JOHOR BAHRU: In Senai’s sprawling industrial belt, Gardenia Malaysia’s massive bakery sits alongside warehouses operated by tech giant Seagate and e-commerce heavyweight Shopee.The facility, about 45km from the Tuas Second Link, is run by Singapore-listed QAF Group, owner of the Gardenia brand.Last week, the breadmaker announced it would shift bakery production from its Pandan Loop facility in Singapore to Johor Bahru, a move that will see 141 workers retrenched.Gardenia said the relocation is aimed at improving efficiency and staying competitive in an increasingly challenging global market.While the company has not disclosed the exact site for the transferred production, the Senai facility is currently its only major plant in Johor.According to QAF Group, the Senai plant can churn out 8,000 loaves of bread and 20,000 tortilla wraps every hour.A Gardenia Malaysia employee told CNA that staff at the Senai plant have yet to be informed if more workers will be brought in following the announcement.“We don’t know if there will be workers transferring from Singapore or if there will be new hires. Everything is still operating as usual,” said the employee, who declined to be named.Analysts say Gardenia’s move reflects a growing trend of Singapore companies relocating manufacturing operations across the Causeway to cut costs and streamline production.
Gardenia move: As Malaysia draws more Singapore manufacturers, experts flag competition fears
Companies like Gardenia, Yeo’s and APB Singapore are moving production operations from Singapore to Malaysia. While boosting investment, this could intensify competition for labour, industrial land and other limited resources, say observers.
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