INDIAN restaurants nationwide are facing a bleak future with the extension of the movement control order (MCO), with some facing losses of up to 85% of their income, said the Malaysian Indian Restaurant Owners Association (Primas).

The association said since the first MCO in March last year about 30% of their members had shut their businesses.

This, the association said, was due to fixed costs – such as rent, salary and utilities – and falling revenue.

Primas president J. Govindasamy said with MCO 2.0, restaurant owners are unable to cover rent, and pay vendors and salary, and have accumulated large debts.

“The owners are losing about RM30,000 to RM50,000 depending on the size of their premises,” Govindasamy told the Malaysian Insight.  

Primas has about 1,500 members nationwide.

The association said the restaurants that had shuttered are mostly located in Selangor, Kuala Lumpur, Johor and Penang.  

Govindasamy said business owners are also struggling to stay a float and provide for their families.

“During the first MCO, they used up their savings to survive. Now their savings are depleted,” he said.

They are, however, thankful that dine-ins, with only two patrons to a table, are now allowed.

Govindasamy said they have sent letters to the Finance Ministry and Prime Minister’s Office in mid-January requesting for grants.

“We hope the government can give us a two month grant to cover our rental. We also hope that our landlords can waive rental for two months.”

He also hoped the government would allow restaurants that had operated for 24 hours previously, be now allowed to open until midnight.

“These restaurants have more staff, so we hope they can operate up to midnight. It will also benefit those who are working late to get food.”

Govindasamy said many restaurant operators are finding it difficult to survive as they can no longer keep their staff.

“We are looking at sending back about 6,000 foreign workers to their countries.” – February 12, 2021.