Kota Kinabalu: The Sabah Association of Tour and Travel Agents (Satta) said there is still no confirmed date for implementation of the RM250,000 bank guarantee requirement for umrah and outbound operators for licence renewal effective May 15, 2026.
Its Chairman, Dato’ Seri Winston Liaw, said Motac Sabah Assistant Director Mohd Noh Hafifie Mapatoba clarified that there is currently no confirmed implementation date, as the matter is still under discussion.
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“Satta acknowledges that the proposed measure is intended to protect consumers.
“Nevertheless, we are concerned that such a requirement would impose significant financial pressure on small and medium-sized travel operators,” said Liaw, after leading a delegation for talks with Motac.
Satta emphasised that Motac should place stronger focus on combating illegal operators, as fraudulent practices are most commonly associated with these unlicensed entities.
In addition, Satta proposed exploring alternative approaches, such as engaging insurance companies to provide consumer protection instead of requiring agents to place substantial cash deposits with banks.
“We also highlighted that licensed travel agents are already required to provide bank guarantees to IATA for ticketing purposes, which involves a considerable amount of capital being locked in fixed deposits.
“Introducing another mandatory bank guarantee would further strain operators’ cash flow,” said Liaw.
Liaw said Motac has continuously carried out enforcement actions against illegal operators, but such cases are usually reported only in local English and Malay newspapers.
Satta suggested that enforcement cases should also be widely reported in Chinese newspapers and on Chinese social media platforms such as Xiaohongshu (Rednote) to raise awareness among foreign tourists about illegal operations and the legal consequences upon conviction in court.
In addition, Satta proposed the introduction of a price control mechanism that can be legalised and regulated under Sabah law.
“We welcome nominated assemblyman Datuk Roger Chin to work closely with Satta so that such a price control scheme can be implemented legitimately and effectively.
“We requested that Motac consider recognising Satta as a recommending association for the renewal of Motac licences.
“This same request was previously raised during our last dialogue session with Tourism, Culture and Arts Minister Datuk Seri Tiong King Sing,” he said.
Satta urged the State Government to expedite control measures and enforcement actions against the increasing number of foreign illegal operators in Semporna who are soliciting business unlawfully.
“This situation has severely affected the survival of licensed Sabah operators. This is an urgent matter that requires immediate action,” he said.
