Another usual same ol' shit spewing out from his CB mouth. CB Kia Kee Chiu let me explain to you in simple terms how these FTs in collaboration with their companies exploit this loophole.
Ah Neh go interview with this local company. Boss agrees to hire Ah Neh on S Pass but on one condition. Company gives Ah Neh basic salary of 2.5K a month. During signing of letter of appointment, stated salary is 2.5K. But behind the scenes, Boss tell Ah Neh salary time on 25th every month, he will get his 2.5K salary. But after withdrawing his salary, Ah Neh must return $1000 to his company. So Ah Neh actual salary is just 1.5K a month but not 2.5K as stated in the agreement papers. Ah Neh willing to agree to this deal since he won't get a job that pays him even $1000 Singapore dollars back in India. This is a hush hush agreement between the 2 parties. All these local bosses exploiting this loophole, all of them are confident that these Ah Nehs won't complain to MOM.
This sort of practice is very common in the marine construction industry... I'm sure it's widely practiced too in the other industries.