Private nurseries in Malaysia struggle to stay in business

About three million children aged four and below need daycare services in Malaysia but many private nurseries are struggling to keep their doors open.

Association of Registered Child Care Providers Malaysia vice-president P.H. Wong said the government should extend support to private childcare centres because of high operating costs.

As of May this year, 1,086 childcare centres had been registered with the Welfare Department: 989 were privately run, 16 set up by companies at work places, 67 in government offices and 14 were community-based.

Even for community-based childcare centres, there were few takers despite the 50,000 ringgit (US$16,329.2) set-up grant and annual 64,000 ringgit subsidy given by the government, Wong said.

This was because the subsidy barely covered operating costs since lower income parents could only afford to pay 200 ringgit to 350 ringgit for each child, she added.

A former childcare centre owner, who wanted to be known only as Cheong, said she closed her centre in Sri Petaling last month after operating for more than two years because the 600 ringgit to 800 ringgit monthly fees she collected from 14 parents could not cover the monthly expenses.

"It was really heartbreaking. I don't want to do it [run a centre] again," said the 36-year-old.

She could not continue paying the 3,000 ringgit rental for a corner unit house, pay providers' salaries, food, beverage and toys for the children, and utility bills, said Chong who spent 25,000 ringgit to set up the centre.

She also had difficulty looking for care providers because the heavy workload made people reluctant to take the job even if she offered more than the 1,000 ringgitto 1,600 ringgit salaries.

Social Welfare Department legal and advocacy division director Zaitol Salleh said that two nurseries had surrendered their licences from January to May, and on average five cease to operate each year.

Another childcare centre operator, who only wanted to be known as Ooi, said she had to close her nursery in a condominium after operating it for seven years because she could not get baby sitters.

"Most baby sitters prefer to work on their own at home while the young people prefer other jobs," said Ooi, who is in her 50s.

US$1 = 3.06 Malaysian ringgit