PETALING JAYA: Factory canteen operators are seeking additional subsidies from their companies to overcome rising prices and maintain profitability. Currently, these operators receive subsidies in the form of rent-free spaces and free electricity and water. But they claim that is not enough to ride out the tide of rising food costs.
Canteen service provider Baiduri Jasamas Sdn Bhd’s senior manager Ma’arof Ngah Abu said even with the current subsidies, profits are still way too thin due to the increase in the prices of meat and vegetables.
“As a canteen operator, we are being given subsidies such as waivers on rental and utility bills. But we have been told by our client (the factory management) to sell food at below market price.
“This is next to impossible, due to the rise in the prices of meat and vegetables,” he told theSun.
He said canteen operators had to increase food prices by at least 15% to maintain profitability and suggested the government address this issue with canteen owners as well.
“Certain Malaysia-based Japanese factory owners have been providing additional subsidies to canteen operators.
“For example, Honda Malaysia Sdn Bhd in Alor Gajah, Malacca, has given its canteen free rice, sugar, cordial drinks and dishwashing soap while Penang-based Japanese factories have provided their production workers with a cash subsidy. They receive a subsidy of between RM1 and RM2 a day so that their workers can spend a little more on canteen food.
“Canteen owners should look at these methods to come up with a win-win situation between canteen operators and canteen owners,” he said, adding that they must revise the food prices stated in their contracts to match the current food prices.
Agreeing with him, Brainy Bunch International School founder and chief executive officer Efizah Mokhtar Rasali said she provides free meals to teachers in her school.
“It is part of the perks that our staff receive. We have a central kitchen in the school to feed the children, so it is easy to make food for the teachers as well.
“I was inspired by Google Singapore when I visited the company. It has various amenities and free food. Also, the school can get tax exemption with the free meals and it benefits both the school and the teachers.”
Efizah said other companies should do the same, but if they could not handle the loss of revenue, it is advisable for them to just lower the food prices.
“It may seem bad for the company to be giving out free food, but lowering the food prices should not be a problem,” she said.
Meanwhile, Universiti Utara Malaysia College of Business lecturer Prof Dr Russayani Ismail said it is not good if canteen owners keep providing subsidies to keep prices lower as it creates an economic distortion. The benefits, he said, could also be misused.
“Instead of giving subsidies to the canteen operators, companies can lower the canteen rental if it is being charged. Then the government can supplement the cost incurred by the company.
“It is going to be complicated if the government gives out subsidies directly to canteen operators as food prices change every day. It is also up to the operators to set the prices of their food,” she said, calling on companies to offer a better subsidy mechanism.
Ma’arof said even with current subsidies, profits are still too thin due to the increase in prices of meat and vegetables. – BERNAMAPIX
