Gardenia Foods is shifting its bakery production from Singapore to Johor Bahru, Malaysia, resulting in the firing of 141 employees [1].
The move signals a strategic pivot for the bread manufacturer as it navigates rising costs and a volatile global economy. By relocating production to Malaysia, the company aims to lower overhead while maintaining its supply chain for the region.
The company announced the decision on May 20, 2024 [1]. Production at the Pandan Loop bakery plant in Singapore is scheduled to cease on June 30, 2024 [1]. The shift involves moving operations to a new facility located in Johor Bahru [2].
Gardenia Foods cited the need for better efficiency as the primary driver for the relocation. A Gardenia Foods spokesperson said the move is part of ongoing efforts to improve operational efficiency and remain competitive amid an increasingly challenging global environment [3].
The firing affects 141 workers [1]. The company stated that those affected will receive notice and support in line with local guidelines, with assistance from the Food, Drinks and Allied Workers Union, a spokesperson said [3].
The union is coordinating with the company to manage the transition for the workforce. A representative for the Food, Drinks and Allied Workers Union said the organization will work with Gardenia to provide career and training support for the affected staff [4].
This transition marks a significant change in the company's footprint within Singapore, moving from local manufacturing to a cross-border logistics model to sustain its market position.
“Gardenia Foods is shifting its bakery production from Singapore to Johor Bahru, Malaysia, resulting in the firing of 141 employees.”
This relocation highlights a growing trend of manufacturers moving labor-intensive production from Singapore to neighboring Malaysia to reduce operational costs. By utilizing Johor Bahru as a production hub, Gardenia Foods can leverage lower land and labor costs while remaining close enough to the Singaporean market to ensure the freshness of its perishable bread products.
