Founder of The Malayan Council sentenced for falsifying work pass applications and illegal employment

Mohamad Hafiz Bin Salim Alkhatib, the 38-year-old founder of the popular restaurant chain The Malayan Council, has recently been sentenced to 29 weeks’ imprisonment and fined $22,000 for multiple offences under the Employment of Foreign Manpower Act (EFMA) after he pleaded guilty earlier in court on 27 August.

Hafiz, who owns H. Alkhatib, the business behind The Malayan Council, faced a total of 41 charges related to false salary declarations and illegal employment.

In 2019, he was accused of having falsely declared the salaries of 13 foreign workers to meet the salary criteria for S-Pass and Employment Pass applications. These workers held positions ranging from restaurant managers and supervisors to customer service executives across The Malayan Council's four outlets at Dunlop Street, Bussorah Street, Winstedt Road, and Esplanade Mall.

In one instance, Hafiz paid an employee S$200 less per month than the declared salary between February and August 2019. Additionally, he instigated 13 workers to lie to MOM about their salaries during the investigation and attempted to persuade Ms Sheikhah Mumtaz Sheikh Mustafa, the director of The Malayan Council, to lie to the authorities on three separate occasions.

The case also revealed that Hafiz had employed two foreign workers without valid work passes at The Malayan Council’s Bussorah Street outlet in 2019.

This case has drawn significant attention due to the popularity of The Malayan Council, known for its Malay-Western fusion dishes and its signature Ondeh-Ondeh cake, which has received widespread acclaim.

The Ministry of Manpower (MOM) highlighted the case in a Facebook post on Tuesday, emphasizing the severe consequences of violating employment laws in Singapore and urged the public to report any suspicions of illegal employment.

The Ministry also noted that he was found to have illegally employed two workers as dishwashers without valid work passes and deducted $1,700 from another worker’s salary as a condition of employment.

MOM’s post emphasized that employers who violate the EFMA face significant penalties, including fines and imprisonment. The Ministry also encouraged the public to report any suspicions of illegal employment to help protect workers' rights.

Starting 1 January 2025, the minimum qualifying monthly salary for new EP applicants will increase from S$5,000 to S$5,600, with higher thresholds for those in financial services.

The S Pass, which allows employers to hire skilled workers who may not meet the EP criteria, will continue to have a minimum qualifying salary of S$3,150, though no changes to the qualifying salary or levy will occur in 2024. However, these will be increased in 2025 as part of previously announced stepped adjustments in Budget 2022.

These adjustments are part of ongoing efforts to align the cost of hiring EP holders with the top one-third of local professionals, managers, executives, and technicians (PMETs).