Maicci ‘monopoly’ riles rival groups

The Malaysian Associated Indian Chambers of Commerce and Industry is aiming to earn RM23 million by charging a RM500 'administration fee' to process each new foreign worker application.

PETALING JAYA: Prime Minister Najib Tun Razak’s Cabinet has approved the entry of 45,000 foreign workers from India to fill vacancies in the service, textiles and scrap metal industries.

It is learnt that the Malaysian Associated Indian Chambers of Commerce and Industry (Maicci) has been empowered to bring in these foreign workers.
According to a circular sent out by Maicci to its branches and affiliates throughout the country, the Home Ministry has appointed them as the ‘authorised body to submit direct applications’ for foreign workers in 14 sectors, including textiles, restaurants, hair-dressing, scrap metal and welfare homes.

The letter, a copy of which was faxed to FMT by a disgruntled member, said the chambers would take the responsibility of processing the applications, for foreign workers, from the Indian business community.
The letter also indicated Maicci would charge a RM500 ‘administration and processing’ fee for each application.

Apart from upsetting its grassroot members, the Maicci circular has also irked other business chambers.
These groups have questioned the Home Ministry’s decision to give Maicci monopoly over recruitment of foreign workers.

According to a source from another business chamber, by charging RM500 per application for foreign worker, Maicci will be generating a revenue of RM23 million.

“Why has the Home Ministry appointed Maicci as the sole authority? They should have given a few of us the right to recruit as well,” said the source.

The source urged the Home Ministry to review its decision. He also urged the Malaysian Anti Corruption Commission to investigate the RM500 administration fees charged by Maicci.

President says no such deal
Maicci president Kenneth Eswaran, when contacted, however dismissed the allegation saying the business chamber did not deal with any foreign workers in the country.

“Our task is to assist local Indian business community. MAICCI does not deal with foreign workers,” said Eswaran.

The Maicci circular which FMT sighted was dated May 10, 2011 and was issued by the Penang Maicci chapter. It was signed by its secretary R Sarwaisveran Pillai, stating that it was “advised by Maicci that the Home Ministry had authorised the chambers to submit direct applications for foreign workers”.
According to the circular, of the RM500 ‘administration and processing’ fee payable, a payment of RM300 should be made to Maicci and the remaining RM200 to the state chapter.
Each member company is only allowed to apply up to 10 Indian wokers.

Too expensive
Meanwhile on the ground, the RM500 fee has stirred resentment among Maicci members who are demanding to know why they have to pay more.

“How can Maicci charge us RM500 for each new application. It is not legal and also a  burden to us.
“Already we are paying RM1,200 as levy fee a year. With another RM500 for MAICCI, it is impossible for small companies like hair saloon, laundry and cleaning services to survive.

“We are labour intensive businesses,” said a business operator.