Geoffrey Williams of the Malaysia University of Science and Technology said there was no guarantee that such infringements would not recur.

“It will damage Malaysia’s image if the government cannot guarantee their (workers) safety and contracts,” he told FMT, adding it could also gain Malaysia a reputation of disrespecting agreements at an international level.

Williams said the ban and the issue that led to it would have wider repercussions if it is not resolved immediately.

“This is because the rule of law is fundamental to a properly functioning economy,” he said.

Indonesia had imposed a temporary freeze following the Malaysian immigration department’s continued use of the Maid Online System (MOS) to facilitate the recruitment of maids, a practice Jakarta wanted to end because of the risk of forced labour.

It said this was a “total breach” of the MoU signed on April 1 on the placement and protection of Indonesian maids.

Despite home minister Hamzah Zainudin playing down the issue by claiming that Putrajaya could still source foreign labour from 15 other countries, Williams said it would not be that easy.

He said Malaysia had become less attractive in economic terms for foreign workers because of poor salaries, high agency fees and ineffective legal protection.

In labelling Hamzah’s statement as “arrogant”, DAP’s Charles Santiago said other source countries would observe what had happened and would impose stricter measures to protect their workers.

“These countries may even stop sending them to Malaysia as the government could not be trusted,” he said.

North-South Initiative executive director Adrian Pereira said Hamzah was not only undiplomatic but did not understand the labour market at a time when companies were in desperate need of foreign workers.

“Indonesians are the closest to understanding Malaysian culture so they will be easy to manage when they come to work, especially with our similar languages, as compared to Bangladeshi workers.

“The ministry is holding businesses at ransom,” he said.