Press Digest: Higher food, drinks prices on the cards

PETALING JAYA: Food and beverage operators are set to increase their prices after the Chinese New, citing increased operating costs and higher wages following the implementation of the Employer Mandatory Commitment (MEC), which makes employers responsible for the levy on foreign workers.
This means food and drinks businesses, including hawkers, will pass on their increased costs to the consumer.
For now, these operators have to tighten their belts and hope that an anticipated higher business volume in the run-up to the Spring Festival would help offset the increased costs.
Malaysia Selangor, Federal Territory Ku Su Shin Choong Hung Restaurant Association (Ku Su) president told China Press on Tuesday that things are not looking up and its outlets have seen a 20% drop in bookings for lunar year-end feast – a dinner usually hosted by Chinese businesses to treat their workers before they break for the Chinese New Year celebration.
In fact, the whole of last year saw a 20-30% drop in food and drinks business, he said in explaining the reason for restaurant chains and other eateries not increasing their prices for the time being.
He said this is a very challenging time for restaurateurs, as apart from having to absorb the increased operating costs, they have to worry about a drop in business and making losses.
Asked for his plans after the festive period, Lin said he would try to maintain the current pricing but reduce the portions slightly in the short term.
"If the government insists that the MEC should stay and if things don't improve by March, we would be forced to increase our prices."
Meanwhile, the Malaysian Employers Federation (MEF) has urged Prime Minister Datuk Seri Najib Abdul Razak to intervene in the foreign worker levy issue.