JOHOR BARU, Nov 12 — Around 300 mamak restaurant operators in Johor are planning to increase food prices by at least 5 per cent starting next year due to rising operational costs, according to Hussein Ibrahim, secretary of the Johor Indian Muslim Entrepreneurs Association.

The hike is linked to climbing raw material prices and a new RM1,700 minimum wage policy set for February, he told The New Straits Times (NST) in a report published today.

"We will also need to start contributing foreign workers to the Employees Provident Fund (EPF), which will further increase our operating costs,” Hussein was quoted as saying.

The association is holding off on a final decision, pending approval from the Malaysian Muslim Restaurant Operators Association (Presma), Hussein added.

He also said that with more than 60 per cent of their workforce comprising foreign workers, the new regulations, including a RM2,300 annual levy and up to RM500 in monthly accommodation and food costs per worker, have added financial strain.

To counter rising expenses, Hussein told NST the association may reduce its reliance on foreign workers and hire locally, though few young Malaysians are interested in restaurant work.

"We are willing to offer a salary of up to RM2,500 per month to local workers, but most prefer jobs in the industrial sector,” he said, noting that mainly those aged 40 and above have shown interest.

Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2025, announced that the government had agreed to raise the minimum wage from RM1,500 per month to RM1,700 per month, effective Feb 1, 2025.

Anwar, who is also the Finance Minister, said that the enforcement of the RM1,700 minimum wage for employers with fewer than five employees would be delayed by six months, taking effect from Aug 1, 2025.