Singapore Authorities Arrest Four Over 'Phantom Worker' Scheme in Construction Sector

Singapore's Ministry of Manpower (MOM) has arrested four individuals from the construction sector for their alleged involvement in a 'phantom worker' scheme aimed at inflating foreign worker quotas. The arrests, which took place on September 2, 2026, include two company directors and two company staff members. An additional 21 individuals are assisting with the ongoing investigation.

The scheme involved the directors making fraudulent Central Provident Fund (CPF) contributions to locals who were not actually employed by their companies. By doing so, they artificially increased their companies' foreign worker quotas, allowing them to hire more migrant workers than legally permitted. This practice not only violates employment regulations but also undermines the integrity of Singapore's labor market.

Under the Employment of Foreign Manpower Act (EFMA), making false declarations in work pass applications carries severe penalties, including fines of up to S$20,000, imprisonment for up to two years, or both. MOM has stated that entities or individuals convicted of such offenses will be barred from employing foreign workers in the future.

MOM has also issued a reminder to the public not to accept CPF contributions from businesses they are not working for, as this could implicate them in aiding false declaration offenses. The ministry encourages individuals who are aware of such activities to report them through official channels.

This case highlights the government's commitment to maintaining a fair and transparent employment landscape in Singapore. By taking decisive action against fraudulent practices, authorities aim to protect the rights of workers and uphold the integrity of the nation's labor policies.