The great migration: Singapore giants are moving to Johor

Photo credit: Malay Mail

In Senai’s sprawling industrial belt, Gardenia Malaysia’s massive bakery sits alongside warehouses operated by tech giant \seagate and e-commerce heavyweight Shopee.

Malaymail reports that the facility, located 45 km from the Tuas Second Link, is run by |singapore-listed QAF \group, owner of the Gardenia brand.

Last week, the bread maker announced it would shift production from its Pandan Loop facility in Singapore to Johor Bahru, a move resulting in 141 retrenchments in the republic.

Gardenia said the relocation aims to improve efficiency and maintain competitiveness in a challenging global market.

While the company has not disclosed the exact site for the transferred production, its  Senai plant is currently its only major Johor facility, capable of churning out 8,000 tortilla wraps every hour, CNA reported.

Analysts say Gardenia’s move reflects a growing trend of Singapore companies relocating manufacturing across the Causeway.

Similar shifts by major players like Asia Pacific Breweries Singapore (APBS) and Yeo Hiap |seng (Yeo’s) point to a broader “structural shift,” according to Johor-based property consultant Samuel Tan.

This realignment is turbocharged by the Johor-Singapore Special Economic Zone (JS- SEZ0.

While the full masterplan is pending, firms are already moving to capitalize on incentives, including a special 5 per cent corporate tax rate for 15 years, sharply lower than Malaysia’s standard 24 per cent.

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