SHAH ALAM - Parents in Malaysia may have to brace for higher childcare costs next year, as daycare centres are set to raise their fees by 15 to 30 per cent following the government’s decision to increase the minimum wage to RM1,700 per month, effective Feb 1, 2025.
Malaysia Daycare Association president Simon Ng said the wage hike, while beneficial to workers, will significantly impact the operational costs of childcare centres nationwide.
Ng said the increase was likely to result in parents seeking childcare services having to pay higher fees.
"The government's announcement to raise the minimum wage to RM1,700, last week, will certainly have an impact including improving workers' quality of life and further encouraging national economic development.
"Our association fully supports this policy. However, we are also aware of the operational challenges that this policy brings to the childcare industry," he said.
Ng highlighted that the childcare sector, being part of the service industry, relied heavily on the efforts of caregivers and staff who provided essential care to young children.
While he acknowledged the importance of fair wages, Ng emphasised that the wage increase would inevitably drive up the operational costs for daycare centres.
"To maintain the quality of service while ensuring the welfare of caregivers and staff at childcare centres, operators will adjust fees accordingly, with an increase of between 15 per cent and 30 per cent.
"This adjustment is necessary to help them cope with the rising costs and to ensure that children continue to enjoy high-quality and safe care services," he added.
To address the concerns of the industry and facilitate a smooth transition, the association was actively engaging with government agencies, including the Women, Family and Community Development Ministry and the Social Welfare Department.
"Our association is actively strategising constructive communication with the government and hopes to receive feedback from the relevant departments soon.
"We are working towards finding solutions for policy implementation, supporting the necessary measures and ensuring sustainable development for childcare centers across Malaysia," he added.
During the 2025 budget tabling last Friday, Prime Minister Datuk Seri Anwar Ibrahim announced that the government has agreed to raise the minimum wage from RM1,500 to RM1,700 a month, effective Feb 1.
Anwar, who is also Finance Minister said the government agreed to delay the implementation of the new minimum wage for employers with fewer than five employees to Aug 1, 2025.