KUALA LUMPUR, Jan 23 — Requiring travel agencies offering Umrah packages to provide a bank guarantee can protect pilgrims from fraud and financial losses, said Malaysian Association of Tour and Travel Agents (Matta) president Datuk Mohd Khalid Harun.

The guarantee adds a layer of protection for pilgrims, ensuring only financially capable agencies offer packages, safeguarding funds and enabling prompt compensation if problems arise.

“I welcome Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing’s proposal to make bank guarantees mandatory for Umrah agencies. Outbound tour operators are already subject to such requirements under the Tourism Industry Act 1992,” he said at a press conference here yesterday.

He noted that fraud risks have risen as agencies can operate with a licence and collect payments without strict limits, while digital platforms make it easier for unscrupulous operators to misuse pilgrims’ funds.

Mohd Khalid also cautioned the public against assuming that large or well-known agencies are automatically safer, citing cases where established companies faced operational failures. — Bernama