Kuala lumpur: The Ministry of Tourism, Arts and Culture (MOTAC) is currently engaging in discussions with the Ministry of Finance (MOF) to explore the possibility of allowing travel agents to utilize insurance guarantees in addition to the existing bank guarantees. This initiative aims to enhance consumer protection and restore trust, following numerous complaints against several Umrah travel operators.
According to BERNAMA News Agency, Tourism Minister Tiong King Sing made this announcement during the Malaysian Association of Tour and Travel Agents (MATTA) Membership Summit 2026. He emphasized that the proposed changes are not immediate, as discussions are still underway. Tiong stated, "I have been talking to the Minister of Finance to look into this and allow travel agents/tour operators to use insurance guarantee."
In a statement issued on January 18, MOTAC revealed that it is reviewing the current requirement for Umrah package operators to provide a minimum bank guarantee of RM250,000. This review is driven by an increase in consumer fraud cases. The proposed framework includes an adjustment of the bank guarantee requirement for large-scale operators, aligning it with their operational scale.
Minister Tiong also called on MATTA to actively communicate the reasoning behind these measures to its members, highlighting that the move is not designed to penalize legitimate businesses. Acknowledging concerns from the industry regarding stricter requirements, he apologized for any inconvenience, explaining that the decision is based on the high volume of complaints received.
The enforcement of the bank guarantee requirement, particularly for outbound travel operators, is aimed at ensuring quick refunds to consumers in the event of issues. Minister Tiong emphasized the importance of maintaining standards and consumer trust within Malaysia's tourism industry, stating that trust is essential for the sector's success and directly influences visitor confidence, repeat visits, and Malaysia's global reputation as a travel destination.