Johor food stall faces S$968 fine for failing to update menu with CNY surcharges
A food stall in Johor is facing a fine of at least RM3,000 (S$968) for failing to update its menu to include Chinese New Year (CNY) surcharges during the festive period.
A customer filed a report with the authorities after discovering a discrepancy between the prices on the menu and those on their final bill. This was despite a notice informing customers of increased prices during the festive season.
Speaking to reporters at a press conference on March 5, stall owner Mr Xie (transliterated from Chinese), 32, said surcharges of between RM0.50 and RM2 were implemented from Feb 14 to 25 so employees could be paid triple their usual wages on the eve of CNY, and double their wages on the first five days of the festive period.
The stall is located in Segamat District, the northernmost part of Johor. However, it is unclear which exact stall was involved.
The customer patronised the stall on the first day the surcharges came into effect and ordered several items:
- Char siew roasted pork rice: RM11 (RM9.50 before surcharge)
- Chicken tail meat rice: RM8 (RM6.50 before surcharge)
- Char siew: RM3.50 (RM3 before surcharge)
The bill amounted to RM22.50, but would have been RM18 without the festive surcharges.
Notice deemed illegitimate by authorities
On the morning of Feb 26, six officers from the Ministry of Domestic Trade and Cost of Living (KPDN) arrived at the stall and seized the price adjustment notice, menu, and the customer's receipt.
Mr Xie claimed that announcements about the price adjustment were placed on menus and around the stall, but KPDN officers said these notices were illegitimate.
"I also explained that the surcharges are due to higher wages for the workers and increased transportation costs during CNY," Mr Xie said in Chinese.
"Some ingredients also cannot be stockpiled in advance due to spoilage risks. However, the officers demanded that I obtain documentation from the transport company to prove these cost increases."
Additionally, officers reportedly informed Mr Xie that he was not allowed to paste stickers showing new prices on the menu — he had to print a new one instead.
Municipal councillor calls for understanding and clearer guidelines
Segamat Municipal Council (MPS) councillor Eric Teo, who was present at the press conference, said he visited KPDN's Segamat branch to understand the situation and was told Mr Xie faced a minimum fine of RM3,000.
He urged Malaysian authorities to be more understanding of the increased cost pressures businesses face during festive periods, and to provide clearer guidelines for implementing holiday surcharges.
Last year, Oriental Kopi in Malaysia drew backlash for increasing its service charge from 10% to 15% on the first two days of CNY. The restaurant apologised and reversed the move after receiving complaints from members of the public.
Transparency about surcharges strongly encouraged in Singapore
In Singapore, a hair salon in Tengah was criticised for implementing surcharges a month before CNY. Separately, a 75 per cent festive surcharge in carpark fees at People's Park Centre sparked outrage, with concerns that the significant increase could deter customers and affect businesses.
The Consumers Association of Singapore (CASE) strongly advises businesses to be transparent about price increases by "displaying surcharges clearly and prominently", said CASE president Melvin Yong, who is also the Member of Parliament for Radin Mas.
Consumers should clarify additional charges with the business beforehand, and are advised to seek assistance from CASE if they were charged unexpectedly.
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