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I am not the least surprised nor shocked at the statement by Deputy Home Minister Tan Chai Ho who confirmed that the government was having a tough time getting agencies there to abide by the rates agreed to in the MoU (memorandum of understanding) signed by both governments in November 2006.

And I believe, once again, the difference between 'rhetoric and facts' has come to haunt Malaysia.

I am referring to the promise of cheaper Indonesian domestic help which has never materialised as Indonesian maid agencies continue to refuse to reduce their rates.

This despite all the "song and dance and high powered political showmanship" culminating in the now irrelevant and worthless MoU between Indonesian and Malaysia.

During the height of the episode, which in my mind hinged on 'pure political showmanship' rather than reality, all human resource managers and consultants knew only too well having done their homework on the ground that it would be difficult to provide maids at the agreed amount and now it is clear that the government has not been able to come up with any solution or new agreements - a fact acknowledged by the deputy minister himself.

In the said MoU, it was agreed that Malaysian employers would pay RM2,415 to the local agent while the maid would have to come up with RM1, 228 to pay the agent in Indonesia.

And if the maid be unable to come up with this amount, the employer would pay an advance, which would then be deducted from the maid's salary (up to 85%) every month.

Although Malaysian agents are currently charging RM2, 415 as their fees, employers have complained that they are paying between RM5,000 and RM6,000 to hire a maid.

It is understood that this is because the Indonesian agents are charging the maids between RM2,000 and RM4,000 for their passage to Malaysia.

The deputy minister also stated that a major factor preventing the Indonesian agents from reducing their fees for Malaysia-bound maids was that employers from other countries were able to afford such prices - a reality we must painfully accept.

There is certainly a difference between "pretenders and professional" service providers.

For good, honest, skillful competent maids, there is competition from Hong Kong, Korea, Japan, Singapore, the Gulf region and the Asia Oceanic countries.

Based on reports, a large percentage of those coming in for anything less are alleged to have other "intentions" rather than employment as maids!

But overall a fact that must be painfully acknowledged by politicians and policymakers is that it is 'market conditions' which decide the services available and rendered - not statutes, legislations, guidelines, arm twisting, or threats from politicians.


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