Malaysia

School closures spell likely doom for 10,200 canteen operators

Association secretary says it’s ‘very disappointing’ that Budget 2021 doesn’t have allocation for these businesses

Updated 5 years ago · Published on 15 Nov 2020 12:00PM

School closures spell likely doom for 10,200 canteen operators
When the MCO was imposed in March, school canteen operators were given a six-month rental exemption. – Wikipedia pic, November 15, 2020

by Rachel Yeoh

GEORGE TOWN – More than 10,000 canteen operators are in a bind following the Education Ministry’s sudden decision on Tuesday to close all schools for the rest of the term.

Already hampered by the conditional movement control order (CMCO), these operators are now faced with imminent shutdown.

“Operators had been preparing for business during the recovery MCO, buying raw materials and such. Now, these items are left to rot,” said Association of School Canteen Operators secretary Siti Normah Desa.

“Even if you use it to cook meals at home, how much of it can you use?

“Budget 2021 is very disappointing, as there is nothing allocated for school canteen operators. I am certain that a lot of operators will not be able to resume business once schools reopen.”

In the first phase of the MCO, canteen operators were given a six-month rental exemption, and the movement curbs took effect when it was nearing the first-term school break.

Siti Normah said the second CMCO was unexpected, leaving operators with little time to prepare.

Recently, opposition leader Datuk Seri Anwar Ibrahim warned that up to 10,000 school canteen operators will be affected, and urged the Education Ministry to immediately address the matter.

Lacking capital to restart

“They won’t have the capital to restart their businesses. As of now, we don’t even know how long this CMCO will go on for, and a lot of their savings have been used up to sustain themselves,” said Siti Normah.

“They are trying to survive by doing food delivery and selling food outside their homes.”

This is not sustainable, she said, adding that whatever income they make will be immediately used for household needs.

The Education Ministry has ordered the closure of all schools for the rest of the term, following the imposition of the CMCO in most states to curb the spread of Covid-19. – Putrajaya Corp pic, November 15, 2020
The Education Ministry has ordered the closure of all schools for the rest of the term, following the imposition of the CMCO in most states to curb the spread of Covid-19. – Putrajaya Corp pic, November 15, 2020

Most canteen operators are from the B40 group, she said.

She expressed concern that many have had to let go of their workers, as money is sometimes not even enough to cover utility bills, what more employee wages.

There is currently a 2% rebate for electricity, but this does not make much of a difference, she said.

“Even the electricity bill for the smallest canteen is between RM300 and RM400. For bigger canteens, the bill can run up to RM1,500 to RM2,000.

“When the canteen is not in operation, we still have to pay the utilities. The corridor lights are on and the refrigerator is still running. Bills have to be paid even when their income is at zero.”

Food quality compromised

Siti Normah is worried that when schools reopen, canteen operators may not be able to buy high-quality ingredients to provide nutritious meals to students.

“We cannot blame the operators if this happens, because they are forced to operate with little to no capital. We (the association) want to help the operators so that they can run their businesses when the CMCO is over.”

Operators are bound to an agreement to sell meals for cheaper, usually below RM3 each.

“I don’t understand why the government cannot take a good look at this situation. The operators don’t have fixed profits, and the profit margin is very slim,” said Siti Normah.

“This is why I urge the government to look into this and help canteen operators.”

There are 10,200 such operators nationwide, serving millions of students. – The Vibes, November 15, 2020

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