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SINGAPORE: Recent moves by some homegrown food manufacturers to shift large-scale production out of Singapore are not a sign that the country is losing its shine, but that its role is evolving from being a producer of goods to a factory of ideas.<\/p>\n
The shifts reflect a broader transition towards higher-skilled and higher-value roles in the industry, such as product development, market research and food safety, several food business experts said.<\/p>\n
But at the same time, should more food production lines continue to leave the country, there is a risk of weakening the \u201cMade in Singapore\u201d brand as a whole.<\/p>\n
Mr Saktiandi Supaat, chairman of the People\u2019s Action Party\u2019s Government Parliamentary Committee for Finance, and Trade and Industry, said this was a valid concern that should be monitored carefully.\u00a0<\/p>\n
\u201cMade in Singapore\u201d carries meaning because consumers associate it with trust, quality, food safety and reliability, he said.\u00a0<\/p>\n
“If too much production shifts out, we risk weakening that identity over time,\u201d said Mr Saktiandi, who is also a Member of Parliament in Bishan\u2013Toa Payoh GRC.\u00a0<\/p>\n
Rising labour, land and energy costs are pushing companies to move large-scale production to lower-cost markets in the region.\u00a0<\/p>\n
In the past two months, Yeo Hiap Seng, Asia Pacific Breweries Singapore (APBS) and Gardenia Foods announced plans to downsize parts of their operations in Singapore and shift some production activities to Malaysia.<\/p>\n
Yeo Hiap Seng, also known as Yeo\u2019s, said it would consolidate its can manufacturing operations in Malaysia, while APBS announced that production would be reallocated to its established regional breweries in Malaysia and Vietnam.\u00a0<\/p>\n
On May 20, Gardenia said it would move its bread production from Singapore to Malaysia.<\/p>\n
Instead of viewing these moves as a sign of Singapore\u2019s diminishing status in food manufacturing, experts said the trend is a signal of an evolving industry.<\/p>\n
\u201cFirms are adopting hybrid operating models \u2014 where large-scale production may be regionalised, while higher-value functions such as product development, process engineering, quality systems and regional management remain anchored in Singapore,\u201d said Ms Chong Ri Jia, CEO of food production firm FoodPlant.<\/p>\n
She noted that for many companies today, the question is no longer whether to remain in Singapore, but which activities should stay local and which are better suited for regional operations.<\/p>\n
\u201cIn this environment, agility, innovation capability and speed-to-market are becoming just as important as manufacturing scale alone,\u201d Ms Chong said.<\/p>\n<\/div>\n
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