Gardenia to shift bakery production from Singapore to Malaysia; 141 employees retrenched

In a significant operational shift, Singaporean bread giant Gardenia is moving its bakery production to Johor Bahru, Malaysia. This strategic relocation, aimed at enhancing operational efficiency and competitiveness in a challenging global market, will unfortunately lead to the retrenchment of 141 employees at its Pandan Loop facility. The facility is slated to cease production by June 30.

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The company said on Wednesday (May 20) that the move is part of ongoing efforts to improve operational efficiency and remain competitive amid an increasingly challenging global environment.

Gardenia has assured that affected staff will receive appropriate notice and support in accordance with local regulations. The company is also exploring opportunities to place eligible employees in suitable roles within its broader network. Despite this production shift, Singapore will continue to serve as Gardenia's central hub, overseeing crucial functions such as brand management, innovation, product development, and quality control.

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Gardenia informed employees of the decision at an internal meeting this morning and said affected staff will receive the appropriate notice period and support in line with local regulations and guidelines.

The Food, Drinks and Allied Workers Union (FDAWU) was consulted in advance, enabling them to swiftly mobilize support services. This included providing training, job placement assistance, and facilitating discussions on fair retrenchment terms. The union's proactive engagement with Gardenia has been instrumental in securing fair compensation and transition support for the affected workers, demonstrating a collaborative approach to managing this significant change.

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This enabled the union to quickly mobilise support such as training, job placement assistance, and discussions on fair retrenchment terms.