Price war among employment agencies at Katong Shopping Centre

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Competition among employment agencies of foreign domestic workers is becoming more intense at Katong Shopping Centre. Some are charging agency fees as low as S$1, leading to concerns of hidden costs and the welfare of the maids.

There are about 50 maid employment agencies at Katong Shopping Centre. Competition is tough, and price has been the key in luring customers. Agency fees, or administrative charges can vary from about S$200, to as low as S$1.

However, the price war at the shopping centre has drawn some concerns.

Seah Seng Choon, president of the Foreign Domestic Worker Association for Skills Training (FAST), said: “Employment agencies are businesses; they have to recover their costs somewhere. So, by lowering the agency fee to ridiculous levels, they will have to recover the costs elsewhere.

“So, it may not be transparent in their disclosure of prices, and therefore employers of maids may be misled to think that fees have actually gone down."

There are also concerns on the welfare and well-being of the foreign domestic workers.

When employment agencies try to cut corners -- like having very low agency fees -- it is possible they may be skimping on the cost that they need to pay for the upkeep of the foreign domestic workers while they are with the agencies.

Seah, who is also the executive director of the Consumers Association of Singapore (CASE), urged employers to compare the costs from several agencies before making a decision, to ensure they are not being overcharged.