Spas find no relief in re-opening due to worker shortage, say industry players


Bernard Saw

Businesses that hire local therapists are tend to fare better as staff are eligible for government aid. – The Malaysian Insight file pic, March 8, 2021.

SPA and wellness centres can reopen with the easing of movement restrictions but face a new problem: many of their workers, mostly foreigners, have returned to their countries due to the Covid-19 pandemic.

There are now around 10,000 vacancies for jobs in spa and wellness centres, said Gavin Foo, a leader in one of the sector’s associations.

He said it is difficult to hire locals as they do not have the skills for the job.

“Seventy per cent of spas prefer skilled foreign workers to provide services worthy of their name

“For example, the industry will hire Thai skilled workers to provide Thai massage, Indonesian skilled workers to provide Balinese massage, and Chinese skilled workers to provide Chinese massage,” said Foo who is vice-president of the Malaysia Association of Wellness and Spas (Mawspa).

He said the spa industry usually has 6,000 vacancies every year, but there are now 10,000 after the departure of many workers.

Foo, however, has managed to safeguard his wellness centre from labour shortages by hiring and  training local therapists.

But, he added, it will be difficult for many centres which are facing cash flow problems after only about five months of operation since the first movement control order in March last year.

But, now that they can open for business, they don’t have enough workers, he said.

His association has called on the Home Ministry the spa and wellness sector to hire skilled foreigners.

Some local spa businesses prefer to hire skilled foreigners as they have the knowledge for the trade. – AFP pic, March 8, 2021.

Association of Malaysian Spas (Amspa) vice president Hana Halim said the industry only operated for about half a year last year but costs remained the same.

“We still need to continue to pay rent and salaries because the government requires us not to reduce salaries. Therefore, some members can’t support it and are forced to close.”

She said around 100 Amspa members had closed down.

In the industry as a whole, about 400 companies were forced to close their doors.

A common factor in these closures is the use of foreign therapists, she said.

“Foreign therapists may have gone back to their countries or their visas may have expired and may not have been renewed.

“Those centres that hire foreign skilled workers are now short of manpower, so these centres can’t open again.”

Hana said spa businesses that are still open and performing well are the ones which use locals.

“Some spas that have short business hours and hire local workers should be able to survive.

“Some of us still have a chance to survive the pandemic, but this cannot be said of all operators.”

Foo predicted that a two-year pandemic will cause around 60% to 70% of industry players to go bankrupt.

Hana said businesses that rent a building or set up branches in shopping malls may face greater financial pressure.

“I only have five employees so I can still afford to pay salaries, etc. But if they hire foreign workers, they can’t do that because foreign workers cannot get assistance.

“Business operators in the mall may have a monthly rent of RM20,000 to RM30,000. Even if there is a discount, they still have to pay. So those businesses who operate in a mall and hire 10 workers are all in debt.”

She said these companies had almost zero business in the past three months, and with the industry being the last to reopen, it had suffered the most.

“A lot of spa industry players are considering whether to continue or to give up. The reason for not giving up is because they are still in debt and have to pay it back.

“If they give up (their business), there is no other way to repay this debt. So they hold on in hopes to repay all their debts.”

Given the current financial situation, it is more difficult for spa companies to get bank loans, especially when they are classified as non-shariah compliant industries, Hana said.

For long-term survival, it is best if more locals were willing to be trained in the spa and wellness industry. 

Foo said many Malaysians still take a dim view of such jobs, and feels it is a pity that people would rather take unskilled work rather than learn a craft.

“Regular spa workers may earn thousands of ringgits a month, if they work hard, the tips also go above thousands.”

The industry is a safe one and those concerned can always refer to its associations about whether a business is legitimate.

Associations, which help to protect the industry’s interests, will also connect workers to the relevant trade union, Foo said.

He believes that the public needs to perceive the spa industry as a necessary industry.

“If this industry suddenly disappears, many people will not know where to get treatment.

“It has a low entry-level and one can learn a lot. Let them know the standard operating procedure (SOP) and know that this is a health and safety industry.”

He said that this is also something that Amspa and Mawspa, which are recognised by the Toursim, Arts and Culture Ministry, are committed to promoting. – March 8, 2021. 


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