Terengganu, 4 May 2026- The Perhentian Island Tourism Operators Association, also known as Persatuan Pengusaha Pelancongan Pulau Perhentian (5P), is urging Kementerian Perdagangan Dalam Negeri dan Kos Sara Hidup (KPDN) to consider granting island operators access to Sistem Kawalan Diesel Bersubsidi (SKDS) and Sistem Kawalan Petrol Bersubsidi (SKPS) for generator use, citing rising fuel costs and the island’s continued reliance on off-grid power.
Malaysia’s tourism sector continues to show strong recovery momentum following the success of Visit Malaysia 2026, with a notable increase in both domestic and international tourist arrivals. More than 200 million domestic tourist trips were recorded in 2025, according to the Department of Statistics Malaysia (DOSM). However, ongoing global energy volatility has led to sustained increases in fuel prices, driving up transportation and operating costs nationwide, placing disproportionate pressure on off-grid destinations such as the Perhentian Islands.
Chairperson Rafizah Munir said operators on the island have seen operating costs rise significantly in recent months. “Fuel is not just another expense for us; it is essential to sustain the livelihood of the people on the island. We rely on generators daily to keep basic operations running. The recent increases are becoming difficult to sustain, and we are reaching a point where businesses may have no choice but to pass on costs to consumers or scale back operations,” she said.
She added that the situation, if left unaddressed, could impact the island’s competitiveness and the broader tourism ecosystem, which supports hundreds of local livelihoods, including hospitality workers, boat operators and small businesses. Given the unique infrastructure limitations on the island, 5P stressed that a targeted policy approach is needed to reflect the realities faced by operators who have no alternative energy source.
The association is calling on KPDN to review the current subsidy framework and consider a special provision or mechanism for island-based operators, and has expressed its willingness to work with the ministry to develop a transparent and practical implementation model.
Sabri Hamdan, owner of Crocodile Rock Villas, also shared his perspective as an operator on the island. “In my view, it is probably quite clear that we still need this subsidy support until the island is fully supplied by the national energy provider,” he said.
“With VM2026 approaching, we hope this matter can be looked into with urgency. Supporting destinations like Perhentian means supporting the communities and businesses that depend on them,” Rafizah said.
The association remains hopeful that the ministry, under YB Minister Datuk Armizan Bin Mohd Ali, will give due consideration to this request in ensuring the sustainability of Malaysia’s tourism industry and the well-being of island communities.
