The Malaysian Budget and Business Hotels Association (MyBHA) has urged the government to set clear guidelines requiring civil servants to stay only at licensed premises when claiming hotel allowances.
MyBHA said the tourism, arts and culture ministry should establish a verification system, or a list of registered accommodation providers, to ensure that public funds are used to support the legal hospitality industry when civil servants claim hotel allowances.
“MyBHA fully supports the proposed increase in hotel allowances for civil servants, but this must only be channelled to legal accommodation that is registered and pays taxes,” said MyBHA president Sri Ganesh Michiel.
“The allowance should not be used on unlicensed or illegal operators as this undermines fair competition, encourages black market activities, and exposes guests to safety risks due to the lack of standards and regulatory compliance,” he said in a statement.
He added that such a move would not only protect civil servants’ welfare but also support the country’s economy and reflect the government’s commitment to upholding professionalism and sustainability in the hospitality and tourism sector.
Yesterday, Cuepacs, the civil servants’ union, urged the government to raise hotel allowances, saying current rates are outdated and no longer relevant given rising accommodation costs.
Cuepacs president Adnan Mat said existing claim limits were based on a treasury circular issued about 15 years ago. He added that many government meetings and programmes were held in Putrajaya, where hotel rates are relatively high, especially for civil servants travelling from states such as Terengganu and Kelantan.
