Childcare Centres Closing in KL, Putrajaya and Perak Despite Rising Demand, Raising Urgent Concerns | KiddyNews

Malaysia’s childcare sector is facing escalating pressure as the number of registered childcare centres continues to shrink in several major states, even as demand surges nationwide.

Figures from the Department of Statistics Malaysia (DoSM), reported by The Star, show that licensed childcare centres in Kuala Lumpur, Putrajaya and Perak declined in 2024, even as more parents enrolled their children.

Key Findings

• Kuala Lumpur: centres fell from 218 to 193 (–11%), while enrolment rose 8%.
• Putrajaya: centres dropped to 49, down 21%, while enrolment increased 10%.
• Perak: centres declined from 245 to 194 (–21%), with enrolment up 33%.

These closures come at a time when Malaysia has 2.3 million children aged four and below, and industry players estimate that the country needs at least 40,000 to 50,000 childcare centres to meet demand, far more than the current supply.

Why Centres Are Closing

Industry associations cite costs, staffing shortages and regulatory strain as the main drivers of the decline:

Rising Operating Costs

Expenses for rent, utilities, food, learning materials and salaries continue to climb across states.

Siti Ruzita Ramli, who leads the Selangor and Federal Territory chapter of Persatuan Tadika Islam, said centres are struggling under the combined weight of higher operating expenses and staffing constraints.

“Many centres are finding it harder to maintain quality due to rising rent, salary increments – now at RM1,800 – and higher food and material costs,” she said.

She added that retaining passionate educators has become difficult.

“Workload is heavy and pay remains low. Universities can help by providing ‘place and train’ programmes to reduce wage burdens.”

Shortage of Qualified Caregivers

Sally Ng Chit Peng, president of the Penang Preschool Teachers Association, said operators in Penang are under severe financial strain.

“The cost of living in Penang has increased significantly,” she said. “Low salaries and limited career progression make it difficult to attract and retain caregivers.”

Ng also urged policymakers to allow dual licensing, enabling one building to operate both a taska and tadika.

“Dual licences save space and reduce operating costs,” she said, noting current regulations require the two to operate separately.

Regulatory Pressures Add to the Burden

Strict licensing and safety standards under the Social Welfare Department (JKM) are essential, but they are proving challenging for small operators, said Registered Childcare and Development Association of Malaysia president Norsheila Abdullah.

“Strict regulations are important, but compliance costs and administrative burden are overwhelming smaller centres,” she said.

She proposed several reforms to ease the strain while maintaining quality:

• Streamline federal–state regulations
• Create a shared inspection mechanism
• Simplify JKM online licensing
• Introduce an integrated childcare database

Norsheila warned that if the supply–demand gap continues widening, childcare fees may rise sharply, restricting access for middle- and lower-income families and pushing them toward informal or unregistered childcare, which often lacks safety and quality oversight.

Broader Policy Recommendations

Norsheila called for strong cooperation between federal and state governments to expand childcare access through:

Policy Measures Suggested

• More community-based and workplace childcare centres
• Tax reliefs and rental subsidies for operators
• Use of underutilised public buildings for childcare
• Minimum wage standards for childcare educators, tied to qualifications
• Expanded training via TVET institutions and universities
• Scaled-up fee assistance or childcare vouchers for B40 and M40 families
  
  

A Growing Crisis That Needs Urgent Attention

The decline in licensed childcare centres occurring simultaneously with rising enrolment and population needs signals a critical tipping point for Malaysia’s early childhood sector.

The trends suggest that without structural reforms, childcare may become increasingly unaffordable, inaccessible, and inequitable, limiting early learning opportunities for young children and constraining parents’ ability to work.

Source:

The Star — “Interactive: Childcare centres closing in KL, Putrajaya and Perak despite rising demand”

Thoughtfully adapted by KiddyNews. Keeping parents and educators informed with the latest ECCE developments from Malaysia and beyond.