Singapore Firms Shift 141 Jobs to Malaysia and Vietnam as Rising Costs Redraw Regional Roles
Updated
Updated · bne IntelliNews · Jun 5
Singapore Firms Shift 141 Jobs to Malaysia and Vietnam as Rising Costs Redraw Regional Roles
1 articles · Updated · bne IntelliNews · Jun 5
Summary
Singapore-based companies are moving production and back-office work to Malaysia and Vietnam as inflation, high land costs and a tight labor market squeeze margins at home.
141 layoffs followed Gardenia’s bakery shift to Johor Bahru, while Yeo’s and Asia Pacific Breweries moved production lines and H&M relocated its Southeast Asia headquarters to Kuala Lumpur, affecting about 80 roles.
Johor is emerging as the main nearshore winner through the Johor-Singapore Special Economic Zone, which offers a 5% corporate tax rate for 15 years and is projected to add $26 billion a year to Malaysia’s economy by 2030.
Economists say the shift is a structural split rather than a simple exodus: Singapore keeps higher-value R&D and capital-intensive functions, while Malaysia absorbs labor-intensive operations and skilled corporate support work.
The broader realignment could widen Malaysia’s wage gap and talent shortages even as Vietnam and Thailand capture more supply-chain activity, while Singapore bets on AI and advanced industries to reabsorb displaced workers.
As Singapore chases its AI dream, can its workers escape the reality of jobs moving to Malaysia?
Is the new Johor-Singapore economic zone a bridge to prosperity or a path to greater inequality for Malaysia?
How is the US 'Reciprocity-First' trade policy reshaping the economic map of Southeast Asia?
Over 500 Jobs Relocated: How Singapore’s Firms Are Reshaping Southeast Asia’s Workforce and Embracing AI for High-Value Growth
Overview
In recent months, several firms in Singapore have announced major operational shifts, leading to job relocations and restructuring that impact local employment. Companies like Gardenia Foods and Tiger Beer are scaling down local operations or moving production to regional hubs such as Malaysia and Vietnam. These changes require close collaboration with unions to ensure fair compensation and support for affected employees. Despite these shifts, some firms retain Singapore as a central hub for key corporate functions, keeping a core workforce. This trend highlights how rising costs and regional opportunities are driving companies to optimize their operations while maintaining strategic roles in Singapore.