25-1-2025 (SINGAPORE) Eleven individuals, including construction company directors, have been arrested for allegedly falsifying workforce information to exploit foreign worker quota regulations, the Ministry of Manpower (MOM) revealed yesterday.
The sweep, which encompassed 37 locations across the island, led to the detention of five Singaporean construction firm directors, aged 42 to 57, who managed eight different companies. Additionally, six other individuals—four Singaporeans and two permanent residents—were apprehended for allegedly abetting the fraud scheme.
According to MOM investigators, the companies are accused of making fraudulent Central Provident Fund (CPF) contributions for Singaporeans and permanent residents who had no genuine employment relationship with the firms. This deceptive practice was reportedly orchestrated to artificially inflate local employment numbers, thereby allowing the companies to hire more foreign workers under existing quota guidelines.
The construction sector’s regulatory framework stipulates that firms may employ five work permit holders for each local employee earning at least the Local Qualifying Salary. The accused directors allegedly orchestrated a scheme where they approached individuals, offering financial incentives in exchange for using their personal information to create fictitious employment records.
A further 16 individuals are currently under investigation for similar offences, signalling the widespread nature of such fraudulent practices within the industry.
Legal experts note that those found guilty of providing false information in work pass applications face severe penalties, including fines of up to $20,000, imprisonment for up to two years, or both. Moreover, convicted employers risk permanent disqualification from hiring foreign workers, while implicated foreign workers could face employment bans in Singapore.
The ministry emphasised that individuals who consent to serve as “phantom employees” by allowing their personal information to be used for CPF contributions to fulfil work pass requirements will also face prosecution.
