\n<\/p>\n
Mr Yeo Eng Kuang, co-founder and brewmaster of The 1925 Brewing Co, said he does not expect the brand to be affected.<\/span><\/p>\n \u201cTiger Beer has already shifted its branding a couple of years back, instead of being brewed in Singapore, it has been changed to born in Singapore,\u201d he said.<\/span><\/p>\n The company can still champion it as such, even after manufacturing in Singapore stops. \u201cJust because it\u2019s a local brand doesn\u2019t mean it has to be made in Singapore.\u201d<\/span><\/p>\n The commercial logic is hard to argue with. Rental, manpower and raw materials are all expensive in Singapore, said Mr Francis Khoo, managing director of Little Island Brewing Co.\u00a0<\/p>\n Breweries also face costs consumers may be unaware of. Singapore charges an excise duty of S$60 per litre of alcohol, and producers must also pay a licence fee to brew. His company pays more than S$8,000 (US$6,200) a year for its licence alone, and larger breweries would have to pay more.<\/p>\n \u201cIt\u2019s very expensive to operate a brewery in Singapore,\u201d he said.<\/span><\/p>\n Mr Yeo agreed. \u201cThe fact is, even if they make it overseas and they bring it back to Singapore, it might still be cheaper,\u201d he said.<\/span><\/p>\n With Malaysia just next door and significantly lower costs in both Malaysia and Vietnam, the decision was inevitable. \u201cIt makes perfect sense, unfortunately.\u201d\u00a0<\/span><\/p>\n Heineken has likely been planning this for some time, said Assoc Prof Lau.\u00a0<\/p>\n The company has been expanding capacity at its regional breweries, and the facility in Vietnam can produce nearly five times more beer than the one in Singapore. The management may have concluded that local manufacturing is no longer commercially viable, he said.<\/p>\n<\/div>\n\u201cIT MAKES PERFECT SENSE\u201d<\/span><\/h2>\n
COUNTING THE COST<\/span><\/h2>\n