So you finally get the chance to eat an amazing Nasi Lemak in Malaysia or the best Indian food you’ve had in a while – so much that you want to show appreciation to the restaurateur for a meal you won’t forget in a while.
If this happened in where you lived, you’re ready to leave a good tip. But you realize you’re in Malaysia. Do you tip or not? If yes, how much should you tip in Malaysia?
In this article, we’ll share more about the tipping culture in Malaysia – when are tips expected, when you should not tip, and how much to tip. Bear in mind this is coming from a local’s perspective.
Do I need to tip in Malaysia?
No, tips are not expected in Malaysia. You almost never need to tip in Malaysia. The final amount that you pay will usually include a service charge of 10% (For hospitality services) and a government mandated sales tax between 5-10%.
To briefly explain on these 2 charges: The service charge can be thought of a “tipping charge” automatically added to the bill to support the wages paid to their workers (Normal rate of 10%), whereas the government mandated sales tax (Often named SST: Sales and Service Tax, between 5 to 10% depending on type of goods) is paid to the government. Both are charged on top of the cost of goods or services provided.
Most hospitality businesses will display only the original price on the menu. Expect a 10% service charge and 6% SST when paying. In rare cases, these amounts are absorbed into the price on the menu so you pay what you see. For purchase of non-hospitality goods (eg. Shoes), you usually pay what you see – there’s no service charge and the SST is already absorbed into the price.
Here’s an example of a restaurant bill in Malaysia with the 10% service charge and 6% SST:
After paying, it’s normal practice to wait for the staff or service worker to return the change to you, no matter the amount – and it is not rude to do so. If you decide to just walk away, you’ll probably be chased down to have your money returned.
Why are tips not a thing in Malaysia and why shouldn’t I tip?
Unlike wage structures in some countries such as the US, all workers in Malaysia must be paid a minimum wage of RM1,500 per month (Around USD350) regardless of industry. This is supported by the businesses’ revenue and the service charge that is in the bill. Hence, it’s become a norm that tips are not given out/expected amongst locals.
There is also a Malaysian culture (Not entirely Asian or Southeast Asian) that we don’t take what doesn’t rightfully belong to us, especially money, so it’s harder for us to accept gratuities. It may make the situation quite awkward or uncomfortable for us.
If you still want to show your appreciation without tipping, read on for more.
How to show your appreciation without tipping
Malaysians love it when they see a foreigner speak their language, even if you butcher it. Although many languages are spoken in Malaysia, saying thank you in Malay, our national language, will never go wrong. Say “Terima Kasih” and you’ll likely see a bright smile on their face.
When to tip in Malaysia
“I thought you said I don’t have to tip in Malaysia?”
Well yes, but I’ve been coming from a local’s perspective. There are still some cases in which tips may be expected, and that usually happens with foreigners. Here are some scenarios in which you may want to think of tipping:
– Private driver/Grab ride (You can do this in-app) for long journeys
– Porter in hotels
– Private guide
– Food delivery under the rain (You can do this in-app). As a local, I sometimes leave a small tip especially when traveling conditions are bad – and most if not all of them ride a motorbike!
How much to tip in Malaysia
Since tipping is not a normal practice in Malaysia, there’s no set amount to tip. Locals don’t have the 5%, 10%, 20% tipping concept.
Depending on how generous you feel, usually a tip of one single banknote is sufficient. It can be an RM10 (USD2), RM20 (USD4), or RM50 (USD10) banknote. No matter the amount you pay, it’ll all be appreciated.
