Childcare and Kindergarten Fees May Rise By Up To 20% As Minimum Wage Increases | KiddyNews

Private childcare centres and kindergartens in Malaysia may raise fees by up to 20% when the new RM2,000 minimum wage takes effect next June, as operators face higher staffing and operating costs.

Malaysian Association of Kindergartens (PTM) chairman Elvis Gan said higher labour costs, alongside rising expenses for food, hygiene products and learning materials, would put pressure on operators and could lead to fee adjustments.

He said the extent to which centres could absorb the increases would depend on enrolment numbers, fee collection and other operating commitments.

Higher Costs Put Pressure On Operators

Private daycare fees currently range from an estimated RM700 to RM1,000 a month, while kindergarten fees range from RM500 to RM1,500, depending on location, facilities and services.

Gan illustrated how wage increases could affect operating expenses. A RM300 increase in a caregiver’s monthly wages would translate into an additional cost of RM100 per baby at a ratio of one caregiver to three babies, RM60 per child at a ratio of one to five, or RM30 per child at a ratio of one to 10.

He clarified that these calculations assume the stated caregiver-to-child ratios and exclude employer contributions and other employment costs. They also do not represent PTM’s proposed fee increase.

Association of Registered Child Care Providers Malaysia (ARCPM) president Norsheila Abdullah warned that smaller private daycare operators could face closure without sufficient assistance to manage rising expenses.

She said closures could cost caregivers their jobs and reduce parents’ access to safe, accessible childcare. Families might also turn to facilities with inadequate staff training, monitoring or safety standards.

Associations Call For Targeted Support

PTM has proposed targeted wage subsidies for eligible registered kindergartens, particularly during the transition to the higher minimum wage.

Gan also called for grants to support staff training and safety equipment, as well as assistance to help operators secure affordable premises.

Other proposals include fee assistance for families in need, bulk purchasing of essential supplies and group training organised through associations to help reduce costs.

He stressed that cost-saving measures should not compromise adequate caregiver numbers, children’s nutrition, education quality or safety.

Calls For Greater Childcare Investment

ARCPM has proposed studies to assess how rising operating costs could affect private childcare centres, particularly those serving lower-income families or located in areas with limited childcare options.

Norsheila also called for dedicated funding for childcare and early childhood development, separate from allocations for formal education.

She emphasised that quality childcare begins before children enter kindergarten or school, making support for early childhood services important for both families and providers.

The proposals highlight the challenge of balancing higher operating costs with affordable childcare access, while ensuring children continue to receive safe and quality care.

Source:

Free Malaysia Today – “Kindy, daycare operators see fee hikes of up to 20% after new minimum wage”

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