Latest news with #Primas
The Star
13-07-2025
- Business
- The Star
Bang for your buck no more?
Malaysian Indian Restaurant Owners' Association (Primas) president J. Govindasamy Price of popular fare to rise amid soaring operating costs PETALING JAYA: Prices of banana leaf meals, tomyam and fried rice are likely to go up by month's end as eateries are buckling under rising operating costs. Industry leaders say the combined impact of higher prices for ingredients, logistics, labour and new energy tariffs is pushing many establishments to the brink. Some are saying that the hike in prices could be between 10sen and 50sen depending on the dish and the location of the eatery. Malaysian Indian Restaurant Operators Association (Primas) president Datuk J. Govindasamy ( pic ) said many members have tried to maintain their prices in spite of escalating costs, but this is no longer possible. ALSO READ: 'Govt ready to clamp down on arbitrary hikes' 'Operators are facing sharp hikes in the cost of rice, cooking oil, spices and other essentials. 'We've tried to hold back, but with electricity bills also expected to go up this month, many simply can't sustain it any longer.' Govindasamy noted that restaurants have been cooperating with the Dom-estic Trade and Cost of Living Ministry to maintain prices, but the latest wave of cost increases – particularly with the Sales and Service Tax (SST) now covering a wider range of goods – is proving too much to bear. 'While prepared food is not taxed under SST, many of our supplies now are. ALSO READ: Sales tax not the sole cause behind bitter hit 'That includes cleaning items like detergents and napkins, which are essential to daily operations,' he explained. He added that ingredients, which were previously exempt from SST, are now subject to rates of 6% or even 8%, depending on the supplier. 'These costs add up quickly and are eating into already-thin margins,' he said, adding that many restaurants are closely monitoring the situation and may adjust prices from mid-July to early August as new supply orders are placed. ALSO READ: Johor restaurants to weigh impact of SST expansion first He noted that SST is now also applied to rent and utilities, compounding the financial burden on operators. Primas represents some 1,500 Indian restaurants across the country. Govindasamy also suggested that the government consider reintroducing the Goods and Services Tax, which he said is a more structured system with input tax credits. Tomyam restaurant owners are also saying they would meet this month to decide on raising prices, according to Pertubuhan Sahabat Tomyam Prihatin SeMalaysia adviser Che Mamad Che Mod. 'Prices of raw ingredients have already gone up by 10% to 20% since the start of the year – even before the expected increase in gas prices. 'Vegetables like kangkung and kailan are now selling for RM7 to RM9 per kg, compared to just RM2.50 and RM4.60 previously. It's difficult to find kangkung for under RM4 these days,' he added. Although there are over 1,000 tomyam eateries across the country, most operators have so far resisted raising prices. 'Last year, we agreed to hold back any increase out of concern for the public. If we're struggling, others must be struggling more. We slashed our margins to support the government's efforts.' But this year, Che Mamad said operational costs have climbed across the board – from ingredients to utilities to staff, which includes permit fees, insurance, EPF and Socso contributions for migrant workers.
The Star
03-07-2025
- Business
- The Star
Short-staffed restauranters urge govt to expedite intake of foreign workers
PETALING JAYA: The government should reopen and expedite the intake of foreign workers for the food and beverage industry, the Malaysian Indian Restaurant Owners Association (Primas) urges. Primas president Datuk J. Govindasamy said the industry is facing an acute foreign workers shortage, which is affecting service quality, hygiene, compliance and operational capacity of restaurants. "Many restaurants are forced to reduce hours, cut menu items and in some cases shut down entirely," said Govindasamy in a statement on Thursday (July 3). "Indian restaurants play a crucial role in serving the people, especially the B40 group and without workers, even staple dishes such as roti canai are becoming difficult to serve. He said increasing the sales and service tax (SST) without addressing worker shortages was counterproductive. "With Visit Malaysia 2026 fast approaching, the F & B sector must be ready to provide top service to tourists and cleanliness, efficiency and hospitality depend on adequate manpower, which cannot be secured last minute. Primas has urged the government to fast-track the intake of foreign workers and recognise the role of the F&B sector as a major revenue earner for the country.
The Star
02-05-2025
- Business
- The Star
Egg subsidy cut won't crack prices
End of the sunny side: A shopper buying eggs at a grocery store. The government's decision to cut subsidies for eggs from 10sen to 5sen per egg and end price controls for the item began yesterday. The subsidy will be fully discontinued on Aug 1. — ART CHEN/The Star PETALING JAYA: The removal of egg subsidies will have almost no impact on the price of omelettes, noodles and pastries, say bakers and restaurateurs, as egg prices have hit the lowest level in recent memory. 'I have never seen the price of eggs this low,' said Che Mamat Chemod, a veteran of the local restaurant group, Persatuan Sahabat Tomyam Prihatin Semalaysia. 'So the removal of subsidies will not affect us because we have never had such low egg prices, even in the pre-Covid-19 era,' said Che Mamat, the association's adviser. A tray of eggs in the food production industry is now priced as low as RM9, said Malaysia Bakery, Biscuit, Confectionery, Mee and Kuey Teow Merchants' Association president Chaang Tuck Cheong. 'Previously, a tray cost us RM16, and this caused a 10% increase in our operating costs,' he said. 'So, the 5sen seems reasonable and will not impact our members that much,' he said in response to the government's decision to cut subsidies for eggs from 10sen to 5sen per egg and end price controls for the item starting yesterday. The subsidy will be fully discontinued on Aug 1. The decision was made after considering the industry's commitment to ensuring a sufficient and stable production of eggs, following the stabilisation of production costs. However, the Malaysian Indian Restaurant Owners Association (Primas) is taking a cautious stance regarding the potential impact of the subsidy cut on egg prices, and consequently, on the cost of dishes containing eggs. Primas president Govindasamy Jayabalan said restaurants would first need to see how much their suppliers charged for ingredients. 'Eggs are a big staple and part of Malaysians' diet, especially during breakfast. We can't decide anything now because we need to see how much our suppliers will charge before they pass on their costs to us. 'We also don't want to burden the people, which is why we urge the government to continue the subsidy for another year,' he said. 'But we also understand that the government has spent billions on the subsidy. So we will do our best for the country and our customers and maintain our prices.' Malaysia imposed ceiling prices for eggs, ranging from 38sen to 42sen each, depending on their grade and quality, in response to elevated prices and a shortage caused by supply chain disruptions resulting from the Covid-19 pandemic. The government spends about RM100mil per month, or RM1.2bil a year, on the egg subsidy. Previously, subsidies and price controls for chicken were lifted in November 2023.
Yahoo
24-04-2025
- Business
- Yahoo
France to seek protection from Chinese steel imports after ArcelorMittal job cuts
PARIS (Reuters) -France and other European countries will push for measures to protect the European steel industry against Chinese imports, French government spokesperson Sophie Primas said on Thursday. Primas was responding to an announcement by steel manufacturer ArcelorMittal that it will eliminate around 600 jobs across seven French sites due to the crisis in Europe's steel industry. "We have taken some first steps, notably on the question of quotas and the introduction of Chinese steel quotas, but we must go further and France is at the forefront," Prima told broadcaster CNews/Europe1. Steelmakers across Europe have been hit by high energy prices and competition from cheap Chinese imports. They also now face larger tariffs on exports to the United States. Primas said Chinese overproduction of steel was partly to blame for the reduced competitiveness of Europe's steel industry. In a statement sent to its Works Council on Wednesday, ArcelorMittal France North said it had "implemented all possible short-term adaptation measures, but the company must now consider reorganisation measures to adapt its business to the new market context and to ensure its future competitiveness". Arcelor's move follows a similar announcement by competitor Tata Steel, which earlier this month said it would scrap around 20% of the jobs at its large plant in the Netherlands. ArcelorMittal's job cuts have prompted criticism of the steelmaker, which has benefited from French government subsidies amid a push to reindustralise portions of the country. "We have fought hard to ensure that the government and the European Union support the financing of the decarbonisation that is essential to ArcelorMittal," said Xavier Bertrand, the president of Hauts de France, a region housing several of the sites affected by the job cuts. "It is time for the group to tell us when these investments will be made," he said in a post on X. Sign in to access your portfolio
Reuters
24-04-2025
- Business
- Reuters
France to seek protection from Chinese steel imports after ArcelorMittal job cuts
PARIS, April 24 (Reuters) - France and other European countries will push for measures to protect the European steel industry against Chinese imports, French government spokesperson Sophie Primas said on Thursday. Primas was responding to an announcement by steel manufacturer ArcelorMittal ( opens new tab that it will eliminate around 600 jobs across seven French sites due to the crisis in Europe's steel industry. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. "We have taken some first steps, notably on the question of quotas and the introduction of Chinese steel quotas, but we must go further and France is at the forefront," Prima told broadcaster CNews/Europe1. Steelmakers across Europe have been hit by high energy prices and competition from cheap Chinese imports. They also now face larger tariffs on exports to the United States. Primas said Chinese overproduction of steel was partly to blame for the reduced competitiveness of Europe's steel industry. In a statement sent to its Works Council on Wednesday, ArcelorMittal France North said it had "implemented all possible short-term adaptation measures, but the company must now consider reorganisation measures to adapt its business to the new market context and to ensure its future competitiveness". Arcelor's move follows a similar announcement by competitor Tata Steel, which earlier this month said it would scrap around 20% of the jobs at its large plant in the Netherlands. ArcelorMittal's job cuts have prompted criticism of the steelmaker, which has benefited from French government subsidies amid a push to reindustralise portions of the country. "We have fought hard to ensure that the government and the European Union support the financing of the decarbonisation that is essential to ArcelorMittal," said Xavier Bertrand, the president of Hauts de France, a region housing several of the sites affected by the job cuts. "It is time for the group to tell us when these investments will be made," he said in a post on X.
