Ministry of Manpower & BCA issue warning against phantom hiring in Singapore's construction sector

Fines totalling S$225,000 were imposed on individuals and companies who breached the Employment of Foreign Manpower Act by hiring phantom local workers in 2024.

Singapore's Ministry of Manpower (MOM) and the Building and Construction Authority (BCA) have issued a second reminder to all construction companies to adhere to the rules under the Employment of Foreign Manpower Act (EFMA).

Last year, four construction companies were found to have made false Central Provident Fund (CPF) contributions to locals who did not perform work in those companies to increase the qualifying foreign worker quota. As a result, fines totalling S$225,000 was imposed on the individuals and the companies. The companies were also barred from hiring migrant workers.

Earlier this year in January, authorities conducted inspections on companies suspected of similar acts in 37 locations, arresting 11 people — five of which were local directors from eight construction companies, four locals, and two permanent residents who allegedly abetted the directors.

Hiring phantom workers is against the EFMA, and the authorities have affirmed that MOM will take serious action against companies that are found performing such acts. Companies’ registration on BCA's Contractors Registration System (CRS) may also be affected. Those who are aware of phantom worker activities or other offences will be able to report them through MOM’s website.

MOM and BCA encouraged companies to seek alternative ways to increase productivity instead of attempting to get around the law. Companies may consider exploring progressive methods such as adopting robotics, automation, and productive technologies, as well as upskilling their workforce to reduce their manpower demand.

This, it was highlighted, will not only improve productivity but also help companies remain competitive and thrive in the industry.

Employers may visit BCA's website for more information on existing productivity support measures, in order for a smoother transition.

READ MORE: MOM on exemptions granted to employers from the overtime limit under Singapore's Employment Act