Malaysians call out ‘blatant profiteering’ as Lunar New Year service charge rises at eateries

Angry diners question whether the extra levy truly benefits workers or boosts profits of restaurant owners

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Malaysians have criticised restaurants for increasing service charges to 15 per cent during the Lunar New Year holiday. Photo: Shutterstock

Published: 1:17pm, 22 Jan 2025

Malaysians have accused business owners of “blatant profiteering” over the increase in service charges at restaurants during the Lunar New Year holiday next week.

Complaints started to bubble earlier this week after coffee chain Oriental Kopi, which has 23 outlets across the country and one in Singapore, announced that it will charge a 15 per cent service charge on the two holiday days (January 29 and 30) instead of the usual 10 per cent.

The Malaysia Singapore Coffee Shop Proprietors’ General Association said other restaurants were also imposing similar surcharges that can be levied at their discretion, local media reported.

Andrew Lo from the Labour Solidarity and Learning Resources Association questioned whether business owners plan to take a cut of the 15 per cent service charge instead of giving it all to workers.

“We want confirmation that the full service charge will go to workers; otherwise it is blatant profiteering,” Lo said in a statement on Tuesday.

Frequent public frustration over service charges have led the Royal Malaysian Customs Department to clarify the difference between a service charge and the government’s service tax.