KUALA LUMPUR: Three Malaysian associations have warned that a new minimum wage of US$500 (RM2,350) for Filipino domestic helpers could drive up costs and slow recruitment.
The Malaysian Association of Employment Agencies (Papa), the National Association of Private Employment Agencies (Pikap) and the Malaysian Maid Employers Association (Mama) fear the move by the Philippines could be followed by other source countries.
Papa president Datuk Foo Yong Hooi said Malaysia depends on about 40,000 helpers from the Philippines and the US$100 increase adds pressure on employers.
He urged Malaysia to hold talks with the Philippine government on alternatives, including a temporary postponement of the new wage.
“At present, our weakness is that Malaysia has no memorandum of understanding (MoU) with the Philippines as it does with Indonesia.
“So, we hope the two governments can discuss a joint initiative and Malaysia can request a deferment,” he told Berita Harian.
On Aug 22, the Philippine government announced the minimum wage for its overseas domestic workers would rise from US$400 to US$500, to be enforced within 60 days.
Yong Hooi said there are concerns other source countries may follow suit.
Pikap president Fiona Low said Malaysia will be the only country affected because most others already have minimum wages above US$500.
“The increase applies to all countries, but Malaysia is impacted because our minimum wage is lower.
“I was informed there will be interviews from the Philippines with our government to discuss the increase. We suggest that when enforced, a ceiling exchange rate between the dollar and ringgit be introduced temporarily.
“For example, if the rate is RM4.2, then it should be capped at RM4.2,” she said.
She added the new wage could reduce the number of Filipino helpers, as only employers who can truly afford it will proceed.
Low said the Philippines must also ensure better quality helpers to match the new wage.
Mama president Engku Ahmad Fauzi Engku Muhsein described the 25 per cent increase as too steep and unjustified.
“The Philippines needs to explain the rationale for such a sharp hike, as no justification has been given.
“Other source countries are satisfied with the current minimum wage for their domestic workers in Malaysia.
“Any increase must be aligned with quality, performance standards and service,” he said.
© New Straits Times Press (M) Bhd
