Hotels and restaurants not allowed to impose service charge

All hotels and restaurants are not allowed to impose service charge effective today, says the Domestic Trade, Cooperative and Consumerism Ministry (KPDNKK).

Its secretary General Datuk Seri Alias Ahmad said the charge could only be imposed if there was a collective agreement between employer and employees.

Businesses are also required to display the services provided to the customers, should they wish to impose the service charge.

Alias said the matter would be executed until a new policy is established.

He explained that service operators should explain the reason behind imposing the service charge to customers.

“Service operators should know the types of services they receive, if it is self service, what kind of service they (business) they wish to charge?

“It is the consumers rights to make a decision and no service charge rate is set,” said Alias during a press conference held at the Finance Ministry today.

Service charge or tips is an international practice. It is out of anyone’s control and is tied between the consumers and service operators.

“Until now there is no body which controls the service charge issue in Malaysia and the government is facing restraints as there is also no specific Act for it.

“This my administration is issuing this order,” said Alias.

Alias also informed that a working committee has been established involving KPDNKK, Finance Ministry and the human Resource Ministry to review the service charge in the country.

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