Assessing Employment Practices and Financial Health of Related Entities As A Group and Identifying Warning Indicators Preceding Large-scale Unpaid Salary Cases

Dr Choo Pei Ling asked the Minister for Manpower (a) whether the Ministry has identified common warning indicators preceding large-scale unpaid salary cases; (b) whether the Ministry has assessed if business structures involving multiple related entities present additional worker protection challenges; and (c) how the Government can better anticipate and mitigate the impact of such cases on affected workers.

Members have filed these Parliamentary Questions (PQs) likely in response to the case where KPA Engineering, SK Industries and VVR Plant Engineering did not pay salaries for a large group of their workers, and I am taking these PQs together to provide a more holistic response.

We share Members' concern for the affected migrant workers and empathise with the anxiety and financial hardship of the workers and their families. Let me first recap the facts of the case and provide an update on how my Ministry is working to resolve it, together with our stakeholders.

On 22 June 2026, 196 migrant workers from KPA Engineering and SK Industries approached the Ministry of Manpower (MOM) with unpaid salary claims. On the same day, the Tripartite Alliance for Dispute Management (TADM) and MOM immediately stepped in to assist the workers in lodging salary claims, conducting well-being checks, and addressing their food and housing needs. Over the subsequent days, more workers approached MOM, including workers from VVR Plant Engineering, and we also extended assistance to these workers. A total of 407 salary claims has been filed against the three companies. MOM has commenced investigations into the three companies for offences under the Employment Act (EA) and the Employment of Foreign Manpower Act (EFMA).

Currently, MOM is focused on ensuring the well-being of the affected workers and investigating the matter thoroughly so that we can take appropriate enforcement action. We have rehoused all affected workers who require alternative accommodation. We have also issued all workers with Special Passes to allow them to remain in Singapore while they search for new employment. More than 130 workers have found jobs with new employers. We will continue to work with the Migrant Workers' Centre (MWC) and the Singapore Contractors Association to facilitate transfers for the rest of the workers should they wish to continue working in Singapore. TADM has processed the majority of claims from the affected workers and referred them to MWC for financial assistance. MWC will extend financial assistance to the affected migrant workers via its charity arm, the Migrant Workers' Assistance Fund, depending on the circumstances of each case, and this would address a good portion of their owed salaries.

The director of the three companies, Mr Ramu Palani Velu, is currently assisting with investigations. MOM will thoroughly investigate the case and decide on appropriate enforcement actions after investigations have been completed.

Members asked about MOM's risk monitoring and enforcement approach to protect workers. Non-payment and late payment of salaries are offences under the EA and the EFMA. MOM proactively monitors salary-related risks using indicators, such as worker feedback and salary claims, late payment patterns via payment records, levy defaults, and other signs of financial or employment irregularities. Where these indicate a pattern of delayed or unpaid salaries, MOM conducts targeted inspections to identify if there have been any employment breaches.

In some cases, employers may miss salary payments due to short-term cash flow issues. Once this is detected, MOM would engage the employers. Where employers face genuine difficulties and act responsibly to resolve them, we give them a chance to resolve their issues and make good their obligations so that they can continue operations and sustain employment for their workers. However, where there is deliberate or prolonged evasion or misuse of corporate structures, we will take firm action. Employers who fail to pay salaries may face fines of between $3,000 and $15,000 per charge, imprisonment of up to six months, or both.

For the ongoing case, TADM had been approached about salary non-payment by five workers from KPA Engineering, individually, and at different points in 2025. Following assistance from TADM, all cases were resolved within a week with the workers receiving payment from the employer. There were claims filed in May and before 22 June 2026 by four other workers from KPA Engineering, which were in the midst of being processed. MOM curtailed KPA Engineering and VVR Plant Engineering's work pass privileges in April and early-June 2026 respectively due to levy defaults. This means that the companies have not been able to hire new foreign workers since then. While SK Industries had also defaulted on their levies previously, their work pass privileges were reinstated after the owed levies had been paid up.

On 8 June 2026, MOM was also informed of a dormitory eviction notice affecting many KPA Engineering employees and we stepped in to assist the affected workers and understand the situation. At this point, we also spoke to the workers and found that many of them were facing salary delays. We then took steps to contact the company directors, prior to the group of 196 workers approaching MOM on 22 June 2026.

Members asked about cases where salary non-payment occurs across companies with a common director. When investigating a company, if the director is found to be in breach of employment obligations, MOM will typically investigate other companies under the same director. If there is non-payment across multiple companies, the director can be subject to penalties for all cases, and all instances of non-payment will be considered in meting out penalties. MOM will look beyond individual companies to examine who exercises effective control over employment and payment decisions and take enforcement action accordingly.

Protecting all workers and ensuring they are paid their salaries on time is a priority for the MOM. MOM will continue to review and strengthen our processes and safeguards to do so, incorporating the lessons from the ongoing case.