While the Malaysia Daycare Association acknowledged the importance of ensuring its workers receive fair salaries, it said the minimum wage hike would increase their operational costs.

“To maintain the quality of services while ensuring the welfare of child minders and staff, operators of daycare centres will raise their fees accordingly, with a hike of between 15% and 30%.

“This fee adjustment is to help operators face the pressure of higher costs while ensuring children continue to enjoy high-quality and safe childcare services,” its chairman, Simon Ng, said in a statement.

Ng said the group would be engaging the government so that the implementation of the new minimum wage would proceed smoothly in the sector.

Tabling the 2025 budget last Friday, Prime Minister Anwar Ibrahim announced that the government had agreed to raise the minimum wage from RM1,500 to RM1,700 a month, effective Feb 1.

Anwar, who is also the 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.

Yesterday, Berita Harian quoted several groups representing kindergartens and nurseries as saying their fees would increase by about 20% to 25% next year because of the new minimum wage.

However, they said the fee hike must first be approved by the district education office or state education department.