SINGAPORE - Bread manufacturer Gardenia will shift its bakery production operations from Singapore to Johor Bahru, Malaysia, resulting in the retrenchment of 141 employees at its Pandan Loop facility.

The company announced on Wednesday that production at the Singapore manufacturing plant will cease on June 30.

Gardenia said the move forms part of efforts to improve operational efficiency and strengthen competitiveness amid a challenging global business environment.

“Gardenia informed employees of the decision at an internal meeting this morning and said affected staff will receive the appropriate notice period and support in line with local regulations and guidelines,” the company said in a statement, as reported by CNA.

The company added that it is exploring opportunities to place eligible employees in suitable positions across its wider operations network where possible.

Following the transition, Gardenia said it will continue employing about 250 staff in Singapore.

Singapore will remain the company’s central hub for several key operations.

These include brand management, product development, quality assurance, regulatory oversight, daily distribution and supply chain management.

Gardenia said its Singapore-based team will also continue overseeing compliance with standards set by the Singapore Food Agency and the Health Promotion Board.

The company’s decision follows similar restructuring moves by other food and beverage manufacturers operating in Singapore.

In March, beverage manufacturer Yeo Hiap Seng (Yeo’s) announced plans to retrench 25 employees at its Senoko facility as it relocated can manufacturing operations to Malaysia.

The company said the move was intended to optimise production capacity and improve manufacturing efficiency across its regional network.

Yeo’s also confirmed that Singapore would continue serving as its headquarters, logistics hub and smaller-scale manufacturing centre.

Separately, Asia Pacific Breweries Singapore, producer of Tiger Beer, announced plans to cut around 130 positions while shifting production activities to regional markets including Malaysia and Vietnam.

The brewer said its Tuas facility would gradually be redeveloped to focus on logistics and innovation functions.

Gardenia said the Food, Drinks and Allied Workers Union (FDAWU) had been informed ahead of the announcement.

According to the company, early engagement enabled the union to quickly mobilise support measures for affected workers.

These include skills training, job placement assistance and negotiations on retrenchment terms.

FDAWU also leveraged its network of unionised partners to identify potential vacancies for displaced employees.

“The union worked closely with Gardenia to ensure fair compensation and transition support for affected employees,” the company said.

Gardenia added that it would sponsor one year of union membership for existing union members to ensure continued access to career and financial assistance programmes.

In the coming weeks, FDAWU is expected to organise on-site employment and training support initiatives.

These will include resume-writing workshops and interview preparation assistance for affected workers.