MalayMail/CNA-May 29
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, located 45km from the Tuas Second Link, is run by Singapore-listed QAF Group, owner of the Gardenia brand. Last week, the bread maker announced it would shift production from its Pandan Loop facility in Singapore to Johor Bahru, a move resulting in 141 retrenchments in the republic. Gardenia said the relocation aims to improve efficiency and maintain competitiveness in a challenging global market. While the company has not disclosed the exact site for the transferred production, its Senai plant is currently its only major Johor facility, capable of churning out 8,000 loaves and 20,000 tortilla wraps every hour, CNA reported. Analysts say Gardenia’s move reflects a growing trend of Singapore companies relocating manufacturing across the Causeway. Similar shifts by major players like Asia Pacific Breweries Singapore (APBS) and Yeo Hiap Seng (Yeo’s) point to a broader “structural shift,” according to Johor-based property consultant Samuel Tan. “Moving operations to Johor makes strong commercial sense,” said Tan, CEO of Olive Tree Property Consultants. “Companies no longer need to produce goods where they sell them. Johor allows Gardenia to manufacture at a lower cost while still trucking fresh products into Singapore daily.” This realignment is turbocharged by the Johor-Singapore Special Economic Zone (JS-SEZ). While the full masterplan is pending, firms are already moving to capitalize on incentives, including a special 5 per cent corporate tax rate for 15 years, sharply lower than Malaysia’s standard 24 per cent. Lennon Tan, president of the Singapore Manufacturing Federation (SMF), describes this as “rightsizing geography.” He also insists it is not a vote of no-confidence in Singapore, but a strategic restructuring. “F&B players are keeping HQ, brand innovation, and supply chain orchestration in Singapore, while moving the heavy lifting to Johor,” he said. In March, Yeo’s announced it would lay off 25 employees in Singapore and shift manufacturing to Malaysia to “optimize capacity.” Read more at:
