JOHOR BARU: The Malaysian Islamic Kindergarten Association (Pertim) and two other groups expect an increase of 20 to 25 per cent in fees for kindergartens and nurseries next year.
They said this follows the increase in minimum wage to RM1,700 per month, as announced by the government, effective Feb 1.
Pertim together with the Johor Education Institution Educators Association, which represent kindergarten operators, along with the Malaysia Association of Registered Early Childhood and Development Educators, which represents nursery operators, have confirmed fee increases among approximately 4,500 members due to "rising operational costs."
Pertim honorary advisor Zaharah Awang told Berita Harian that 1,000 members nationwide are preparing to raise their service fees due.
He said this is not only due to the rise in salaries for workers, teachers, but also rising costs of raw materials for food, teaching aid, rent and utility bills.
However, she said any fee increase must receive approval through applications submitted to the State Education Department or District Education Office before it comes into force.
"Pertim initially projected a gradual increase in the minimum wage to RM2,000 per month over several years, but our members did not expect the new RM1,700 minimum wage to be enforced as early as next year.
"Notices about next year's fees have been given to parents, but with the announcement of the RM1,700 monthly minimum wage effective in February, Pertim members will have to issue a new notice reflecting fee increases of up to 25 per cent, depending on the kindergarten's location.
"Our 1,000 members, who are also kindergarten operators nationwide, are in a tough spot. They do not want to raise fees but must do so to continue operating the kindergartens."
She said without parents' support in the matter, there is a risk of a kindergarten closing.
"One hundred per cent of a private kindergarten's operational costs depends on the fees paid by parents. Operational costs for kindergartens have increased since the end of the Movement Control Order (at the start of the Covid-19 pandemic). And costs are much more since last year due to rising prices of goods and living costs," she told BH.
During the tabling of the 2025 Budget on Friday, the government said it will increase the minimum wage rate to RM1,700 per month from the current RM1,500, effective Feb 1 next year.
However, Prime Minister Datuk Seri Anwar Ibrahim had also announced a six-month deferment of the RM1,700 minimum wage enforcement for employers with fewer than five employees, effective Aug 1, 2025.
Zaharah said the price of raw materials for food provided to children under the care of kindergartens has risen by more than 60 per cent since last year, and this increased operational costs.
She said the fee increases of between 10 and 25 per cent are merely to help operators sustain their businesses.
"There have been cases where 41 students were withdrawn from one of our member kindergartens by their parents due to a fee increase of less than RM40 per month."
She said monthly fees for private kindergartens for Malay or Muslim students range between RM300 to RM350 as compared to non-Muslim private kindergartens, which charge between RM750 to RM900 per month.
Meanwhille, Johor Education Institution Educators Association chairman Hazman Sapawi said 500 kindergartens in the state are expected to raise fees in line with the minimum wage increase.
"For example, adjusting kindergarten staff salaries, especially teachers, will involve additional costs of RM229.90 per person per month.