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Minimum wage policy causes preschool closures in Sarawak

Published by SchoolAdvisor | Feb 27, 2013
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According to Sarawak Welfare Women and Family Development Minister Datuk Fatimah Abdullah, the closure of many privately run preschools in the state was caused by the minimum wage policy.She concerns many more will end their business when the minimum wage policy is made mandatory starting July. In January 2013, the implementation of the minimum wage of RM800 came into force.The closures have had a negative effect on women workers in Sarawak. "With no one to tend to their young children, these highly educated women will have no choice but to stay home to look after their children." added Fatimah.

Preschool kids

However, Fatimah said the policy was not the key reason for the closures.One reason cited was the setup of the free government run Kemas preschools, which posed strong competition to private preschool operators.Fatimah stated that she would hold a meeting in the week starting 25 February 2013 with the Council of Early Childhood Education and registered preschool operators to discuss the issue.