Malaysia remains optimistic about the Philippines as a key tourism source market, even as higher fuel surcharges could raise travel costs for Filipino visitors, according to a Malaysian diplomat.

"For the Philippines, I think last year we touched almost 500,000. Of course, we're looking to increase it," Malaysian Ambassador Abdul Malik Melvin Castelino Anthony told reporters in an interview.

"I'm happy to see that Malaysia and the Philippines and, of course, the other ASEAN countries are working hard to increase tourist arrivals from our countries to each other, and from global arrivals," he added.

The ambassador's comments came after the Civil Aeronautics Board (CAB) raised the airline fuel surcharge to Level 14 from Level 13 for the second half of September 2026, as renewed volatility in the Middle East keeps pressure on global oil markets. The surcharge, a per-passenger fee airlines may collect on top of base fares to offset fuel costs, is set by the regulator for defined periods, and carriers decide individually whether to impose it within the prescribed range — so the added cost on a ticket can differ by airline and route.

Under Level 14, airlines may collect an additional P457 to P1,336 per passenger on domestic flights, while the surcharge for international flights ranges from P1,509.08 to P11,220.71. Services linking Manila and Cebu with Kuala Lumpur and other Malaysian cities fall under the international category, which carries the higher per-passenger range.

"We have no choice because this is something that is beyond our control," Mr. Anthony said. "It is basically, you know, on market forces. What we can do, I think, is try to mitigate as much as possible the effect of it."

"I think the government of the Philippines and Malaysia are doing as much as we can to ensure that the prices remain at a certain level that will not impede trade and development," he added.

Data from the International Transport Association showed that jet fuel prices rose 6.1% to $181.46 per barrel in the week ending Sept. 11, up from $171.01 per barrel a week earlier.

Traffic between the two countries has been edging higher. In June, Malaysia recorded a 1.13% year-on-year increase in inbound arrivals from the Philippines, with 299,633 Filipino tourists, up from 296,298 previously. About 59 flights weekly between the two countries offer more than 11,615 seats, according to Tourism Malaysia, connecting Kuala Lumpur, Kota Kinabalu, and other Malaysian destinations with key Philippine destinations such as Manila and Cebu. Those figures track movement in both directions: Malaysia's arrival counts cover Filipino visitors there, while the country's rank in Philippine data reflects Malaysians traveling to the Philippines.

"We look forward to having more travelers from Malaysia coming to the Philippines and vice versa," the ambassador said.

Malaysia ranked as the country's 12th source market in 2025, accounting for 104,989 inbound tourists, or 1.62% of the overall arrival count. How the cost pressures interact with these flows may become clearer as the CAB sets surcharge levels in upcoming review periods and as arrival data for the closing months of the year is released. — Almira Louise S. Martinez

Source: BusinessWorld