Cheap Foreign Labour Helps Keep Salaries Low

Malaysians won’t work for low salaries, and will customers pay more for their food, say restaurant owners, calling for quotas or time to train locals.

(FMT) – Restaurant owners are getting steamed up by a government decision announced today for only Malaysians to be employed as cooks in restaurants from Jan 1.

Human Resources Minister M Kulasegaran was urged to reconsider, or to give restaurant owners at least three years to train Malaysians to fill the job.

One restaurant owner asked if the decison was taken on health grounds, or to create greater employment, saying that other measures should also be taken, such as imposing quotas.

A question was raised on whether the ruling also applied to expatriate chefs at higher-end hotels and restaurants.

The main complaint was that Malaysians were reluctant to work as cooks at the salaries being paid, and that higher salaries would drive up costs and drive away customers.

Ho Su Mong, head of the Malaysia-Singapore Coffee Shop Proprietors’ General Association, said that the minister’s idea “was not proper” as it was difficult to recruit locals to work as cooks.

“Even at a RM3,000 salary, it will be difficult to get cooks. In Johor Bahru, our members are finding it tough. Across the Causeway, cooks can earn S$2,500. For us to compete, we have to pay RM6,000 at least. How can we compete?

“That’s why many Malaysians prefer to work there.”

Delay ruling to train cooks, or have a quota

Ho said the “locals only” ruling may work in Penang as it was limited to hawkers, who mostly ran their own stalls and reaped all the profits from their business.

“But it’s different with restaurants and coffe shops, the proprietors will face problems due to insufficient cooks and I fear those shops closing down.”

Ho also said the government should provide restaurant operators at least three years to train cooks.

“Many restaurants have been training foreign cooks for years and some of them are very good, willing to learn and don’t mind working long hours.”

Ho proposed that the government instead introduce quotas for foreign cooks rather than a blanket ban on them.

He also questioned if the ruling included expatriate chefs in hotels and upmarket restaurants.

Are restaurant customers willing to pay higher prices?

One restaurant owner, who only wanted to be known as Tan, said Kulasegaran should get a better understanding of the situation on the ground before making decisions.

“Locals don’t want to work as cooks in regular eateries because it’s tough work, the pay isn’t very high and it’s not very glamourous like working in a hotel,” said Tan who employs three foreign cooks in his restaurant in Old Klang Road.

“I am the main chef, I pay my foreign cooks RM1,500, well above the minimum wage. I prefer to hire locals but many can’t accept a salary of RM1,500. If I had to pay a local RM2,000 a month, that’s an additional RM1,500 a month excluding Employees’ Provident Fund contributions.”

If cooks were to be paid more, he would have to pass on the costs to his customers, and questioned whether price-sensitive Malaysians could accept that.

He also asked whether the rationale for the ruling arose from concern over health or to create employment.

“If it is health, the government can make it mandatory for all cooks to meet the same requirements, whether it is annual health checks or typhoid shots.

“If it is to ensure sufficient jobs for locals, I think it’s foolish: the issue isn’t that restaurants don’t want to hire locals but that locals don’t want to do these jobs for the salaries restaurants can pay them.”

The human resources ministry announced earlier today that from Jan 1, restaurants would only be allowed to employ Malaysians as cooks, and only Malaysians should be recruited beginning July 1, with restaurant operators given until the end of the year to comply.