Operators of Malaysian Indian Muslim restaurants or Mamak restaurants are planning to increase their prices by at least 5% starting next year due to the rise in operational costs.
Specifically, around 300 Mamak restaurant operators in Johor are expected to raise the prices at their premises starting in 2025.
Rising operational costs due to the new minimum wage and increased prices of raw materials
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Harian Metro quoted Johor Indian Muslim Entrepreneurs Association secretary Hussein Ibrahim as saying that the price hike is due to the rise in operational costs as a result of the continuous price increase of raw materials, as well as the implementation of the new RM1,700 minimum wage starting February 2025.
Hussein asserted,
“Approximately 300 Indian Muslim restaurant operators in Johor complained about the increase in operational costs, which will be further exacerbated by the new minimum wage implementation next year.
“Moreover, we also have to provide EPF contributions to foreign workers, which will add to our operational costs.”
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He elaborated that most Mamak restaurants employ more than 60% foreign workers.
Besides that, Hussein also said that restaurant operators have to absorb the costs of raw materials after the abolishment of subsidy diesel blanket subsidies.
However, the association secretary clarified that operators are still waiting to see before implementing the minimum 5% increase in prices, as it depends on its parent association, Presma.
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So, what do you guys think of the Johor Indian Muslim Entrepreneurs Association secretary’s statement? Share your thoughts with us in the comments.
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