Gardenia says decision to move production out of Singapore ‘goes beyond cost-cutting’

Gardenia announced earlier on Wednesday that it is moving its bakery production to Johor Bahru. The move will result in the retrenchment of 141 employees at its Pandan Loop manufacturing facility, and production there will cease on Jun 30.

The company added that Singapore will remain its central hub for key functions such as brand management, product development, quality and regulatory oversight, daily distribution and supply chain operations.

Its Singapore team, which will have about 250 people after the transition, will also continue to oversee quality governance and ensure compliance with requirements set by the Singapore Food Agency and the Health Promotion Board.

Earlier, the company had said that the move is part of ongoing efforts to improve operational efficiency and remain competitive amid an increasingly challenging global environment.

The Gardenia spokesperson told CNA: “By leveraging regional capabilities, including the group’s Johor facilities, Gardenia can operate more efficiently at scale, enhance capacity utilisation, and build a more resilient and flexible supply chain to support long-term growth.

“This move also enables us to expand capacity beyond Singapore to better support our growing business, while continuing to ensure operational resilience, consistent product quality, and supply continuity.”