Kindy, daycare operators see fee hikes of up to 20% after new minimum wage

ARCPM president Norsheila Abdullah said the closure of daycare centres would cause caregivers to lose their jobs and limit parents’ access to safe and accessible childcare services. (Envato Elements pic) PETALING JAYA: Private daycare and kindergarten operators expect fees to rise by up to 20% when the new RM2,000 minimum wage kicks in next June and increases operating costs.

Malaysian Association of Kindergartens (PTM) chairman Elvis Gan said rising labour costs, along with higher costs for food, hygiene items and learning materials, would strain operators’ finances and prompt fee revisions.

He said operators’ ability to absorb higher wage costs would depend on the number of children enrolled, fee collections and other operating commitments.

Private daycare fees are currently estimated at RM700 to RM1,000 a month, while private kindergarten fees range from RM500 to RM1,500 a month, depending on location, amenities and service packages.

"For example, a RM300 wage increase for one caregiver equals an added cost of RM100 per baby at a ratio of three babies to one babysitter, RM60 per child at a ratio of 1:5, or RM30 at a ratio of 1:10.

"However, this calculation assumes the stated ratios and excludes employer contributions and other employment costs. It also does not represent the fee increase rate proposed by PTM," Gan said, according to Utusan Malaysia.

Association of Registered Child Care Providers Malaysia (ARCPM) president Norsheila Abdullah said private daycare centres, especially smaller operators, risked shutting down without adequate support to cope with higher costs.

She said the closure of daycare centres would not only cause caregivers to lose their jobs but also limit parents’ access to safe and accessible childcare services.

"Children may be placed at facilities that lack proper training, monitoring or safety standards. These risks need to be prevented through policy before problems occur," she said.

Gan said PTM proposed targeted wage subsidies for eligible registered kindergarten operators, especially during the adjustment period, to help offset higher labour costs.

He said grants for training and safety equipment, along with assistance to secure affordable premises, could help reduce expenses for daycare and kindergarten operators.

"We propose fee assistance for families in need, including parents who cannot benefit from tax relief. Bulk purchases of essential goods and group training with the association can also save costs without affecting caregiver adequacy, nutrition, education quality and children’s safety," he said.

Meanwhile, ARCPM proposed studies on the impact of higher costs on private daycare centres, especially those serving low-income families or operating in areas with few childcare facilities.

Norsheila also proposed dedicated funding for childcare and early childhood development, separate from funding for formal education, saying quality childcare should begin before children enter kindergarten or school.