Companies Shift 244 Jobs and Production to Malaysia as Singapore Costs Drive Regional Split
Updated
Updated · CNBC · Jun 11
Companies Shift 244 Jobs and Production to Malaysia as Singapore Costs Drive Regional Split
3 articles · Updated · CNBC · Jun 11
Summary
H&M, Gardenia and Yeo’s have shifted headquarters, bakery output and can manufacturing from Singapore to Malaysia in moves affecting at least 244 jobs, while Heineken is moving large-scale beer production to Malaysia and Vietnam.
Lower rents, wages and operating costs, plus tax incentives and access to Malaysia’s larger market, are driving the shift as companies rework supply chains after COVID-19 disruptions and amid trade tensions.
Singapore is still keeping higher-value roles: H&M and Heineken said they will retain offices or regional commercial, logistics, innovation and GenAI functions there rather than fully exit.
The Johor-Singapore Special Economic Zone—covering more than 3,500 square kilometers and offering tax rates as low as 5% in eligible sectors—could accelerate this twinning model by making cross-border operations easier.
Singapore is offshoring jobs yet strengthening its dominance. How is this paradox reshaping Southeast Asia's economic map?
As companies flee Singapore's costs, are they ignoring the hidden compliance and IP risks in neighboring ASEAN countries?
Singapore’s High-Value Pivot: How 40 Million New ASEAN Workers Are Reshaping Regional Roles and Economic Strategy
Overview
Companies are moving cost-sensitive and operational roles from Singapore to other ASEAN countries because of rising business costs, such as higher manpower and rental expenses. As property prices increase, more people rent, which pushes up rental demand and adds to company costs. This has led to more retrenchments and terminations for professionals, managers, and executives, with some cases directly linked to offshoring and relocation. Companies want to stay resilient and build new capabilities, so they seek more flexible and scalable talent pools across ASEAN, making regional redistribution of roles a strategic response to ongoing economic pressures.