Eating Out In Johor Might Cost You More Starting Next Year
Nearly 300 mamak operators across the state are preparing for a price hike of around 5%.
By Sadho Ram — 12 Nov 2024, 12:27 PM
Diners in Johor may soon face higher food prices at mamak eateries, with nearly 300 Indian Muslim restaurant operators across the state gearing up for a price hike of around 5%, expected to take effect next year
The price adjustment proposal comes in response to rising operational costs, driven by surging raw material prices and an impending change in minimum wage requirements, reported Harian Metro.
Johor State Indian Muslim Entrepreneurs Association secretary Hussien Ibrahim explained that the adjustments are necessary to keep up with ongoing economic pressures on mamak restaurants.
"Approximately 300 Indian Muslim restaurant operators in Johor report that their operational costs are soaring, and the minimum wage implementation next year will only add to these costs," he stated.
The minimum wage will increase from RM1,500 to RM1,700, effective 1 February 2024, which will affect all employers, including mamak restaurant owners, who often employ a majority of foreign workers
Employers will also soon need to start contributing to the Employees Provident Fund (EPF) for foreign workers.
Hussien pointed out that these changes, coupled with the removal of diesel subsidies, are driving up daily business costs.
"The rise in operational costs is largely due to the continuous increase in raw material prices, partly a result of the removal of diesel subsidies, which we have had to absorb," he noted.
Currently, foreign workers make up over 60% of the workforce in these restaurants, according to Hussien, but hiring foreign workers is becoming increasingly costly.
"For each foreign worker, we need to pay an annual levy of RM2,300 per person, along with monthly accommodation and food costs of up to RM500 per person," Hussien explained.
"This is before even accounting for the new minimum wage and EPF contributions."
In an attempt to reduce dependency on foreign labour, Hussien shared that restaurant owners are are willing to offer monthly salaries of up to RM2,500 to attract local talent, although interest remains low.
The association has yet to finalise the price increase, choosing a "wait and see" approach until they receive direction from the Malaysian Muslim Restaurant Owners Association (PRESMA).
However, the potential for cost adjustments is a strong likelihood, and the association's statement suggests that customers should anticipate slight price hikes across many of Johor's popular mamak dining spots.
