Japan Foods unit suspended from applying, renewing work passes on MOM investigation

JAPAN Foods Holding ’s subsidiary, Japan Foods Enterprises (JFE), is suspended from applying for and renewing work passes as the Ministry of Manpower (MOM) has launched an investigation into its hiring and payroll practices involving foreigners.

Announcing this in a bourse filing on Tuesday (Oct 4), the Catalist-listed restaurant operator said that the company understands the investigation relates to “certain past hiring and payroll practices”, which have since ceased.

“As the investigation is still ongoing, until further notice from the MOM, JFE has been suspended from applying new work passes and renewing existing work passes,” the group said.

To deal with the suspension, Japan Foods Holding said that it would have to streamline operational work-flow at its outlets and employ more part-timers and contract staff. JFE will also work on “right-balancing” its workforce, it added.

But these do not mean that any of the group’s existing operating outlets will have to be shut temporarily, it stated.

It will, meanwhile, “cooperate fully” with MOM’s investigation, it said, adding that the Board will monitor its progress and update shareholders as and when material developments arise.

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Takahashi Kenichi founded Japan Foods Holding in 1997, and is executive chairman and chief executive officer of the group. Brands under the company include Afuri, Ajisen Ramen and Fruit Paradise.

Shares of Japan Foods Holding closed flat at S$0.42 before the announcement.