Singapore bread manufacturer Gardenia will be moving its bakery production operations from Singapore to Johor Bahru, resulting in 141 employees being retrenched from its Pandan Loop facility.
The company reportedly announced the decision during an internal meeting on May 20, marking another major manufacturing shift away from Singapore amid rising operating costs and increasing regional competition.
According to reports, production at the Pandan Loop bakery will officially stop on Jun. 30. Around 250 employees will remain in Singapore after the retrenchment exercise.
Gardenia said the move is part of efforts to improve operational efficiency and maintain competitiveness in an increasingly challenging business environment. The company added that affected employees will receive compensation, notice periods and support aligned with Singapore employment regulations and retrenchment guidelines.
The decision comes as more firms across manufacturing, food production and logistics sectors continue relocating labour-intensive operations to Malaysia, where operational expenses, land and manpower costs are significantly lower.
Singapore To Remain Gardenia’s Regional Control Hub
Despite shifting bread production to Johor Bahru, Gardenia stated that Singapore will continue serving as its central hub for higher-value corporate functions.
These include brand management, food innovation, product research, regulatory compliance and quality assurance oversight. The company appears to be restructuring its Singapore operations towards management and strategic functions rather than large-scale physical manufacturing.
Founded in Singapore in 1978, Gardenia started as a small bakery outlet at Bukit Timah Plaza before expanding rapidly during the 1980s. Its Pandan Loop facility, opened in 1983, became one of Singapore’s best-known commercial bakery operations.
For many Singaporeans, the Gardenia brand has long been associated with household staples ranging from classic white bread to flavoured buns and breakfast products commonly found in supermarkets across the island.
Rising Costs Continue To Pressure Singapore Manufacturing
The retrenchment exercise highlights the growing pressure on Singapore’s manufacturing and food production sectors as businesses seek cheaper regional alternatives to maintain profit margins.
Higher electricity prices, manpower expenses, rental costs and operational overheads have increasingly pushed companies to relocate parts of their production chains to neighbouring countries such as Malaysia, Vietnam and Indonesia.
Johor Bahru has become an especially attractive destination due to its proximity to Singapore, lower labour costs and improving industrial infrastructure. Many firms now operate hybrid business structures where production takes place in Malaysia while headquarters, finance, branding and management remain based in Singapore.
The move may also reignite concerns among Singapore workers over job security in traditional manufacturing industries, particularly for mid-career employees whose skills are closely tied to local factory operations.
With retrenchments recently announced across sectors including technology, banking and manufacturing, concerns about workforce displacement and corporate restructuring continue to grow across Singapore’s economy.