JOHOR BHARU: Around 300 mamak restaurant operators in Johor are planning to increase food prices by at least five percent starting next year due to rising operating costs, says State Indian Muslim Entrepreneurs Association secretary, Hussein Ibrahim. He attributes the hike to ongoing increases in raw material prices and the upcoming RM1,700 minimum wage implementation in February.
Additionally, the new requirement to contribute to the Employees Provident Fund (EPF) for foreign workers will further elevate costs. “We will have to wait for the final decision from our parent association, the Malaysian Muslim Restaurant Operators Association (Presma), before implementing the price increase,” Hussein noted.
He explained that over 60 percent of employees in most mamak restaurants are foreign workers. With rising costs, operators may have to reduce their reliance on foreign labor. Foreign workers require an annual levy of RM2,300 per person, plus accommodation and food expenses of up to RM500 monthly. This excludes the new minimum wage and EPF contributions.
To offset these costs, restaurant operators are considering hiring more local workers, offering up to RM2,500 per month. However, interest remains low among locals, particularly among younger generations, who tend to favor jobs in the industrial sector, leaving mostly individuals aged 40 and above interested in restaurant work.
