Recruiting & Onboarding
Singapore MoM arrests 10 in work pass fraud involving ‘phantom workers’

Offenders face fines of up to S$20,000, jail terms of up to two years, suspension of work pass privileges, and foreign workers involved may be barred from working in Singapore, according to Singapore’s Ministry of Manpower.
The Ministry of Manpower (MOM) has arrested 10 individuals for their suspected involvement in fraudulent work pass applications, following an island-wide enforcement operation conducted on March 31, 2026.
According to MOM, those arrested include directors and employees from five construction companies. Another 41 individuals are currently assisting with investigations related to suspected illegal employment arrangements.
Authorities are also investigating Central Provident Fund (CPF) contributions involving more than 40 additional individuals linked to the companies under scrutiny.
Phantom worker scheme to inflate foreign hiring quota
Investigations revealed that the companies allegedly made CPF contributions to Singapore citizens and permanent residents who were not actually employed by them, a practice commonly referred to as using “phantom workers.”
In Singapore, companies must maintain a certain ratio of local employees to foreign workers before they can hire foreign manpower.
By making CPF contributions to non-employees, the companies allegedly inflated their local workforce numbers, allowing them to qualify for a higher quota to hire foreign workers and submit work pass applications fraudulently.
Penalties under Singapore law
Under Singapore’s Employment of Foreign Manpower Act, individuals convicted of making false declarations in work pass applications face significant penalties.
Offenders may be fined up to S$20,000, jailed for up to two years, or both. Companies may also have their work pass privileges suspended, and foreign workers involved may be barred from working in Singapore.
Authorities added that individuals who knowingly allowed companies to use their personal details for fraudulent CPF contributions could also face prosecution.
MOM has urged members of the public to report illegal employment practices, including cases where individuals receive CPF contributions from companies they do not work for, assuring that all information provided will remain confidential.
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