SINGAPORE: Bread manufacturer Gardenia is shifting its bakery production from Singapore to Johor Bahru, Malaysia, resulting in the retrenchment of 141 employees at its Pandan Loop facility.The company said on Wednesday (May 20) that the move is part of ongoing efforts to improve operational efficiency and remain competitive amid an increasingly challenging global environment. Production at the Pandan Loop manufacturing facility will cease on Jun 30.“Gardenia informed employees of the decision at an internal meeting this morning and said affected staff will receive the appropriate notice period and support in line with local regulations and guidelines,” the company said.
It added that it is also considering eligible employees for suitable roles within the group’s network of operations where possible.Gardenia added that Singapore, where it still has about 250 employees after the transition, will remain Gardenia’s central hub for key functions such as brand management, product development, quality and regulatory oversight. This will also include daily distribution and supply chain operations.Its Singapore team will continue to oversee quality governance and ensure compliance with requirements set by the Singapore Food Agency and the Health Promotion Board.Gardenia also said that the Food, Drinks and Allied Workers Union (FDAWU), an affiliate of the National Trades Union Congress, was informed in advance.“This enabled the union to quickly mobilise support such as training, job placement assistance, and discussions on fair retrenchment terms. FDAWU was also able to quickly tap on its network of unionised partners to identify suitable vacancies for affected workers,” it added.“The union worked closely with Gardenia to ensure fair compensation and transition support for affected employees.”The company will also sponsor one year of union membership for existing members "so they can continue to access career and financial support", said Gardenia.In the coming weeks, FDAWU will organise on-site jobs and skills training for affected workers, including assistance with resume writing and interview preparation, the company noted. Gardenia was first established as a small bakery in 1978, before it expanded its range to include 60 varieties of baked bread, buns, rolls, wraps and other products.Gardenia’s move comes after similar moves by other food and beverage manufacturers.In March, home-grown beverage company Yeo Hiap Seng (Yeo’s) announced it would lay off 25 employees at its Senoko facility as it consolidated its can manufacturing operations to Malaysia, in a bid to optimise capacity and improve efficiency across its network.The company said its Singapore site would remain as its headquarters and a logistics and innovation hub, even as production activities were scaled back.Separately, Asia Pacific Breweries Singapore, which brews Tiger Beer, said it would cut about 130 roles as it progressively scales down large-scale brewing operations in Singapore and shifts production to other regional markets such as Malaysia and Vietnam.The Tuas facility is expected to be redeveloped over time to focus on logistics and innovation functions.
