JOHOR BARU: Some 300 operators of mamak restaurants in the state are expected to increase food prices at their premises by at least five per cent starting next year.
State Indian Muslim Entrepreneurs Association secretary Hussein Ibrahim blamed the rising operating costs following the continued increase in raw material prices for the price hike.
Hussein added that compounding the situation is the implementation of the RM1,700 minimum wage starting in February next year.
"We will also need to start contributing foreign workers to the Employees Provident Fund (EPF), which will further increase our operating costs," he said when contacted.
Hussein, however, said the association is adopting a 'wait and see' approach before going ahead with increasing prices at their premises.
" It (the decision to increase the prices) depends on the final decision of our parent association, the Malaysian Muslim Restaurant Operators Association (Presma)," he said.
Hussein added that most mamak restaurants employ more than 60 percent foreign workers.
However, due to the increase in operating costs, Hussein said the restaurant operators may have to reduce their dependency on reliance on foreign workers at their premises.
"For each foreign worker, we have 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.
"This does not include the implementation of the minimum wage of RM1,700 and EPF contributions for them.
"We will need to hire more local workers to reduce operating costs."
He said most restaurant operators are willing to offer a salary of up to RM2,500 per month to local workers, but few are interested.
"Most of the younger generation prefer working in the industrial sector, and only those aged 40 and above are interested in working in restaurants," he said.