Localise minimum wages according to each state, says Kedah MAH

THE Kedah chapter of the Malaysian Association of Hotels (MAH) hopes the fiscal Budget for next year can localise the national minimum wage ceiling of RM1,500 as some states have lower living costs compared to others.

Chapter chairman Eugene Alan Dass said that in states such as Perlis and Kedah, the RM1,500 minimum wage ceiling is relatively high because the state enjoys lower living costs compared to urbanised states such as Selangor or Penang.

He said that the ceiling wage in low-cost states could even be around RM1,200.

It is generally cheaper to operate hospitality properties in urbanised localities but if the wages are steep, the hotels will struggle, he said.

Therefore, he hopes that the Finance Ministry will come up with a Budget which can alleviate the operating costs of hotels in rural areas.

"If there is no respite to our escalating costs, we have no choice but to consider raising the room tariffs. It makes us uncompetitive as people will ask how come hotels in rural localities cost more than in the Klang Valley."

Dass also hoped that the sales and services taxes (SST) would be lowered from the present six per cent for hotels to entice more domestic tourists to not just patronise the rooms but the food and beverage (F & B) offerings.

Many star-rating hotels offer food and beverage outlets but, many guests prefer to stay in-house but consume food outside due to the steep SST rates in food and beverage outlets, said Dass.

The only time the majority of F & B outlets are full is during breakfast offerings.

Dass also hopes that more focus can be given to assist Kedah in promoting tourism given that it is one state, which has yet to harness the full potential of such a sector.

Next year, the state has launched a "Visit Kedah 2025" campaign with an emphasis on visits to the hinterland districts in the state, which offer many eco-tourism prospects.

In 2019, Kedah recorded 6.5 million tourists and it is a figure the state aspires to replicate after suffering a setback due to the pandemic. - October 18, 2024.