As the government plans to enforce a two-tier policy to stop boats carrying asylum-seekers, the opposition says asylum-seekers are now in a “twilight zone” on Papua New Guinea's Manus Island, with a distant chance to resettle in Australia.

Around 800 new boat arrivals would be taken to Malaysia for processing while Australia would be accepting 4000 people who are granted refugee status there. This is included in the announced May 7 deal.

Malaysia seemed to drift away from the agreement when Malaysia's Home Minister Datuk Seri Hishammuddin Hussein allegedly said that this country will not accept a boatload of 32 asylum-seekers who arrived on May 14.

According to The Malaysia Star, ''On reports that a boatload of 32 asylum-seekers temporarily housed at Christmas Island before being sent to countries such as Malaysia ... Hishammuddin said the batch was not part of the transaction as the deal had not been finalized.”

Prime Minister Julia Gillard emphasized that the agreement was never changed.

In contrast to what the prime minister announced, Scott Morrison who is the opposition immigration spokesman said the government's policy was loosening.

''Immigration Minister Chris Bowen does not have any agreement with any country, including Malaysia… ''As a result, we are in some sort of policy twilight zone,'' Morrison told Sky News.

Immigration Minister Chris Bowen yesterday agreed Australia could accept refugees who were processed on Manus Island, but motioned that other options would be explored first and that no time limit would be placed on their being held on the island.

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