PUTRAJAYA: The government should thoroughly examine the effects of the diesel subsidy rationalisation on tour bus operators.
Peninsular Malaysia Tour Bus Operators Association president Steven Chong Sin Wah said the higher diesel price caused by the implementation of targeted subsidies was burdening tour bus operators, causing them to incur more losses.
He said the targeted diesel subsidy scheme should include tour bus operators.
"We are not entirely opposing the government's targeted diesel subsidy move, but consider us as well. The operating cost for tour buses is very high.
"We are also affected by the increase in the Sales and Services Tax, which is taking a toll on our costs. We also have other concerns, such as paying staff salaries.
"If we are included (in the targeted diesel subsidy scheme), it will reduce our burden and operating costs," he told the 'New Straits Times' today.
Transport Minister Anthony Loke had said the government had no plans to include tour bus operators under the targeted diesel subsidy scheme as most of their customers were foreign tourists.
He said operators could not increase prices without informing the Land Public Transport Agency.
Earlier today (June 12), Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the government was considering diesel subsidies for several types of freight transport vehicles.
He said the ministry was reviewing applications and appeals and would expedite them to the Diesel Subsidy Approval Committee.
Chong said the higher diesel price could affect the growth of the tourism sector.
He said tour bus operators could not make much profit due to higher costs.
"Our profit margin is based on the packages we offer. With only five per cent profit due to the increase (in diesel price), we cannot cover the costs.
"How much more do we need to lose? If we are not included, how are we going to compete with our neighbours like Singapore, Thailand and Indonesia?"