One circular stipulates that government departments, agencies and government-linked companies are encouraged to use corporate credit cards to purchase airline tickets as a cost-saving measure, while another circular has raised the credit limit for these credit cards from RM800,000 to RM1.8 million.

Matta deputy president Sheikh Awadh Abdullah said the circulars have seen government bodies and agencies now favour direct purchases from airlines with corporate credit cards, bypassing the use of travel agents.

“These new directives have raised significant concerns among Bumiputera travel agents, who play a crucial role in facilitating ticketing services for government-related visits and official trips of civil servants,” he said at a press conference here today.

Travel agent Ali Abdul Malek said procurement procedures currently require that government departments, agencies and GLCs call at least three to five travel agencies to get a quotation before confirming a purchase.

“What is happening now is they will ask for a quotation from us, inquire about the airlines and the routes we have planned, but never engage our services after that,” he said.

He said he was worried about the future of Bumiputera travel agencies if government departments, agencies and GLCs continue to prioritise direct bookings online.

Matta member Hashif Farid pointed out that the use of corporate credit cards does not always lead to lower costs.

He said direct purchases on websites are subject to price fluctuations which could lead to unpredictable ticket costs, and noted that frequent changes in flight schedules will result in increased ticket prices.

“Travel agents help to mitigate this issue by offering services like access to negotiated rates and additional support for cancellations or changes. This ensures the government’s expenditure is optimised,” he said.

Sheikh Awadh urged the government to reconsider the implementation of the two circulars, saying Matta is open to discussions with the government on the matter.