Umrah scam: Ministry studying need for RM250k bank guarantee

The Tourism, Arts, and Culture Ministry is reviewing the requirement for umrah companies to put up a bank guarantee of at least RM250,000.

The bank guarantee for large-scale operators will be increased according to the size of their operations.

The ministry announced the move following increasingly serious and frequent cases of consumer fraud.

“It is hoped that the policy, which will be finalised, will be enforced as soon as possible,” it said in a statement today.

The bank guarantee for umrah operating companies is a requirement in the Tourism Industry Regulations under Act 482.

The move aims to ensure that quality services and the welfare of pilgrims are maintained.

“For example, when fraud occurs, funds from this bank guarantee will be used to compensate the affected victims,” the statement read.

The ministry stressed that if companies cannot meet the minimum requirements, it will not hesitate to revoke their licenses immediately without compromise.

It reiterated its commitment to protect the interests of Malaysian umrah pilgrims by imposing strict action against any companies that fail to comply with the requirements and regulations.

“Indeed, the ministry is disappointed that although action has been taken against operators who have failed to comply with the law before, there are still operators who continue to ignore their responsibilities,” the statement read.

It said 135 victims from various backgrounds came to the ministry’s premises in Putrajaya yesterday to complain about operators who failed to manage their umrah trips.

“This shows that this issue cannot be allowed to drag on any longer.”

Trust must be restored

Previously, the ministry held an engagement session with representatives of the Umrah Operators Association, namely the Association of Bumiputera Tour Operators (Bumitra), the Association of Travel and Tourism Agents (Matta), and the Association of Umrah and Hajj Travel Agencies (Papuh).

According to the ministry, the public’s trust in the umrah industry must be restored and operators who are negligent or irresponsible will not be allowed to continue operating.

It also called on all umrah operators to comply with the rules and guidelines, which are not only to safeguard the interests of the public but also to ensure the integrity and credibility of the umrah industry in Malaysia.

- Bernama

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