27/03/2026

FRIDAY | MAR 27, 2026

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Malaysian Paper

/thesundaily /

Rising fuel prices unlikely to significantly affect VM2026

Langkawi ferry operator cuts trips to stay afloat

ALOR SETAR: The reduction of ferry service to Langkawi from five to three trips a day, which began yesterday, must be implemented to ensure the continuity of public transport operations so that they continue to survive and are not completely discontinued. Ferry Line Ventures Sdn Bhd (Ferry Line) general manager Dr Baharin Baharom said reducing trips was a necessary step to prevent the Langkawi ferry industry from collapsing following a sudden spike in industrial diesel prices. He said the increase in diesel prices of more than 100% was putting great pressure on operating costs and ferry operators in Langkawi, and the steps taken were necessary to ensure the continuity of the company’s operations. “Some blame ferry operators for the reduction and believe it will affect transport facilities for users, but this perception does not take into account the true reality of the industry. “The ferry fare to Langkawi is among the lowest in Malaysia, at around 88 sen per nautical mile, much lower than the route to Pulau Tioman and Pulau Pangkor which is around RM2 per nautical mile,”he said in a statement yesterday. Baharin said low fares have long been maintained to ensure affordable tourism access, but in the face of increasing operating costs, it has become a major challenge. “This reduction is expected to impact the Langkawi tourism sector. Without the implementation of stabilisation measures such as schedule rationing, fare adjustments or policy support, the Langkawi ferry industry faces the risk of operational closure in the near future.” The media reported that Ferry Line has rearranged its post-Aidilfitri schedule following a 100% surge in industrial diesel prices. This adjustment is necessary to mitigate rising losses currently burdening ferry operators. – Bernama Fitri noted that the overall situation remained calm, with normal cross border movement still taking place. “I still saw quite a number of Malaysians around. Whether they were on longer trips or just moving about casually, I can’t be certain,” he added. He said his own visit was informal and not driven by any urgent needs or concerns over supplies. Malaysians have been advised to defer non-essential travel to southern Thailand amid fuel shortages triggered by panic buying, raising concerns ahead of the Hari Raya Aidilfitri festive period. Malaysia’s consul-general in Songkhla Ahmad Fahmi Ahmad Sarkawi said the advisory is particularly directed at those planning trips to popular destinations such as Hat Yai and Songkhla during the extended holiday weekend.

o Tourist arrivals expected to hold steady although visitors may cut spending and shorten trips, say experts

Ű BY QIRANA NABILLA MOHD RASHIDI newsdesk@thesundaily.com

PETALING JAYA: Rising fuel prices are expected to slightly slow down momentum for the Visit Malaysia 2026 (VM2026) campaign, but the tourism sector is unlikely to be significantly affected. Tourist arrivals are expected to hold steady even as visitors spending declines amid cost pressures, said experts. Universiti Teknologi Mara tourism economics expert Prof Dr Mohd Hafiz Hanafiah said travellers are becoming more price-sensitive, leading many to shorten trips and cut discretionary spending. “However, rising fuel prices are a structural headwind, not a collapse trigger. VMY2026 can still succeed, but I deemed growth may be slower and more cost-sensitive, especially for domestic and regional markets where price elasticity is high. “While arrivals may remain relatively resilient, spending behaviour will adjust downward.” Mohd Hafiz warned of emerging risks if Malaysia’s cost structure rises faster than regional peers, saying that while the impact is currently even across countries, a real competitiveness risk could emerge in the near future. “If Malaysia’s cost structure rises faster, especially in transport and PETALING JAYA: Reports of panic buying in southern Thailand appear to be overstated, with conditions on the ground mostly stable apart from isolated incidents at border areas. Businessman Muhammad Zaini Muhammad Nawawi, 43, who recently travelled to Thailand, said the situation remains under control despite viral claims on social media suggesting widespread shortages and rising prices. “From what I observed, the situation is still normal. The issue that went viral only occurred briefly at the border area, particularly in Betong, when supply lorries were delayed,” he told theSun . Zaini said the congestion at petrol stations in Betong was likely driven by concerns over delayed deliveries, Ű BY IKHWAN ZULKAFLEE newsdesk@thesundaily.com

Ida said tourism sector is likely to adjust rather than contract significantly, with demand gradually shifting towards domestic and regional travel amid rising cost pressures. – ADAM AM IR HAMZAH/THESUN

press time, said the situation remains largely under control despite claims that petrol stations are running out of fuel or temporarily closing. “The confusion seems to stem mainly from diesel issues. As for petrol, so far it is still fine,” he said. Amirul said petrol supply has not posed a significant problem as there has been no cap for tourist to purchase petrol at the momennt. “Tourists may not be fully aware of the limits. But based on what I observed, foreign vehicles are still generally allowed to refuel without much restriction.” He said throughout his trip, he was able to refuel his motorcycle and access food without difficulty, suggesting that essential services remain operational. Amirul also acknowledged that certain locations might face temporary shortages of specific “Fuel rationalisation is necessary, but if poorly timed, it can suppress travel demand indirectly. The solution is phased and targeted subsidies, with emphasis on protecting tourism-critical segments. “Malaysia needs to act fast. Destinations that adapt fastest will capture demand in any scenario, that’s what history tells us.” Putra Business School Assoc Prof Dr Ida Md Yasin said fuel price shocks would push up inflation, increasing travel costs and weighing on tourism demand through more expensive air fares, road transport and overall holiday spending. “This would have a knock-on effect on consumer behaviour, with travellers becoming more cautious. “Higher transport costs could weaken tourism’s multiplier effect, as reduced visitor spending would affect retail, food and beverage, and other related services.” Ida also stressed the importance of supporting domestic tourism, highlighting that Malaysia’s

prompting motorists to queue as a precaution. “In other places, everything is operating as usual. I stopped at several petrol stations, refuelled my vehicle and did not encounter any major problems. Supplies are still available and there was no chaos like what is being portrayed online,” he added. Zaini also dismissed claims of widespread shortages of essential goods, including household items, saying there was no clear evidence of such issues during his visit. He said he received information from contacts in Satun indicating that Malaysian travellers are allowed to refuel without restrictions. “I was informed that Malaysians are permitted to purchase fuel as usual, possibly with some level of prioritisation for tourists.” Amirul Faiz, who is in Thailand at basic materials, we may lose price sensitive segments to Thailand and Indonesia, which already have strong value propositions. “Good news, there will be growth in domestic and short-haul travel among locals. This is consistent during earlier fuel shocks and the pandemic globally.” He added that policy responses should focus on targeted and structural measures rather than broad subsidies. “Support should be directed at tourism-critical segments such as transport operators, while efforts to strengthen domestic tourism campaigns like Cuti-Cuti Malaysia should continue. “The focus must be on resilience, not dependency,” he said. Mohd Hafiz said policymakers must strike a careful balance between managing fuel costs and sustaining tourism growth. “Frankly, it’s not a trade-off but it must be policy alignment. Tourism is a luxury item and we have other necessities.

fuel types. “In some places, certain fuel grades like RON95 may not be available, but alternatives such as RON91 are still being sold.” He also dismissed concerns that Malaysians are being stranded or facing serious difficulties while in Thailand. “So far, I have not seen any cases of Malaysians being stuck there. “The situation is still under control,” he said. Fitri Mohd Ghazali, 50, a businessman from the north, said while he noticed several petrol stations were not operating during his recent trip to Thailand, there were no signs of panic or mass hysteria among the public. “Throughout my journey, I did come across a number of petrol stations that were closed – roughly about six to eight in total,” he said. relatively stable fuel supply and pricing position the sector for a structural adjustment rather than a collapse. “The tourism sector is likely to adjust rather than contract significantly, with demand gradually shifting towards domestic and regional travel amid rising cost pressures.” Taylor’s University research cluster lead for innovative management practices Prof Dr Poon Wai Ching said Malaysia’s tourism sector is expected to remain broadly resilient despite disruptions in Middle Eastern oil and gas supply chains. She said inbound tourism could even increase, particularly from the Middle East and China, as travellers shift towards stable and cost competitive destinations such as Malaysia. “At the same time, outbound tourism is likely to decline, especially to destinations affected by higher fuel costs and supply chain disruptions.”

No shortage of essentials, petrol in Thailand, say M’sian travellers