KOTA KINABALU: Private kindergartens in Sabah have been placed in a precarious position with the implementation of the RM1,500 minimum wage.

       Sabah Kindergarten Association (PTS) president Evelyn Wong the new minimum wage, which became effective May 1 following a short notice on April 28, has caused much concern for many private kindergarten owners.

       Wong said employees working in the city would see a 25% increase in their pay because of the new wage hike which sees their salaries being raised from RM1,200 to RM1,500.

       At the same time, workers outside city areas will have a 36% bump in their wages after their salaries are raised from RM1,100 to RM1,500.

       As such, she said these kindergartens have been left in a vulnerable position due to this sudden increase in wages as many were still in the midst of recovering from the effects of the Covid-19 pandemic for the last two years.

       “Some kindergartens have experienced a drop in student enrolment which also means a drop in income received to sustain and maintain the kindergarten.

       “Private kindergartens in towns or smaller districts collect school fees at a lower rate compared to those in the city areas.

       “The overall fee charged for kindergartens in Sabah compared to those in Peninsular Malaysia are also at least 30% to 40% lower all these years,” Wong said.

       At the same time, she said, private kindergartens can’t increase the school fees as they would like as they were required to obtain approval from the Education Department first.

       In any case, she said kindergarten could only apply to raise the fees once every three years with a maximum of 30% increase from the previously approved rate.

       “Such restrictions at a time like this where kindergartens experience a sudden increase in expenses due to the wage hike but are not able to increase school fees could result in operators having to shut their businesses.

       “It is my hope that the Education Department can consider providing exemptions to kindergartens to increase their fees accordingly,” Wong said.

       She said private kindergartens have played a vital role in providing quality care and education for children for many years now.

       She pointed out that early childhood developing years are seen as an important time for building strong learning foundations for children.

       During these challenging times, she said, many private kindergartens have been forced to shift into survival mode to stay afloat.

       This meant they needed to increase their fees which would in turn affect parents' pockets.

       “I am not sure how private kindergartens in rural areas or even on the outskirts of Kota Kinabalu city will be able to cope as there are parents who face difficulties paying school fees even as low as RM60 per month,” Wong said.

       “It would definitely be helpful if the government can consider giving some wage assistance to private kindergartens to help them go through this adjustment period.

       “Continuing the wage subsidy programme (PSU) would be of great assistance. Even school fee assistance for parents who send their children to schools would help as well,” she added.