Metrocon chairman steps down after being charged over unlicensed worker dormitory

[SINGAPORE] The chairman of Catalist-listed Metrocon Alvin Lim has stepped down after being charged over the alleged operation of an unlicensed foreign worker dormitory.

In a bourse filing on Monday (Nov 2), the construction company said Lim resigned as its non-executive and non-independent chairman with effect from Oct 29 to attend to personal matters arising from the case.

Lim, 35, who is also the general manager of construction company LBD Engineering, intends to contest the charge and is seeking legal advice, the company added.

Lim and LBD were charged in court on Oct 29 under the Foreign Employee Dormitories Act 2015.

LBD is accused of operating the premises as a foreign worker dormitory without a valid licence between July 2025 and January 2026. Lim faces a separate charge over allegedly knowing LBD did not have a valid licence but allowing it to continue operating the dormitory.

According to the Ministry of Manpower (MOM), an inspection on Jan 6 found that the premises had about 300 bed spaces and housed 173 migrant workers from four companies.

Under the Foreign Employee Dormitories Act, operating a dormitory without a valid licence carries a fine of up to S$500,000, imprisonment of up to two years, or both. MOM said in an Oct 29 statement that unlicensed dormitories could put migrant workers’ safety and well-being at risk.

LBD is a controlling shareholder of the listed company and Lim was its chairman, but the listed company said neither the company nor its subsidiaries has been charged, and that the case is not expected to materially affect its operations or financial performance for FY2026.

The board noted that Lim served in a non-executive capacity and was not involved in the group’s day-to-day operations.

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It added that the charge relates solely to LBD’s dormitory premises and is not expected to materially affect the construction company’s ongoing projects. LBD’s business transactions with Metrocon also remain unaffected, the company said.

Metrocon said MOM had directed LBD to relocate all occupants by Jan 9, and that the company complied within the stipulated timeframe.

Lim was subsequently interviewed by MOM on Oct 2 and released on bail. Metrocon’s board said it was informed of the matter only on Oct 29.

The company explained that Lim had not notified the board earlier as he did not consider the inspection and subsequent investigation to trigger disclosure obligations, given that they concerned LBD rather than Metrocon.

The company said Lim and its non-executive director Charlotte Tay had not informed the board or its sponsor of their earlier dealings with MOM, as they did not consider the matter to trigger disclosure obligations given that it concerned LBD rather than Metrocon.

Tay, a former director of LBD, had attended an MOM interview in August to assist with investigations. No charges have been brought against her, Metrocon said.

The chairman position will remain vacant while Metrocon searches for a replacement. In the interim, board meetings will be chaired by lead independent director Sim Mong Keang or another director elected by the board.

Lim has indicated that he wishes to be considered for reappointment after the legal proceedings conclude, subject to the company’s assessment and regulatory requirements.

The next court hearing is scheduled for Dec 17.