Several maid agencies in Singapore have been called up by the country’s anti-competition watchdog, following earlier reports that they would raise the pay of new maids from $380 to $450.

The Straits Times understands that they were also requested by the Competition Commission of Singapore to provide various documents, including their financial statements.

The CCS confirmed yesterday that it is “investigating the matter,” but declined to elaborate as investigations were ongoing.

Those called up were among some 17 maid agencies — said to be major ones — which reportedly agreed last month to the pay hike in order to alleviate a supply crunch.

The move swiftly drew allegations of price-fixing and profiteering from other maid agencies and employers.

It also triggered concerns among employers that they could be held hostage by their domestic helpers, who may request for a similar pay increase.

A check with at least five agencies revealed that they were interviewed by CCS officials after news broke of the pay hike. The one-on-one meetings took place at the CCS office or the agencies.

“They asked us if we are making any profit from the pay increase. They said they are investigating,” said an agent who did not want to be named.

Following the meetings, the CCS sent out a letter asking for various documents, including the agencies’ financial statements.

“They asked for the breakdown of new Indonesian maids we are bringing in, and the total turnover for that group,” said the agent.

The agencies interviewed by The Straits Times rebutted claims that they were engaged in price-fixing.

Another agent, who declined to be named, said: “It was just an impromptu casual chit-chat session among us as we all face common problems. It was not a closed-door meeting, nor was there any agenda for the gathering.

“The employment agencies market here is so fragmented, we can’t control it with a single price.”

He also pointed out that the agencies would not benefit much from the pay hike, which is necessary to attract Indonesian maids to work in Singapore.

These maids are in great demand following a shortfall in the supply of Filipino maids, after the Philippine authorities enforced more stringent rules on nationals working overseas last July.

Maids from Indonesia and the Philippines make up the majority of the estimated 196,000 maids in Singapore.

Despite the reasoning put forth by these agencies, news of the pay increase has drawn flak from irate employers.

Reader Tang Lishan, who wrote to The Straits Times Forum page this month, said: “There should be rules against what the 17 agencies have done. They have ganged up to impose a practice at the expense of consumers.”

Speaking to The Straits Times yesterday, Madam Halimah Yacob said: “If you look at the way the announcement was made, it inevitably gave the impression that there was some prior discussion made. It is the CCS’ job to investigate these claims.”

“We don’t know if it is indeed anti-competition, but it is now up to 17 agencies to justify why it’s not,” said the MP for Jurong GRC.

The move by the CCS comes ahead of changes to the Employment Agencies Act, which will take effect from April. Among other things, the amended Act will include measures to make all charges imposed by employment agencies transparent.

Businessman Peter Ong, 62, an employer of an Indonesian maid, welcomed the check by the CCS.

“The authorities should step in to make sure it’s a fair game in the market,” he said.

“Otherwise, the market may be monopolized, and that’s not right.” –Amanda Tan, Straits Times Indonesia