NO THANKS to Covid-19 and movement restrictions, there may be fewer banana leaf rice restaurants left where Malaysians can enjoy the South Indian food that has become a local favourite.

Up to 15% of the banana leaf rice restaurants will have to close because many have not benefited from government aid during the movement control order (MCO), said the Malaysian Indian Restaurant Owners Association (Primas).

“Although the government came out with the Special Relief Fund and Bank Simpanan Nasional micro credit, many of our members did not benefit from it,” Primas president Muthusamy Thirumeni told The Malaysian Insight.

For one, many Primas members did not have the track record to qualify for the loans and are now facing cashflow problems.

Second, as most workers in Indian restaurants are foreigners, they do not qualify for the wage subsidy programme, which is only for Malaysian workers.

The nearly two-month closure due to MCO, which began on March 18 until dine-in with social distancing was allowed from May 4, has affected many of their 1,200 members, said Muthusamy.

“The impact is worse on the operators that have just started their businesses within the past two years.

“Larger and long-time operators may be able to sustain their cashflow because they have saved but the small or new operators have problems.”

Sri Seenu (formerly known as Sri Paandi) owner Sinnaiah Alagan told The Malaysian Insight that he closed five of his 11 restaurants during the MCO period.

Muthusamy said the impact is expected to get worse as there are around 4,000 Indian restaurant owners.

“This doesn’t include the roadside stalls as our members are mostly restaurants housed in shop lots.”

Besides cashflow issues, Muthusamy said that operators also faced problems with landlords who refused to lower rental during the MCO, as well as costs associated with foreign workers.

“The government is subsidising wages, but this is limited to local workers only. Yet, Indian restaurants generally employ 60%-80% foreign workers and the subsidy doesn’t apply to us.

“Moreover, we now have to pay RM300 per foreign worker for them to undergo Covid-19 tests before they can resume work.”

Muthusamy said the government should come up with something more specific for Indian restaurant businesses.

“They can make it easier for us to apply for the aid as banks are very stringent and they should get the insurance companies to pay for the Covid-19 tests.”

Although businesses have to pay for medical insurance for their foreign workers, the Covid-19 tests are not covered by this.

“Year in, year out we have to pay for medical insurance. How is it that they (insurers) can’t pay for the Covid-19 tests?” said Muthusamy.

Sinnaiah said he had to cough up around RM5,000 per restaurant to have his workers tested.

“The government said we could take out a 3.5% interest loan but my application hasn’t been approved.

“Meanwhile, prices of vegetables and food have gone up four times due to transport costs,” said Sinnaiah, who has been managing Indian restaurants for 40 years.

“I can stay afloat after closing five restaurants but I don’t think the small one-shop owners are going to survive this,” said the 55-year-old. – June 7, 2020.