PETALING JAYA: A price hike of five percent is expected to be implemented in around 300 mamak eateries in Johor by next year.
Johor Indian Muslim Entrepreneurs Association secretary Hussein Ibrahim confirmed the price hike was triggered by the rising price of raw materials which led to the increase in operational costs.
Harian Metro reported that the increase in operational cost was also due to the new RM1,700 minimum wage implementation, effective from February 2025.
“Additionally, we also need to start contributing foreign workers to the Employees Provident Fund (EPF), which will also increase our operating costs.
“The rise in operating costs is actually due to the continuous increase in raw material prices following the removal of diesel subsidies, which we have had to absorb,” he was quoted as saying.
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However, Hussein said they will “wait and see”, as quoted, before the five percent price hike takes place next year as the final decision to implement the move falls on the parent association, the Malaysian Muslim Restaurant Operators Association (Presma).
He added that most Muslim-Indian or mamak eateries in Malaysia hire over 60% of foreign workers.
Last week, Malaysian Indian Restaurant Owners Association (PRIM) president Datuk J Govindasamy said the new minimum wage announced by the government will result in the price increase of food, estimated between 20% to 30%.
Govindasamy reportedly mentioned the price increase in operational costs has been going on since the implementation of the new minimum wage of RM1,500 in May 2022.
Hussein also said that aside from the rise in operational costs, the dependence on foreign labour may have to be reduced as their salaries result in higher operational costs.
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“For each foreign worker, we need to pay an annual levy of RM2,300 per person, in addition to accommodation and food costs of up to RM500 per person per month, on top of their net salary. This does not yet include the implementation of a minimum wage of RM1,700 and the EPF contributions for them in the future.
“Moving forward, we will need to hire more local workers to reduce our operating costs. We are willing to offer salaries of up to RM2,500 per month to local workers, but unfortunately, there are not many interested.” Hussein was also quoted as saying.
He also remarked that the younger generation prefer to work in the industrial sector and only those aged 40 and above showed more interest in working in a restaurant.
