Gardenia says decision to move production out of Singapore 'goes beyond cost-cutting'
"It is a strategic step in response to business continuity, labour constraints, and the need for industrial land for large-scale production," a Gardenia spokesperson told CNA.
by Daphne Yow · CNA · JoinRead a summary of this article on FAST.
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SINGAPORE: Bread manufacturer Gardenia told CNA on Wednesday (May 20) that its decision to shift its bakery production from Singapore to Malaysia "goes beyond cost-cutting".
"It is a strategic step in response to business continuity, labour constraints, and the need for industrial land for large-scale production," said a Gardenia spokesperson when asked about specific issues that led to the shift.
"The move strengthens our supply chain resilience, improves operational flexibility, and positions Gardenia for sustainable long-term growth."
Gardenia announced earlier on Wednesday that it is moving its bakery production to Johor Bahru. The move will result in the retrenchment of 141 employees at its Pandan Loop manufacturing facility, and production there will cease on Jun 30.
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The company added that Singapore will remain its central hub for key functions such as brand management, product development, quality and regulatory oversight, daily distribution and supply chain operations.
Its Singapore team, which will have about 250 people after the transition, will also continue to oversee quality governance and ensure compliance with requirements set by the Singapore Food Agency and the Health Promotion Board.
Earlier, the company had said that the move is part of ongoing efforts to improve operational efficiency and remain competitive amid an increasingly challenging global environment.
The Gardenia spokesperson told CNA: "By leveraging regional capabilities, including the group’s Johor facilities, Gardenia can operate more efficiently at scale, enhance capacity utilisation, and build a more resilient and flexible supply chain to support long-term growth.
"This move also enables us to expand capacity beyond Singapore to better support our growing business, while continuing to ensure operational resilience, consistent product quality, and supply continuity."
On whether the move marks a shift away from its "made in Singapore" heritage, the spokesperson told CNA that it "remains firmly committed to Singapore and will continue to strengthen its position as a proud homegrown and household brand".
The company was established as a small bakery in Bukit Timah Plaza in 1978.
The spokesperson reiterated that Gardenia's Singapore headquarters will continue to anchor key functions such as brand management, product innovation and development, as well as customer and stakeholder engagement.
Gardenia's parent company, QAF, is headquartered here, and Singapore will remain a "key market and strategic hub", added the spokesperson.
"This move does not change our commitment to Singapore. In fact, it further strengthens our ability to continue serving Singapore consumers over the long term."
Affected staff will receive retrenchment benefits in line with the Ministry of Manpower’s Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
The benefits have also been agreed with the Food, Drinks and Allied Workers Union, and will be commensurate with each employee's salary and years of service.
Consumers in Singapore will not see any immediate changes in the prices for Gardenia products, said the spokesperson.
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