Malaysian companies who hire out Indonesian maids are ignoring a cap on fees and are still charging almost three times the approved amount, reports said today.

Errant maid agencies were charging fees of up to RM6,000, exceeding the government's cap of RM2,415, said deputy home affairs minister Tan Chai Ho.

"We will investigate and act against the maid agencies involved, including revoking their operating licence," Tan was quoted as saying in the Star daily.

After years of negotiations, Malaysia and Indonesia in May signed a memorandum of understanding spelling out the treatment and rights of Indonesian domestic workers.

The deal requires employers to sign personal contracts with their maids stipulating the wages agreed upon by both parties, and also set a cap on agency fees.

Tan said employers had complained that some agencies were charging RM2,400 in miscellaneous fees, including levies for medical check-ups for the maids, and a further RM1,400 for brokering agencies in Indonesia.

Employers are also paying off some RM2,450 that maids take in loans from Indonesian agencies to fund their journey to Malaysia, according to reports.

Tan laid the blame on the Malaysian Association of Foreign Maid Agencies (PAPA) for not enforcing the government's capped fees.

He said in the New Straits Times that "PAPA is allowing their agencies to go against the agreement between Malaysia and Indonesia."

Malaysia employs some 350,000 foreign maids, 95 percent of whom are Indonesians. There are also some 20,000 Filipino maids, who are often valued for their ability to converse in English.