In a decisive move that underscores Singapore’s commitment to safeguarding the integrity of its labour market, the Ministry of Manpower (MOM) announced on October 16 that ten individuals have been charged in two separate cases involving false declarations linked to Central Provident Fund (CPF) contributions and salary records. The charges, filed on October 8, mark the latest chapter in the authorities’ ongoing battle against employers who attempt to bend the rules for financial gain. For many Singaporeans, the CPF is more than just a savings scheme—it is the bedrock of retirement security, healthcare financing, and home ownership. When an employer manipulates CPF contributions, they are not merely filing inaccurate paperwork; they are undermining a social contract that generations have relied upon. The MOM’s statement paints a sobering picture of deceit: companies allegedly declared CPF contributions for “phantom workers,” individuals who never actually worked for them, in order to create the false impression that they had enough local employees to qualify for foreign worker quotas. This is not a victimless crime. Every fraudulent declaration chips away at the fairness of Singapore’s employment framework, potentially depriving genuine local workers of opportunities and distorting the competitive landscape for honest businesses.
The first and larger of the two cases involves eight people: seven employers and one administrative assistant, all aged between 31 and 61. They were charged under the Employment of Foreign Manpower Act (EFMA) for allegedly making false declarations in work pass applications. The accused include Hou Ruisheng, a 43-year-old Singaporean director of Harvest Ecotech; Cao Yongliu, a 52-year-old Chinese director of Blue Sky Builder; Wei Yan, a 48-year-old Chinese director of Anchang; Wang Jianheng, a 61-year-old Singaporean director of Advanced Coretrades; Lin Jian, a 37-year-old Chinese sole proprietor of Wang Da Construction; Zhao Ying, a 45-year-old Chinese director of Urban Builders; Chen Pengfeng, a 37-year-old Singaporean director of He Jian Construction; and Yvonne Teo Peck Ling, a 31-year-old Singaporean administrative assistant at He Jian. Each of them is accused of submitting work pass applications containing false declarations, essentially using the names and identities of people who were not bona fide employees to bolster their companies’ local headcounts. This practice is widely known as creating “phantom workers” — a term that may sound technical, but behind it lies a very human story. Some of these phantom workers were likely ordinary people who were persuaded to lend their identities for a small fee, or perhaps even unknowingly caught up in a web of deception. In one particularly troubling allegation, Hou Ruisheng is also charged with obstructing an employment inspector by directing a person to sign backdated and falsified employment documents, thereby providing false information about the individual’s actual employment status. This suggests a deliberate and calculated effort to cover up the fraud when authorities came knocking. The MOM did not stop at the employers and the administrative assistant; it also imposed administrative financial penalties on three phantom workers who fraudulently received CPF contributions despite not working for these companies. These individuals, by accepting money they did not earn, effectively helped the companies inflate their foreign worker quotas. They may have thought they were getting an easy windfall, but in doing so, they became complicit in a scheme that corrupted the system from within.
The second case takes a different but equally serious form of deception. Two people who operated an Ayurvedic centre were found guilty of making false salary declarations under the EFMA. They had hired two Employment Pass holders, but instead of paying them the salaries that had been officially declared to the authorities, they paid them far less. The two workers were declared as earning monthly salaries of $5,100 and $7,350 respectively, yet in reality, they received between $800 and $2,300 a month. This is more than a bureaucratic discrepancy; it is a profound betrayal of trust. Employment Pass holders come to Singapore from abroad with hopes of building better lives for themselves and their families. They often leave behind their homes, their support networks, and everything familiar, trusting that the promises made in their employment contracts will be honoured. To discover that their actual wages are a fraction of what was declared means they have been deceived in a way that can leave them financially stranded in a foreign country, unable to pay for housing, food, or even the return ticket home. The underpayment of salaries is also a form of exploitation that undercuts the very purpose of work pass regulations, which are designed to ensure that foreign professionals are compensated fairly and that Singapore’s labour market remains attractive and competitive. The two operators of the Ayurvedic centre were found guilty and will be sentenced at a later date, but the damage to the two workers’ livelihoods—and their faith in the system—cannot be undone by a court verdict alone.
The legal consequences for such offences are severe, and the MOM is clearly intent on sending a message that they will not be tolerated. A person convicted of making false declarations in work pass applications can be fined up to $20,000, jailed for up to two years, or both. Those who obstruct investigations face the same penalties. Phantom workers who provide their personal particulars to facilitate fraudulent CPF contributions can also be prosecuted and face the same punishments. Moreover, the entities or individuals convicted of these offences may be barred by MOM from employing foreign workers altogether—a potentially devastating blow to any business that relies on foreign labour. For the accused in these cases, the road ahead will be difficult. Legal fees, public scrutiny, and the possibility of imprisonment loom large. But perhaps the greatest consequence is the loss of reputation and trust. In Singapore, where the rule of law is taken seriously, being labelled as an employer who cheats the system can permanently tarnish one’s standing in the business community. The MOM has made it clear that it has stepped up investigations into suspected cases and will take firm enforcement actions against errant parties. This is not just about punishing those who have already been caught; it is about deterring others who might be tempted to follow the same path. The ministry’s heightened vigilance means that the days of getting away with such schemes are numbered. Employers who are currently engaging in fraudulent practices should take note: the risk of being caught is rising, and the cost of being caught is higher than any short-term gain they might have enjoyed.
Beyond the punitive measures, the MOM’s statement also serves as a reminder to the general public. The ministry urged people not to accept CPF contributions from employers they are not working for, warning that doing so may constitute abetment of false declaration offences or abetment of the prescribed infringement of inflating a foreign worker quota. This is an important point, because not everyone who becomes involved in such schemes is an employer or a company director. Sometimes, an ordinary person is approached by a friend, a relative, or an acquaintance who says, “Just lend me your name, and you’ll get some extra money in your CPF account.” It can be tempting, especially in difficult economic times, to accept what appears to be free money. But there is no such thing as a free lunch. By accepting CPF contributions for work they never performed, individuals are actively participating in a fraud that undermines the entire system. They may not think of themselves as criminals, but in the eyes of the law, they are just as culpable as the employers who orchestrated the scheme. The MOM is urging members of the public to think twice, to consider the long-term consequences of their actions, and to understand that even a seemingly small act of dishonesty can have ripple effects throughout the economy. For those who are aware of such activities, the ministry has made it easy to report wrongdoing through the “Report an Infringement” eService. All information provided will be kept strictly confidential, allowing people to come forward without fear of retaliation. It is a call to collective responsibility—to be a society where fraud is not tolerated, and where everyone plays a part in protecting the integrity of Singapore’s labour policies.
In the end, these two cases are about more than just penalties and prosecutions. They are about the kind of society Singapore wants to be. At its core, the system of CPF contributions and work passes is designed to strike a delicate balance: to protect local workers, to welcome foreign talent, and to create a stable environment for businesses to thrive. When employers lie to the government, they are not just breaking the law—they are disrespecting every honest employer who plays by the rules, every local worker who competes for a job, and every foreign worker who comes to Singapore in good faith. The stories behind these charges are human stories: a director who thought he could game the system, an administrative assistant who perhaps felt pressured to follow orders, a phantom worker who saw an easy opportunity, and an Employment Pass holder who was underpaid and undervalued. Each of these individuals has a story, but their stories intersect in a web of deceit that the MOM is determined to untangle. As Singapore moves forward, the hope is that these enforcement actions will serve as a deterrent, reminding everyone that honesty and integrity are not optional extras but essential foundations of the workplace. The ministry’s resolve is clear, and its message is simple: fraud will not be tolerated, and those who engage in it will be held accountable. For the ten people charged, their futures now hang in the balance. For the rest of us, this is a moment to reflect on the values we share and the responsibility we all bear to uphold them. After all, a system is only as strong as the people who support it, and every act of honesty, no matter how small, helps to build a fairer and more just society for all.