PUTRAJAYA, MALAYSIA March 31, 2026 — The Ministry of Domestic Trade and Cost of Living (KPDN) views seriously the announcement of new ceiling fares for tour buses and vans made by the Malaysian Domestic Tourism Association (MITA) yesterday, warning that any joint price-fixing could constitute cartel elements that harm the market.
Minister Datuk Armizan Mohd Ali said that while the ministry understands the cost implications of rising diesel prices on the tourism industry, all parties must ensure that any actions taken comply with the existing legal framework.
“Any form of agreement, understanding or joint decision by the relevant associations regarding price setting, including the setting of minimum or ceiling fares, is prohibited. It contains elements of a cartel that affects the country’s tourism market,” he said in a statement today.
Yesterday’s MITA press conference, which was also attended by three other associations and bodies, announced the new ceiling fare rates that took immediate effect. The move was described as a short-term initiative to assist operators affected by the diesel price hike, as tour buses and vans no longer receive bulk diesel subsidies since last year. For example, the charter fare from Kuala Lumpur to Ipoh was reported to have increased from approximately RM1,500 to RM1,900.
Armizan stressed that the Malaysia Competition Commission (MyCC) is currently investigating the actions of the involved associations under Section 4(2)(a) of the Competition Act 2010, which prohibits agreements or practices that restrict competition, including joint price determination.
He advised all industry players to exercise caution and avoid any form of price coordination that could violate competition laws.
The KPDN statement was issued following MITA’s press conference on March 30 aimed at easing the burden on domestic tourism operators amid rising operational costs.
KPDN emphasised its commitment to ensuring the market remains competitive and fair, thereby protecting consumer interests and the sustainability of the country’s tourism industry.
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