10% Service Charge

Why some restaurants in Malaysia add a 10% service charge to the final bill? The 10% service charge is often not reflected in menu prices. You will see it only in the final tally in the receipt. To be fair, these restaurants usually state the 10% service charge in fine print at the bottom of their menu. But why fine print the 10% service charge and not include them in the food prices?

Is this misleading pricing? The government certainly thinks so for the airline industry. Air Asia and Air Asia X was fined RM 160,000 each in 2018 for not indicating the final price of airfares1 (1). However, it is allowed in hospitality industry (2). Why the double standard?

The Customs Department website states that "service charges can be a replacement for tipping charge though not necessarily so". A few things don’t sit quite right with me with the Customs Department's statement.

1. If it is tipping, it should be optional and commensurate with the level of service satisfaction. 
2. Restaurants are not required to pay out the 10% to the staffs. There is no transparency on whether the 10% is paid out to the workers with most restaurants. Likely, restaurateurs will book the 10% as revenue. 
3. If the 10% service charge is part of the cost of doing business, all the more it should be reflected in the pricing. 

I certainly feel these restaurants are out to mislead with lower menu pricing to entice consumers to patronize them or order more and slap on the 10% later. I'll be exercising my rights as a consumer and vote with my wallet. I will be avoiding restaurants that charge the 10% service charge. This can be daunting as the 10% service charge is a "standard practice" in many restaurants in Malaysia.

References
1. https://www.nst.com.my/business/2018/12/437236/mavcom-fines-airasia-airasia-x-misleading-ticket-prices
2. http://www.customs.gov.my/en/ip/Pages/ip_sct.aspx