diesel price adjustments are influenced by global oil market movements, immediate support could help sustain smaller operators and prevent job losses in the tourism transport sector. They also noted that long‑term strategies such as vehicle renewal, operational efficiency improvements and targeted regulation will be key to building a more resilient industry.

For now, bus operators in the Northern Zone hope that dialogue with the government can produce meaningful solutions that will prevent closures and support Malaysia’s regional tourism growth as travel demand continues to recover