Gardenia to shift bakery production to JB; 141 affected staff in Singapore to receive transition and career support

Singapore will remain Gardenia’s central hub for key functions, including brand management, innovation, product development, and quality and regulatory oversight.

Gardenia Foods announced on 20 May (Wednesday) that it is shifting its bakery production from Singapore to Johor Bahru, Malaysia. As a result, 141 employees at its manufacturing facility in Pandan Loop will be retrenched.

In a joint statement with the Food, Drinks and Allied Workers Union (FDAWU), the bread maker said the move is part of ongoing efforts to "enhance operational efficiency and maintain competitiveness amid an increasingly challenging global environment." With this, production at the Pandan Loop manufacturing facility will cease on 30 June 2026.

Singapore, where the company still has some 250 employees after the transition, will remain Gardenia’s central hub for key functions such as brand management, innovation, product development, quality and regulatory oversight, customer and stakeholder engagement, as well as daily distribution and supply chain operations. The Singapore team will continue to oversee quality governance and ensure compliance with requirements set by the Singapore Food Agency and the Health Promotion Board.

Support measures for affected staff

According to the statement, employees were informed of the decision at an internal meeting on Wednesday morning. Affected staff will receive the appropriate notice period and support in line with local regulations and guidelines, and the company is also considering eligible employees for suitable roles within the Group’s network of operations where possible.

As added in the statement, the FDAWU was informed in advance, which thus enabled it to "quickly mobilise support such as training, job placement assistance, and discussions on fair retrenchment terms"; as well as tap on its network of unionised partners to identify suitable vacancies for affected workers.

"The union worked closely with Gardenia to ensure fair compensation and transition support for affected employees. The company will also sponsor one year of union membership for existing members so they can continue to access career and financial support.

"FDAWU was present at Gardenia’s internal meeting to address questions and concerns from its union members among those affected, and to reassure them of the union’s support."

Further support measures to be provided include:

• FDAWU will connect affected employees to the Labour Movement’s network, such as NTUC’s e2i (Employment and Employability Institute).
• Singaporeans and Permanent Residents will be able to tap on e2i’s job matching services, career coaching and skills upgrading advisory.
• In the coming weeks, FDAWU will organise on-site jobs and skills training for affected workers, including assistance with resume writing and interview preparation.
• The union will also with its partners to organise on-site interviews, with NTUC’s e2i providing career coaching assistance.

Part of a wider regional calibration

Gardenia’s move reflects a broader recalibration among companies in Singapore as they reassess their regional footprints amid cost pressures, manpower constraints, and the need to remain competitive. In March 2026, Yeo Hiap Seng similarly announced the cessation of operations at its Senoko manufacturing facility, citing comparable business pressures while retaining key strategic functions in Singapore.

Beyond food manufacturing, the trend is also being seen in other sectors. Earlier this week, H&M announced the shift of its Southeast Asia headquarters from Singapore to Kuala Lumpur, as part of what it called "a broader evolution of H&M’s commercial operating model, which replaces existing regional layers with four new continents." Under the new structure, the newly formed Continent Asia Pacific (APAC) will be based in Shanghai and will oversee five sales markets.

Photo / Gardenia's website