In-Depth Guide: Setting up a Childcare and Kindergarten Business in Malaysia

“Preschool enrollment rates have increased to around 90%” - Teach for Malaysia

With more parents seeking reliable early childhood education and care, the demand for safe, high-quality, and well-managed centres is higher than ever. If you love working with children and want to create a meaningful business, setting up a childcare centre (TASKA) or kindergarten (TADIKA) in Malaysia could be the perfect opportunity.

But before you dive in, there’s one big challenge—the childcare and kindergarten rules and requirements.

Childcare and kindergartens fall under different laws, different authorities, and different requirements. Navigating these rules can feel overwhelming, especially for first-time business owners.

That’s why we’re breaking it down in the most relatable way possible—through a story!

Meet Amina and Fariz, two aspiring preschool owners on their journey to open a TASKA and TADIKA. Through their experiences, we’ll guide you step by step, making the process clear, practical, and easier to follow.

Understanding TASKA and TADIKA

Amina and Fariz quickly realize that while both TASKA and TADIKA serve young children, they operate under different structures, laws, and purposes:

‍

Armed with this knowledge, they embark on their respective journeys.

Requirements to Start a Kindergarten and Childcare Centre

Step 1: Registering their kindergarten and childcare

Amina and Fariz begin by registering their TASKA and TADIKA with Suruhanjaya Syarikat Malaysia (SSM).

• Amina’s TASKA must comply with JKM’s childcare regulations.
• Fariz’s TADIKA follows MOE’s kindergarten licensing process.

This ensures they are legally recognized and can proceed with licensing applications.

Step 2: Understanding authorities and regulations

Before opening a childcare or kindergarten, Amina and Fariz must understand the key authorities and laws.

‍

Step 3: Meeting owner or director requirements

To operate a TASKA, Amina must:

• Be a Malaysian citizen
• Be at least 18 years old
• Pass the Permata Early Childhood Care and Education Course (KAP)

For TADIKA, Fariz must:

• Be at least 21 years old
• Pass the Permata Early Childhood Care and Education Course (KAP)

If run as a partnership or Sdn Bhd (Sendirian Berhad), at least one partner/director must meet these requirements.

Step 4: Hiring qualified caregivers

Both Amina and Fariz need qualified educators.

TASKA Caregivers

• Must complete the Basic Childcare Course (KAAK).
• Maintained child-to-caregiver ratios:
  
  • Infants (0-1 year): 1:3
  • Toddlers (1-3 years): 1:5
  • Toddlers (3-4 years): 1:10

TADIKA Teachers

• Must hold a Diploma in Early Childhood Education (ECE).
• Maintained ratios:
  
  • Preschoolers (4 years): 1:10
  • Preschoolers (5-6 years): 1:15

Step 5: Ensuring the right child-to-floor ratio

Before Amina and Fariz can set up their centres, they need to ensure compliance with space requirements. This ensures safety, comfort, and adherence to local guidelines.

‍

Step 6: Installing CCTV and safety measures

For TASKA: CCTV installation is mandatory for institutional centres, ensuring the safety of infants and toddlers.

For TADIKA: CCTV is not compulsory but highly recommended for security and monitoring.

Step 7: Completing mandatory training and licenses

Regardless of whether they are opening a TASKA or TADIKA, both Amina and Fariz must ensure that they and their staff complete the necessary training and obtain the required certifications.

‍

Following the Step-by-Step Setup Process

Now, Amina and Fariz finalize the setup of their centres:

1. Securing suitable premises.
2. Applying for JKM (TASKA) or MOE (TADIKA) approval.
3. Completing safety inspections.
4. Hiring and training staff.
5. Setting up learning spaces and security measures.
6. Launching marketing campaigns.

The Grand Opening

After months of hard work, Amina and Fariz proudly opened their centres, providing quality care and education to children!

Subsidies and Incentives for Childcare and Kindergarten

After setting up their TASKA and TADIKA centres, Amina and Fariz discovered valuable support systems to improve their services and support families.

The Malaysian government offers a range of subsidies and incentives designed to improve accessibility and quality in early childhood education.

• Fee Assistance for Low-Income Families: Subsidies are available to help cover TASKA and TADIKA fees, ensuring children from underprivileged backgrounds can access quality early education.
• Operational Grants for Centres: Registered centres can apply for grants to upgrade facilities, train staff, and enhance educational resources, fostering continuous improvement.
• Tax Incentives: Operators benefit from tax deductions and incentives, easing financial pressures and encouraging the growth of quality childcare and kindergarten centres.

By tapping into these opportunities, Amina and Fariz not only enhanced their centres but also made their services more affordable and inclusive for the community.

Aspiring owners should explore these incentives to boost the sustainability and impact of their TASKA and TADIKA centres.

How illumine Can Help You Stay Compliant

While this guide simplifies the setup process, we understand that staying compliant after your childcare centre or kindergarten is up and running can still feel complex.

That’s where illumine comes in. Our software is designed to help you maintain compliance effortlessly, ensuring your centre remains a safe and nurturing environment for children.

Here’s how we can help:

‍

Begin Your Own Journey

Whether you’re like Amina, focusing on childcare, or like Fariz, preparing kids for school, following these steps ensures a smooth and compliant setup.

Ready to start your own TASKA or TADIKA? Let this guide be your roadmap to success.

You can also explore how top 5 Malaysian childcare centres function to learn from their journeys and get some inspiration!