RISING costs to hire Indonesians as domestic helpers abroad are pushing up recruitment fees for Indonesian maids here, industry players said.

However, they hope the fees will come down with Malaysia’s new RM1,500 minimum wage for Indonesian helpers.

The maximum fee for hiring an Indonesian domestic helper is now capped at RM15,000 under the Memorandum of Understanding (MOU) on Employment and Protection of Indonesian Domestic Helpers signed between Malaysia and Indonesia last month.

Previously fees that went beyond that cap led to many complaints from employers in Malaysia.

Pertubuhan Kebangsaan Sumber Manusia committee member Julian Tan Kok Hang said there are two main factors why fees are high for Indonesian maids.

“The first is that the recruitment process in Indonesia is very troublesome. Agents travel to small islands and rural areas to recruit workers. There are many procedures to comply with and each step involves cost.

“Secondly, Indonesian domestic helpers are in popular demand around the world, besides Malaysia. If the pay here is not good, agents will rather send recruits to Hong Kong, Taiwan and the Middle East,” said Tan.

Tan said the first batch of domestic helpers from Indonesia will arrive in Malaysia on May 31.

He did not not know the exact number but said it was a good step towards alleviating the shortage of domestic helpers needed in Malaysia.

Earlier this year, it was reported that 10,000 maids would be recruited after the MOU was signed.

Malaysia has a shortage of foreign workers after the government froze intake for more than a year during the Covid-19 pandemic. The ban was lifted last October.

Domestic helpers whose permits expired have had to leave and employers found it difficult to find new workers due to the freeze and foreign labour shortage.

Persatuan Agensi Pekerjaan Malaysia (Papa), previously known as the Malaysian Association of Foreign Maid Agencies, said the RM15,000 cap has made hiring fees more reasonable.

“It’s reasonable because it is not easy on the Indonesian side to recruit workers, not to mention the various other expenses,” said Papa president Foo Yong Hooi.

“But now that their salary will be raised to the minimum wage of RM1,500, I hope Indonesian agencies can reduce their fees further. However, as I understand it, some agencies are still demanding high fees.”

Foo said agencies that want high fees are adamant it is difficult to recruit people as domestic helpers because salaries are low.

Malaysian National Association of Employment Agencies president Fiona Low agreed with Foo. She said that despite the MOU capping hiring fees, in reality it will depend on whether Indonesian recruitment agencies will lower their costs.

“Of course, I hope it will be done under the RM15,000 cap in the MOU. If costs on that side (Indonesia) can be lower, then we can also provide workers at a lower cost.

“But if costs there remain high, then we too have to provide at a higher fee,” said Low.

Indonesian Ambassador to Malaysia Hermono reportedly said last month that agents there should only be charging between RM7,000 and RM8,000, at the most, to send domestic helpers to Malaysia.

Malaysia and Indonesia signed the MOU on April 1 to ensure that the rights and interests of Indonesian domestic helpers are protected, which stipulates a minimum salary of RM1,500.

Ambassador Hermono said recently that an e-tracking system will be used to monitor employers who fail to pay their domestic helpers’ wages on schedule.

Hermono previously expressed Indonesia’s concern about the way its citizens working as maids in Malaysia have been treated, following several cases of abuse and even deaths of domestic helpers. – May 28, 2022.