09/04/2026 | Press release | Distributed by Public on 09/03/2026 21:08
On 2 September 2026, the Ministry of Manpower (MOM) arrested four subjects for suspected employment-related offences during an enforcement operation.
2 The four subjects comprised two company directors and two company staff from the construction sector. MOM is investigating these individuals for suspected offences under the Employment of Foreign Manpower Act (EFMA), such as false declarations and collection of employment-related kickbacks.
3 The directors are suspected of making fraudulent Central Provident Fund (CPF) contributions to locals who are not under their employment (i.e. "phantom workers"), to inflate the foreign worker quotas of their companies. Thereafter, they brought in migrant workers through the inflated foreign worker quotas. Another 21 subjects are currently assisting in the investigation, for suspected involvement in such illegal "phantom worker" arrangements.
4 MOM will continue to take action against companies that are suspected to have inflated their foreign worker quotas through such illegal practices.
Penalties for Employment Offences
5 Under the EFMA, making false declarations in work pass applications carries a fine of up to $20,000, an imprisonment term of up to two years, or both. MOM will also bar entities or individuals convicted of such offences from employing foreign workers. Persons who collude with companies by providing their particulars for fraudulent CPF contributions to inflate foreign worker quotas may also be prosecuted for abetment of false declaration, which carries a fine of up to $20,000, an imprisonment term of up to two years, or both. The collection of employment-related kickbacks is an offence punishable with a fine of up to $30,000, an imprisonment term of up to two years, or both.
6 MOM would like to remind members of the public not to accept CPF contributions from businesses they are not working for, as they may be guilty of aiding in false declaration offences by errant employers. Members of the public who are aware of such activities, or who know of persons or employers who may have contravened the EFMA, should report the matter to MOM through its eService, "Report an infringement". All information provided will be kept strictly confidential.