Malaysia

Thank you for time extension, now allow dine-ins, plead eatery owners

Associations say opening to 10pm does little to cover high operating costs

Updated 4 years ago · Published on 01 Jul 2021 7:00AM

Thank you for time extension, now allow dine-ins, plead eatery owners
Restaurants have already seen an 80% average drop in sales since the no dine-in rule was imposed as part of Covid-19 lockdown restrictions, says Primas. – SADIQ ASYRAF/The Vibes pic, July 1, 2021

by Amar Shah Mohsen

KUALA LUMPUR – The government’s decision to extend the operating hours of eateries to 10pm will be convenient for the public, but will do little to help restaurant operators survive the pandemic. 
 
They said the two-hour extension will only likely lead to a minimal revenue increase, poor compensation for businesses that have already seen an average 80% drop in sales since the no dine-in rule was imposed as part of lockdown restrictions. 

Instead, they urged the government to consider allowing dine-ins with strict standard operating procedures (SOPs), such as only two customers per table, in place.
 
“One month is a month too long for us; we have gone through enough suffering,” Malaysian Indian Restaurant Owners Association (Primas) president J. Suresh told The Vibes.

“In the public’s point of view, this (time extension) is good. At least they don’t have to rush, or even risk missing their dinners. But will it help us restaurants survive? Definitely not.” 

The two-hour extension of operating hours for eateries will only likely lead to a minimal revenue increase, if any, says Primas. – SADIQ ASYRAF/The Vibes pic, July 1, 2021
The two-hour extension of operating hours for eateries will only likely lead to a minimal revenue increase, if any, says Primas. – SADIQ ASYRAF/The Vibes pic, July 1, 2021

Suresh said under the current restrictions, restaurants are only making a fraction of their normal sales, which is insufficient to cover their operational costs.

Allowing dine-in with a limited capacity, he said, will at least help operators break even.

“We are not even getting rental waivers for our premises. If the government can allow people to eat in restaurants, then, at least, we will be able to cover operational costs. At this moment, I think we will all be happy if that happens,” he said.

Senior Minister (Security) Datuk Seri Ismail Sabri Yaakob had announced on Sunday that eateries are allowed to operate from 6am to 10pm beginning Monday, although it remains only for takeaway and delivery services.

Under the current SOPs, dining-in will only be allowed once the country enters Phase 3 of the National Recovery Plan, which is only expected to start in September. Malaysia is currently still under Phase 1 of the exit plan. 
 
Turning to loan sharks

Malaysian Muslim Restaurant Owners Association (Presma) secretary-general Habebur Rahman Shahul Hameed also called for dine-ins to be reinstated with the two-person per table limit. 

“Imagine, we have to pay our rentals, workers’ accommodation, their food, salaries and utility bills, among others, and now, we make only a fraction of our usual income. Tell me, how is this enough?” he told The Vibes.

About 1,500 restaurants have closed down since the pandemic started last year, says Presma. – SADIQ ASYRAF/The Vibes pic, July 1, 2021
About 1,500 restaurants have closed down since the pandemic started last year, says Presma. – SADIQ ASYRAF/The Vibes pic, July 1, 2021

Habebur Rahman said the lack of a blanket moratorium and banks' strict loan approval processes have only made matters worse for many of the association’s more than 12,000 members. 

To highlight their desperation, Habebur Rahman said about 1,500 restaurants have closed down since the pandemic started last year, while a number of owners have expressed their intention to borrow from loan sharks to keep their businesses afloat. 

“We tried getting loans from banks, but most are rejected because they feel we are incapable of repaying, going by our losses in the past few months. How do you expect us to make profits with all the restrictions in place? 

“All we are asking now is for the government to relax loan conditions. Give us a one-off RM100,000 grant to survive in this challenging period,” he said.

Habebur Rahman said the association has written to the government on several occasions seeking aid, but to no avail.

Other than the one-off loan, among its other proposals include a 25% levy discount for the hiring of foreign workers, a blanket loan moratorium, reduction in rentals and deferral of tax payments. – The Vibes, July 1, 2021

Related News

Malaysia / 5d

600 Indian, mamak restaurants, on verge of closure due to lack of workers, claim associations

World / 2mth

Gas shortages push India’s poor back to wood and coal

Food / 6mth

74 eateries from Penang make it to the Michelin food guide

Malaysia / 1y

No compromise on food hygiene, even for reputable eateries

Malaysia / 1y

Kelantan restaurant owners call to differ mandatory halal certification

Malaysia / 1y

Three Penang eateries shut after discovery of rat droppings in kitchen

Spotlight

Malaysia

Former head of a ministry's corporate communications unit acquitted of bribery charge

Malaysia

Two sisters die trapped in Johor house fire as escape routes cut off by flames

Malaysia

NS election speculation intensifies as Aminuddin granted audience with state ruler

Malaysia

Teenager who drove recklessly, causing death remanded for further investigation

Malaysia

Police looking for trio involved in violent armed robbery in Penang (video)

Malaysia

Family of five killed as car crashes into water pipe in Serian

Malaysia

'I was once spat on by a pakcik' — Marina denies fear of contesting Malay-majority seats

Malaysia

Jewellery shop among six premises destroyed in fire (video)

You may be interested

Malaysia

Govt prioritises effective administration over early election talk - Anwar

Malaysia

King calls for people-centred development in KL

Malaysia

Care home worker jailed 36 years and caned for sexual offences against five boys

Malaysia

Cops dismantle 3 international fraud syndicates in Penang, arrest 32 suspects

Malaysia

Police capture wanted organised crime suspect in cross-border operation with India and Thailand

Malaysia

METMalaysia urges calm after tremors felt across Sabah, Sarawak following minor earthquakes

Malaysia

Man charged in Butterworth parang attack case that left victim fearing permanent disability

Malaysia

Ex-employee held over RM83,000 theft of phones, apple watches and cash