Deadline for business plan contest among OFWs extended

 

Poster for the Likha Global business plan contest for land-based OFWs 

Aspiring entrepreneurs among overseas Filipino workers will now have ample opportunity to present a business plan that could earn for them not just big cash prizes, but also mentoring by experts tapped by the Department of Migrant Workers.

The application deadline for “Likha Global,” a business plan competition open to all land-based OFWs with thousands of pesos in cash prizes, was supposed to have ended on Aug. 31 but has now been extended to Sept. 15.

Up for grabs is the top prize of Php500,000 for the best business plan, with the second prize winner getting Php200,000 and the third, Php100,000.

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These are on top of the Php100,000 given to each OFW who wins in the preliminary stage at each Migrant Workers Office abroad, and a further Php100,000 awarded to the 12 who make it to the final round.

Those qualified to enter the contest must be currently working abroad, have worked as documented OFWs for at least five years, must be active OWWA members (meaning membership payments are up to date), and not own or are affiliated with an established business in the country.

After hurdling the initial phase of the contest, all semi-final winners will be asked to attend the Likha National Business Bootcamp to be held in December this year, where they will be asked to present their business plan before experts, and receive mentoring so they could further enhance their business plans. All travel expenses to be incurred by the winners in the initial round will be borne by the DMW.

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Attendance to the boot camp is a must, and preliminary winners who fail to go home and join the sessions will not be allowed to claim their cash prize immediately. They will still be required to attend business mentoring sessions in the Philippine anytime within the next year, but they will have to cover their own travel expenses.

Business plans submitted as entries to the contest will be judged according to the following criteria: Presentation, 40%; Quality of business plan, 30%; and Feasibility of enterprise, 30%.

Entries may be submitted here: https://sites.google.com/dmw.gov.ph/likha-ofw/home

For the competition mechanics, click this link: https://www.facebook.com/share/p/1CZnfofPKS/

For more information, email likha@dmw.gov.ph  or you may also visit the Facebook page of the National Reintegration Center for OFWs (NRCO) here: https://www.facebook.com/NRCOCentral

‘Imported’ workers among 16 people arrested in anti-illegal work raids

 

The 6 imported workers were said to have worked illegally in restaurants 

Six people arrested in restaurants for allegedly working illegally were described as “imported workers” in a statement issued by the Immigration Department on Friday.

They were among 16 people arrested during anti-illegal work operations carried out by law enforcers across the city for four consecutive days, from Sept. 1 to 4.

In raids conducted at six restaurants, six suspected illegal workers and two employers were arrested.

PINDUTIN DITO

The suspected illegal workers were said to comprise two men and four women, aged 26 to 58, and they were described as imported workers, which apparently meant they were recruited from overseas but were not hired through legal channels.

One man aged 59 and a woman aged 52 were also arrested on suspicion of hiring the illegal workers.

Separately, 23 locations including industrial and residential buildings and garages were targeted in similar operations. Six suspected illegal workers and two employers were arrested.

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Those held for working illegally were all women aged 28 to 55. Four of them held recognizance forms, signifying their attempt to prevent deportation; while the other two were in possession of forged HK identity cards.

Two men, both aged 37, were suspected of being their employers, and were also arrested.

Earlier, eight Mainland tourists were also arrested in a sting operation by Immigration officers for working illegally as photographers and make-up artists.

Two local residents were also arrested on suspicion of aiding and abetting the illegal work.

The Mainland residents comprising one man and seven women aged between 19 and 39, reportedly used social media platforms to offer outdoor photo sessions for fees ranging from $300 to $2000, with makeup services priced as little as $80.

Officers posed as customers and lured the suspects to Hong Kong where they were caught red-handed.

Tourists and anyone found working without permit from Immigration, including those on foreign domestic workers visas or hold recognizance papers, are liable to be sentenced to a maximum jail term of two years and a fine of $50,000.

The maximum jail term could go up to three years if the illegal worker is an overstayer or an illegal immigrant.

Those who possess or use a forged HK ID card could be jailed for up to 10 years and fined a maximum of $100,000.

Employers of illegal workers face as much as $500,000 in fine and imprisonment for up to 10 years.

Lying to Immigration lands Filipina in jail for 10 months

Immigration Department

Lying to Immigration officers has resulted in a 10-month jail sentence for a Filipina, who had earlier pleaded guilty at Shatin Court to two charges arising from her applications for domestic helper visas.

Acting Principal Magistrate Cheang Kei-hong sentenced Annabelle Isidro, 56 years old, to eight months in jail for “making a false representation to an Immigration Officer lawfully acting under or in the execution of Part III of the Immigration Ordinance.”

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The charge arose from Isidro lying when she declared to an Immigration officer on Nov. 5, 2022, when she was extending her stay, that she would work for a certain Chu Ka-kit.

Two years later, she conspired with a certain "Gege" in "dishonestly and falsely representing" to Immigration that she would work for a certain Choy Wa-yee, as a result of which she was granted another DH visa on December 2024 and was cut off on March 15, 2025.

The charge said she induced Immigration officerss to grant her permission to remain in Hong Kong "under circumstances in which they would not otherwise have granted such permission.”

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For committing a crime of "conspiracy to defraud," she was meted another eight months in jail by Magistrate Cheang.

But the magistrate ordered that only two months of the second sentence run after the first, resulting in a total sentence of 10 months.

DH jailed 5 weeks for 4 counts of shoplifting

 

The Filipina was sentenced at Fanling Court

A Filipina domestic helper was jailed for a total of five weeks after pleading guilty at Fan Ling Court to four counts of shoplifting.               

Ma. Jazel Cabab, 46 years old, was sentenced Friday to 12 days' imprisonment after she pleaded guilty in an earlier hearing to the first charge of theft, five weeks for the second, 10 days for the third and 20 days for the fourth.

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In handing down the sentence, Magistrate Kenneth Chan cited the principle of totality and ordered that all the prison terms meted on Cabab run at the same time, resulting in a total of five weeks.

The first theft charge arose after Cabab left without paying for four bottles of essences worth $1,178.80  that she took from a Mannings store In Yuen Long Centre last Aug. 14.

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In the second charge, she was accused of stealing one box of essence, six boxes of supplement and five boxes of medicines with a total value of $3,849 from a Mannings shop in Long Ping Estate in Yuen Long last Aug. 24.

Four days later, she stole one box of Mentholatum wrth $59.9 from another Mannings shop, this time located at Kau Yuk Road in Yuen Long.

She then moved a few minutes later to a nearby Watson store, also located at Kau Yuk Road in Yuen Long, and stole a bottle of skin cleanser worth $210.

Apart from imprisonment, Cayabyab faces a ban on working in Hong Kong again, after her expected deportation as soon as she finishes serving her sentence.

Filipina, US national arrested for allegedly running fake money syndicate

 

The seized counterfeit bills (Police handout)

A Filipino woman and an American man have been arrested in Wan Chai on Tuesday afternoon for allegedly running a syndicate printing fake HK$100 bills.

According to the West Kowloon Regional Crime Unit, officers raided a guesthouse on Hennesy Road in Wan Chai at about 1pm after receiving a tip-off, and arrested the two.

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During the raid, police seized 66 counterfeit HK$100 bills, along with tools used to print them, including a computer, an inkjet printer, metallic pigments, and paper with a texture similar to that used for genuine Hong Kong bills.

Printing equipment used to manufacture the fake bills

Further investigation reportedly revealed that the 50-year-old Filipina held recognizance papers, meaning she is applying to remain in Hong Kong and avoid deportation. With her was a 54-year-old man said to be a US national.

According to the police, the group ran by the two was connected to several cases last month in which counterfeit HK$100 and HK$500 banknotes were passed off as genuine, usually to pay for taxi fares.

The two suspects remain in custody while an investigation is ongoing.

High Court confirms 10-week sentence for theft after Pinay withdraws appeal

 

Place where alleged theft happened (Google Maps photo)

A Filipina who appealed to the High Court against her conviction for theft, for which she was sentenced to 10 weeks in jail, started serving her term Tuesday after withdrawing her appeal.

Lilibeth Fabros, 51 years old, sent a letter to the High Court last Aug. 12 saying she was withdrawing her appeal against an Eastern Court magistrate’s decision rejecting her defense that she actually owned the gold ring and gold necklace worth $1,000 in total that she was alleged to have stolen from her employer.

When asked by Deputy High Court Judge E. Lee to confirm her change of mind, she said yes.

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“Is that you decision?” he asked.

“Yes,” she answered.

“In that case, I am now dismissing your appeal and confirming your 10 -week sentence,” he concluded.

With the ruling, the $4,000 bail she posted at Eastern Court would be returned to her.

Fabros indicated through her duty lawyer after she was convicted last April 16, that she would appeal the decision to the High Court, on the ground that Magistrate Frances Leung did not give proper weight to her testimony.

The lawyer explained that Magistrate Leung instead gave more weight to the testimony of her alleged victim, Linda Chan, who claimed ownership of the two items but testified that the last time she saw them was in 1982, or 43 years ago.

Fabros was accused of stealing the ring and necklace from her employer at the latter’s flat in Dragon Garden, Tai Hang, on Nov. 15, 2021. 

“Her evidence is direct and fair. She has told us when and where she put her jewelry,” Magistrate Leung said in her ruling. “I cannot imagine why she would invent a story.”

On the other hand, Leung said she does not believe that Fabros was telling the truth when she claimed that she bought the two items at a bargain from a Filipino reseller in Central, packed in a resealable plastic bag, and had no receipt.

She noted that Fabros, who had a salary of $5,200 a month, testified that she was in financial difficulty at that time and could not explain during the trial how she could afford such a purchase.

Pinoy driver denies stealing bag from inside parked car

 

The alleged theft happened in the carpark of Aberdeen Marina Club (photo from Facebook)

Did he, or did he not?

This is the question that will be answered by Deputy Magistrate Wing-sze Chung on Sept 15, when she delivers her verdict in a theft case against Filipino driver Dionese V. Medallon, who has denied stealing a bag from an unlocked Tesla car parked inside the Aberdeen Marina Club on Jan 17 this year.

Medallon’s $1,000 bail has been extended until then.

According to the prosecution, 46-year-old Medallon had deliberately moved the Alphard van that he was driving at the time to the opposite space beside the Tesla, after seeing it unlocked. 

He then allegedly opened the car door and took away a brown handbag on the front passenger seat, which contained an Apple computer, a wallet with $2,000 cash inside, as well as the Tesla’s key which was left in the ignition, for a total loss of about $25,000.

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Medallon denied this, saying he just moved the car after going to the restroom at about 3:20 pm that day because it was very hot in the place where he was originally parked, despite it being a winter afternoon. 

He also said that when the CCTV camera in the carpark caught him standing beside the Tesla it was because he was wiping the front and back seat of the van where his employer usually sat.

The Filipino who has worked as a private car driver in Hong Kong since 2012, told the court he did not notice if the car beside him was unlocked, nor paid attention to its make.

About two minutes after Medallon was caught on camera standing between his van and the car, he drove away. The accused said it was because she had received a call from his employer’s helper telling him to drive to the entrance where she was waiting with her young ward, who had just finished with his taekwondo class.

His lawyer who had earlier failed to convince the magistrate to declare that Medallon had no case to answer, closed his argument by saying that while the defendant may have acted suspiciously, it was not enough to declare him guilty beyond reasonable doubt.

The lawyer pointed out that there was no direct evidence linking Medallon to the theft. His fingerprints were not found in the car, and there were no incriminating items seized by the police from his flat in Wan Chai when he was arrested for the theft on Jan. 20.

All that the police had taken from the flat were the black jacket and cap that he was seen wearing as he drove his van past the CCTV camera located by the carpark exit. These items were reportedly surrendered voluntarily by Medallon, who also did not resist when the police subsequently put him under arrest.

The lawyer also pointed out that the victim was partly to blame for the loss, as she had left the key to her unlocked Tesla inside the car while she went inside the building and was gone for about 20 minutes. She also failed to report the theft immediately, complaining to the Club only after 5pm, about an hour after she had left.

Giving testimony as the first witness for the prosecution, the Tesla driver said she had a habit of leaving her car door unlocked, and with the key inside the ignition, and that day was no exception. She turned off the engine but did not lock her car, before going inside the private club to pick up her daughter.

When she returned to the carpark, she said she was surprised to see the door locked, so she used the remote control that was with her, to get in. She said she did not notice anything amiss when she drove off with her daughter, and only realized later that her bag that was on the seat beside her was missing.

Another witness called by the prosecution was the lady guard at the Club, who was stationed at the carpark that day. She told the court that on the day in question, she noticed the car window slightly open, and the light on, so she immediately reported the incident to the control room.

She opened the unlocked door and as she saw no valuables inside, she decided to just lock the car, and resumed work.

On cross examination, the defense lawyer asked the guard if she was sure the car light was on and she said yes. However, the lawyer pointed to a statement she gave to the police only last Aug. 2 in which she said she did not notice if the car lights were on or off.

A police officer who arrested Medallon was also called to testify, and he confirmed that the defendant was cooperative when his flat was searched, and the black outfit he had worn at the Club three days earlier, was seized.

It was not clear why the police had taken seven more months before deciding to charge Medallon in court.

 

Philippine tourist arrivals in HK dip by 8.4% in July

 

The Big Buddha on Lantau is a big favorite among Filipino tourists

While tourist arrivals in Hong Kong have continued to soar since the pandemic, fewer visitors from the Philippines were recorded in July this year compared to last year.

Latest statistics supplied by the Hong Kong Tourism Board showed that a total of 94,753 visitors from the Philippines came last July, compared with 103,479 for the same month in 2024, for a 8.4% drop.

In contrast, June arrivals which were reported last month surged to 122,548, for an increase of 11.6% compared to the same month in 2024.

Meanwhile, the Immigration Department has just announced a new spike in visitor arrivals in Hong Kong, with about 5.03 million visitors coming in between August 1 and 30 this year.

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This marks a 16 percent increase, compared to about 4.33 million visitors for the same month last year.

Travelers from the Mainland still comprised the biggest number, with about 4.12 million arriving during the past month, 16% percent higher than the 3.56 million recorded in 2024.

The July drop in arrivals from the Philippines is the biggest in months, and was also the biggest decline recorded among the short-haul markets.

The next biggest drop in terms of percentage was recorded for Malaysia, at 5.9%.

In contrast, visitors from Taiwan, Japan, Thailand and most other Asian markets continued to come in droves.

The biggest increase was recorded for Japan, with 47.6% more tourists coming in for the first seven months of the year, at 46,721.

Next was Thailand, with an uptick of 30.7%, for a total tourist arrival of 40,934.

Third was Taiwan, where 25.4% more tourists arrived in Hong Kong.

However, the big number of people who visited from the Philippines in the first six months of the year more than made up for the July drop.  

Hence, from the period of January to July, the overall figure for visitor arrivals from the Philippines was still up by 18.7%, for a total of 773,379.

Also, in terms of actual figures, the Philippines continues to be a main source of visitors, with only Taiwan’s 883,712 tourist arrivals surpassing it.

Across the board, nearly 4.4 million tourists were recorded to have visited Hong Kong for the period, for a 12% increase.

The Mainland remained as the biggest source of visitors, with 3.5 million coming in from across the border, an increase of 11.8 %.

 

NGO calls for enhancing laws, training employers on MDW maternity rights

 

Pregnant MDWs often face unemployment despite protection from the law (PathFinders photo)

Hong Kong charity PathFinders, has called on the government to provide mandatory training for employers on the maternity rights of migrant domestic workers (MDWs), while enhancing policies so both employer and employee get help while the worker is on maternity leave.

At the same time, PathFinders said it is exploring the feasibility of adding a rider to MDW insurance policies to help employers cope with household management while the worker is on maternity leave.

These are the three major changes proposed by the non-government organization in a report it published yesterday, saying it found a number of systemic gaps that prevent employers from providing adequate protection for pregnant domestic workers.

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In the report, PathFinders said that while pregnant MDWs are legally protected from dismissal and are provided with maternity leave, they face many challenges at the workplace because for one, “employers lack resources to respond humanely or lawfully” to them.

Many employers are also not aware of the legal protection given MDWs who get pregnant while under their employ.

In its Employer Survey Report published in 2022, PathFinders said 51% of the respondents were unaware of the legal protection accorded pregnant MDWs, while a whopping 84% mistakenly believed they could terminate contracts if the MDW is pregnant. 

The new report, “Policy in the Home: Hong Kong Employers Confront Migrant Domestic Worker Pregnancy,” shows not much has changed since in terms of how employers respond to a pregnancy notification from their MDWs.

After in-depth interviews with four employers in the middle to upper middle class social brackets, PathFinders found gaps in their understanding of the law on maternity protection “that leave MDWs vulnerable to discrimination, unlawful termination and separation from their newborns.”

When asked what they would do if their domestic worker gets pregnant - given the legal limitations to contract termination, a live-out arrangement or getting temporary replacement- the employers’ responses did not bode well for MDWs.

One said she hoped for a “mutual agreement” to end the contract, another said Hong Kong is not the right place and time for MDWs to get pregnant, the third came up with an unfair financial settlement, while a fourth said she could imagine herself indirectly intimidating her helper into quitting.

Apart from requiring employers to undergo training on maternity protection for MDWs, PathFinders is also pushing for enhancing the law so MDWs remain protected even if they decide to give birth outside Hong Kong, while employers are guided on how they can seek temporary workers during the MDW's absence.

A maternity rider on MDW insurance should help the employer pay for the cost of having an extra hand while the worker is on maternity leave.

“Without practical solutions and policy reform, vulnerable MDW mothers and their children will continue to face unemployment, homelessness, and separation,” said PathFinders.

It urged the government, insurers, employment agencies and other stakeholders to consider its recommendations and work together to ensure a just and equitable work environment for MDWs. 

Ex-DH jailed 5 years and 3 months for drug trafficking

 

The drug trafficking case was heard at the High Court

A Filipina was sentenced by the High Court today to five years and three months in jail for trafficking 30.2 grams of methamphetamine hydrochloride or shabu, while her Bangladeshi co-accused was sentenced to six years and four months.

Chymbelyn Cadelina, 39 years old, and Bangladeshi Amit Foysal, 41, were arrested for having the drug in two plastic bags on the 13th floor of Mirador Mansion in Tsim Sha Tsui on Nov. 14, 2022 and have been in detention since.

Foysal initially planned to plead not guilty but changed his mind before both prosecution and defense lawyers could start a pre-scheduled Case Management Hearing, with a trial set for later.

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What made the 11-month difference between the two sentences were the discounts.

Judge S.T. Poon gave the usual one-third discount to Cadelina because she pleaded guilty at the first instance, but only gave a 5 per cent discount to Foysal because he insisted on his innocence until today.

An additional three months was deducted from both sentences to account for the fact that some of the drug seized from them may have been for their own consumption.

When the prosecutor asked about an overstaying charge against Cadelina, both Judge Poon and her defense lawyer said she had already served a five-month sentence meted for it by the Kowloon City Court on May 4, 2023.

She was convicted of “breach of condition of stay – overstay” for overstaying in Hong Kong for almost 10 years after her domestic helper visa expired on Nov 26, 2013.

58% of migrant domestic workers paid less than minimum, says MFMW

 

MFMW is among those regularly consulted by the Labour Dept on wage levels for migrants

The Mission for Migrant Workers has said in a statement that its recent survey showed that 58% of foreign domestic workers (FDW) in Hong Kong receive less than the mandated minimum allowable wage of $4,990.

The statement released Monday was in support of calls by various community organizations to raise the minimum allowable wage (MAW) for FDWs to $6,172, while rejecting a call for a freeze in wages by a pro-employers’ group.

The MFMW, the oldest support organization for migrant workers in the city, also supported calls to raise the food allowance for those who do not receive free meals from their employers, to  $3,123 a month.

Its statement said that its recent research, which has been updated periodically since 2018, “reveals troubling insights into the wage levels and financial hardships faced by MDWs.”

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Apart from showing that well over half of the workers receive less than the MAW, the study also revealed that 14%  of those who were underpaid were getting lower than the previous minimum wage of $4,870 a month.

A big percentage, or 26% of the workers, reported a negative balance in their monthly expenses, with the average deficit at around -9%.

On average, over 60% of their income is remitted abroad, and approximately 23% are burdened with loan repayments. Additionally, 5% incur agency fees, predominantly among new arrivals with less than one year in Hong Kong.

“These figures highlight that one in four workers faces expenses exceeding their income, trapping them in a cycle of debt and financial insecurity,” said the MFMW.

It was regrettable that Hong Kong has excluded FDWs from the minimum wage law, resulting in their persistently low wages, said the MFMW.

While there is an urgent need to improve the working conditions and legal protection of FDWs, it is equally critical to address the longstanding problem over their low pay, added the MFMW.

“Their wages must be increased substantially to reflect their essential role and to ensure their dignity and financial security,” said the MFMW’s statement.

 

Filipina DH cleared in $7.2 million theft

 

The Filipina was cleared at West Kowloon Court

A Filipina domestic helper accused with a Chinese driver of stealing three cheques with a total face value of $7.2 million, walked free today after the charge against her was withdrawn by prosecutors at West Kowloon court.

Marie Judith Frianela, 62 years old, had been in jail with her co-worker Wong Kong Hafee, 60, since they were arrested by the police on July 12 for the alleged theft of what the prosecutors called “a chose in action, a debt in the sum of $7,185,00 owed by Standard Chartered Bank to Lee Lai Chuen.”

Wong’s case  adjourned to Sept. 29 for completion of his transfer paper to the District Court.

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The two were initially charged with stealing three Standard Chartered cheques belonging to their employer, Lee Lai Chun, in his home at 64 Tat Chee Avenue, Sham Shui Po, between Dec. 15, 2023 and May 2 this year.

But the charge was later amended to stealing a "chose in action" or a debt in the amount of $7,185,000 owed by the bank to Lee, indicating the cheques had been cashed. 

Under section 9 of the Theft Ordinance, theft is punishable by up to 10 years in prison.

'Care to Caregivers' held at Victoria Park

Indonesian migrant workers line up for the free services

The Mission for Migrant Workers took its ‘Care to Caregivers’ service program to Victoria Park on Aug. 17, to join in the celebration of Indonesian Independence Day.

Various service providers under the MFMW offered free health services, including blood pressure and blood glucose checks, eye examinations, massages, and Chinese medical consultations the mostly Indonesian migrant workers who gathered at the park.

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The event not only promoted good health and the well-being of migrant domestic workers but also highlighted Indonesia’s rich culture through traditional dance performances and fashion showcases.

Volunteers who provided free services under the Care to Caregiver program included those from the Bank of America who provided a photo booth with fun games and from Enrich HK who gave snap lectures and advice on financial education.

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Free medical check-ups and health promotion were provided by teams from Medical Outreachers, Chinese Medicine for All, Hong Kong AIDS Foundation, and United Nethersole Community Health Services; while the Electrical and Mechanical Services Department (EMSD) of the Hong Kong government gave tips and information on safe gas use.

Care to Caregivers is a program conducted by the MFMW at different times in the year to honor  migrant workers’ contributions to Hong Kong by providing them with free services that promote their well-being, uplift and empower them, and foster community support to them.

 

No more loan referees, says PCG in proposed amendments to Money Lenders Ordinance

 

Vice Consul Gino Soriano (middle, in blue) with leaders of migrant concern groups 
consulted on the PCG's proposals for amending the law regulating money lending in HK

A host of proposals meant to enhance protection for migrant worker-borrowers, including doing away with referees for loans, has been submitted by the Philippine Consulate to the Hong Kong government  in response to a call for public inputs on proposed amendments to the Money Lenders Ordinance.

The two-month public consultation on the document issued by the Financial Services and Treasury Bureau (FSTB) of the Hong Kong Government aimed at further tightening regulation of licensed money lenders, ended last Aug. 22.

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In drafting its proposals, the PCG consulted about a dozen stakeholders, mostly non-government organizations that cater to MDWs. The resulting document reflected the general sentiment that MDWs need to be better protected against unscrupulous money lenders.

On the other hand, pro-employer groups like the Democratic Alliance for the Betterment of Hong Kong, have pushed for the amendments, saying a number of employers have been blackmailed by debt collectors into repaying money borrowed by their helpers.

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In its proposals, the PCG urged that money lenders be prohibited from asking borrowers to provide loan referees when applying for unsecured loans.

The PCG said that based on its own experience and that of various concerned groups, many MDWs in distress over loan problems were not the actual borrowers, but had been tricked or prevailed upon to sign as referees.

“The usual tactic employed by money lenders is to exert pressure on the loan referee to the point that he or she will be compelled to chase after the direct debtor for payment,” said the PCG in its response. 

FSTB’s consultation document merely proposes that referees be made to sign a document agreeing to such a role, and never to be made to pay in lieu of the borrower. Doing away with loan  referees was mentioned only in passing.

DAB officers say employers often bear the brunt of unpaid loans by their helpers

Apart from further strengthening regulation and enhancing public education about responsible borrowing and avoiding unscrupulous money lenders, the PCG’s other main proposals include:

1) Setting up a Victims’ Protection Mechanism to encourage more MDWs targeted by rogue money lenders and collectors to come forward and file complaints with the police, instead of cowering in fear, lest their jobs be put in peril;

2) Requiring all money lenders to join the Credit Data Smart (CDS) platform, with penal sanctions for non-compliance. In the past, some money lenders deliberately avoided joining the CDS so they could extend loans to MDWs far more than they could reasonably repay given their credit history;

3) Limit the amount that a MDW could borrow, but in any case, the maximum loan cap should be no less than $19,900 spread out over a 12-month period. This amount according to the FSTB’s own study, is the average loan amount secured by MDWs at present.

In the FSTB’s draft proposal, the amount that a MDW could borrow should be no more than what he or she earns in a month. Thus, those earning $5000 a month or less could only borrow this much each time. For those earning between $5,001 to $10,000 the maximum loan amount is twice the monthly salary. 

The alternative being proposed by the government is to set a limit of 35% of the borrower’s monthly salary as the repayment amount per month. 

Thus, an MDW earning the minimum monthly wage of $4,990 and has no outstanding loan should be paying a maximum of $1,750 each month. Assuming that the money lender charges an annual interest rate of about 30% and the repayment period is 12 months, the maximum amount of loan that can be extended to the MDW earning the minimum wage is $18,000.

The government proposes to limit the amount of loan to MDWs to no more than their monthly pay

According to the PCG, setting a higher loan cap could prevent MDWs seeking the help of loan sharks if the money they need to borrow is more than what is allowed under the new law.

Beyond tightening control over the operations of money lenders, the PCG also urged the  Hong Kong government to look into migrant workers’ call for a living wage, or one that will provide for their and their family’s basic needs, so they need not borrow money in case of emergencies. 

The PCG said that the various community organizations it consulted said the current minimum allowable wage of $4,990 is insufficient to address the migrant workers’ needs and has not kept up with the rising cost of inflation. 

“PCG HK notes that the Hong Kong government has consistently acknowledged the invaluable contribution of MDWs to its economy. In this regard, a reexamination of the MAW of MDWs is also a necessary component of a holistic approach in tackling unmanageable MDW loans,” said the PCG.