Ministry orders mandatory bank guarantee for umrah operators after pilgrims stranded

Tiong stresses that strict and drastic actions will be taken against irresponsible travel agencies offering umrah packages.
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By DayakDaily Team

KUCHING, Jan 8: Minister of Tourism, Arts and Culture Dato Sri Tiong King Sing has directed the immediate implementation of bank guarantee mechanism as a mandatory requirement for tourism agencies offering umrah packages, to ensure pilgrims’ funds are protected at all times and that compensation can be channelled without delay in cases of fraud, negligence, or agency failure.

In a statement posted on his social media on Tuesday (Jan 7), he said the directive follows a recent incident involving 36 Malaysian umrah pilgrims who were stranded in Madinah after Al Aisy Travel & Tours Sdn Bhd allegedly failed to provide accommodation and return flight tickets as promised, despite full payments having been made.

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Describing the incident as serious and unacceptable, Tiong noted that the affected pilgrims, including senior citizens and children, had each paid RM7,600 but were forced to endure financial and emotional distress when the agency neglected its basic responsibilities, leaving them reliant on public donations to purchase return flight tickets.

“This incident once again proves that the implementation of the bank guarantee requirement is not only justified, but increasingly urgent to protect pilgrims and consumers from irresponsible operators while restoring public confidence in the umrah and tourism industry,” he said.

Tiong said MOTAC had announced its intention last year to enforce the bank guarantee requirement under the Tourism Industry Act 1992 (Act 482), particularly targeting umrah package operators due to the recurring nature of such cases.

“This is not a burden on honest operators. Instead, it is a firm measure to build a safe, credible and trustworthy tourism ecosystem,” he stressed.

According to the statement, reports on the Madinah incident were received through the Malaysian Embassy in Riyadh, and all affected pilgrims have since returned safely to Kuala Lumpur International Airport (KLIA) Terminal 2 on Jan 6.

However, Tiong said the fact that such incidents continue to occur highlights systemic weaknesses that must be addressed immediately through stronger regulatory safeguards and enforcement.

Preliminary investigations by MOTAC found that the company’s premises were no longer operational and that several serious violations had been committed under the Tourism Industry Regulations 1992.

Following this, MOTAC conducted searches, recorded statements from the company and the affected pilgrims, and opened an investigation paper. A recommendation to cancel the company’s licence is currently being finalised for consideration by the ministry’s top management.

Tiong reiterated that MOTAC will not compromise with any operator that deceives consumers, neglects pilgrims’ welfare or tarnishes Malaysia’s reputation.

From 2023 to October 2025, he said MOTAC carried out 64 enforcement operations, resulting in the suspension of four travel agency licences and the revocation of two others for breaches of the law.

“However, the continued recurrence of such incidents shows that existing approaches must be tightened and strengthened,” he said.

As such, Tiong urged the public to always verify the licensing status of travel agencies before making payments and to promptly report any misconduct to enable swift enforcement action.

“The welfare of pilgrims and consumers remains MOTAC’s top priority,” he said, adding that firm action will continue to ensure the umrah sector is managed only by operators who are ethical, professional and fully accountable. — DayakDaily

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