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.
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.
But at the same time, should more food production lines continue to leave the country, there is a risk of weakening the “Made in Singapore” brand as a whole.
Mr Saktiandi Supaat, chairman of the People’s Action Party’s Government Parliamentary Committee for Finance, and Trade and Industry, said this was a valid concern that should be monitored carefully.
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“Made in Singapore” carries meaning because consumers associate it with trust, quality, food safety and reliability, he said.
"If too much production shifts out, we risk weakening that identity over time,” said Mr Saktiandi, who is also a Member of Parliament in Bishan–Toa Payoh GRC.
Rising labour, land and energy costs are pushing companies to move large-scale production to lower-cost markets in the region.
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.
Yeo Hiap Seng, also known as Yeo’s, 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.
On May 20, Gardenia said it would move its bread production from Singapore to Malaysia.
Instead of viewing these moves as a sign of Singapore’s diminishing status in food manufacturing, experts said the trend is a signal of an evolving industry.
“Firms are adopting hybrid operating models — 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,” said Ms Chong Ri Jia, CEO of food production firm FoodPlant.
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.
“In this environment, agility, innovation capability and speed-to-market are becoming just as important as manufacturing scale alone,” Ms Chong said.
Over the years, there have been other cases of food companies moving manufacturing out of Singapore, but retaining higher-value work here.
For example, homegrown brand Fraser and Neave (F&N) first produced its Magnolia brand milk at a dairy farm at Chestnut Drive in 1937 before relocating its milk production elsewhere.
Nevertheless, the company has continued researching and developing new products from Singapore, such as the F&N Magnolia High Protein Milk, which was created together with the Singapore Sports Institute.
In this regard, Singapore has continued to strengthen its capabilities in food innovation, research and development and advanced manufacturing over the decades.
A Gardenia truck at 230B Pandan Loop on May 20, 2026. (Photo: CNA/Liew Zhi Xin)
Asked which food manufacturing activities appeal most to Singapore, Ms Chong said it would be in areas such as product development, process design, market validation, food safety systems and manufacturing for premium or regulated markets.
She added that companies producing innovative and higher-value products are better positioned to sustain operations in Singapore, alongside growing demand for pilot-scale and small-batch production before regional expansion.
“This is an area where Singapore’s ecosystem — including research institutions, innovation infrastructure and technical expertise — continues to provide strong support.
“Singapore’s strengths remain in its stable operating environment, strong innovation ecosystem, trusted regulatory systems, and ability to connect companies into regional and global markets.”
Ms Chong said the likely model is not one where every production line remains domestic, but one where Singapore anchors the higher-value and strategically important parts of the value chain, while leveraging regional networks for scale and cost efficiency.
“The key question for the sector is therefore not simply ‘what should stay’, but ‘what capabilities are strategically important for Singapore to continue building and retaining’.”
Mr Goh Jing Rong, assistant professor of economics from the Singapore Management University (SMU), agreed, saying that Singapore should focus on retaining and growing food manufacturing activities where trust, quality, innovation and regulatory standards “are core”.
“At the same time, Singapore can also play a stronger role as a regional food innovation and management hub. In that case, even if some mass production moves overseas, Singapore can still retain the higher-value parts of the production chain,” he added.
Ostensibly, rising structural costs in Singapore, as well as newer and better opportunities in nearby countries, are the key factors influencing companies’ decisions to relocate their factory lines elsewhere, several experts said.
FoodPlant’s Ms Chong said sustaining large-scale food manufacturing operations in Singapore has become increasingly challenging, particularly for high-volume and cost-sensitive products.
She said cost pressure is not the only issue, but there are also multiple structural factors.
“The industry operates within a structurally higher-cost environment across labour, industrial space, energy, and logistics.
“Over the past few years, geopolitical disruptions and supply chain volatility have further widened these differences relative to regional manufacturing hubs, particularly through higher fuel, freight and raw material costs,” she said.
As many food manufacturers are no longer serving just the domestic market, producing closer to larger consumer markets can improve both cost competitiveness and operation efficiency.
“Once firms expand beyond Singapore and compete across regional markets, they must evaluate whether large-volume production can continue to remain commercially viable if fully anchored locally,” Ms Chong said.
Singapore is becoming less competitive for high-volume, lower-margin production activities, said SMU’s Mr Goh.
This is especially so when neighbouring markets, such as Johor Bahru, can offer more land and lower energy costs.
“The key point is that Singapore is unlikely to compete mainly on low-cost, mass production,” he said, adding that the future of the sector is more likely to be in higher skilled areas such as automation, food innovation and product development.
11:00 Min
It’s no dystopian sci-fi: Insects, cultivated meat and food once destined for the bin are now ready to be served for consumption. This is how Singapore challenges and reinvents the notion of food.
The upcoming Johor-Singapore Special Economic Zone (JS-SEZ) is also increasingly seen as a way for manufacturers to split operations more efficiently across both sides of the border.
Prime Minister Lawrence Wong said in January 2025 that the JS-SEZ would be a “big plus” for firms looking to tap Singapore’s strengths in areas such as research and development, while leveraging Johor’s strengths in abundant land.
To this, Mr Saktiandi said Singapore should tap opportunities under the JS-SEZ, with land- and labour-intensive functions based nearby while higher-value activities remain anchored here.
“In many ways, this is not a Singapore-versus-Malaysia story, but about building a stronger regional production ecosystem,” he added.
Mr Lennon Tan, president of the Singapore Manufacturing Federation (SMF), described the JS-SEZ as the “most credible cross-border proposition Singapore manufacturers have ever had”.
The bigger challenge, he noted, is to ensure that workers displaced by restructuring can move into higher-value roles as Singapore continues attracting major investments.
Mr Tan said companies shifting some production operations overseas should be seen as trying to stay competitive, and not be regarded as a vote of no confidence in Singapore, he said.
“These aren't companies leaving Singapore. It's companies right-sizing their geography.
“Singapore continues to pay a resilience premium — for trust, IP protection, and rule of law. That premium is well worth it for the right activities. For commodity, bulky, low-margin production, it is simply the wrong tool for the wrong job."
With local food brands moving parts of their production overseas, experts also acknowledged that the loss of well-known Singapore-made products, such as Tiger Beer and Gardenia bread, makes the local manufacturing identity less unique.
At the same time, there is a risk that Singaporeans’ emotional and cultural connection to these homegrown brands could also weaken over time.
Mr Richard Ravel, principal consultant at Food Forward, said this emotional attachment could weaken if product quality, taste or brand identity changes.
However, he said this will not happen if brands maintain consistent quality and retain a strong Singapore identity in their products, particularly through local R&D efforts.
“Ultimately, the brand story, together with continued investment in local innovation and product development, may matter more than the physical location of the factory.”
FoodPlant’s Ms Chong agreed, saying trust in a brand is sustained by whether it continues to deliver consistent quality, safety, affordability and value.
“If companies are able to maintain these standards, consumers are likely to remain loyal regardless of where production is located.”
She added that brand identity today is not just tied to where a product is manufactured, but also where it is developed, managed and innovated.
“For food brands specifically, maintaining quality standards, food safety assurance, and continuity in taste and value will matter more to consumers over time than the exact physical location of every production line.”
Mr Saktiandi noted that factors such as innovation, product design, quality standards, brand stewardship and intellectual property also shape the country’s identity.
“The challenge is to preserve a meaningful Singapore core, whether through research and development, premium manufacturing, quality assurance or brand leadership, so that the Singapore connection remains authentic and valuable.
“Overall, I would view this as a transition to manage carefully rather than something to panic over,” Mr Saktiandi said.
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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.
But at the same time, should more food production lines continue to leave the country, there is a risk of weakening the “Made in Singapore” brand as a whole.
Mr Saktiandi Supaat, chairman of the People’s Action Party’s Government Parliamentary Committee for Finance, and Trade and Industry, said this was a valid concern that should be monitored carefully.
CNA Games
Show More Show Less
“Made in Singapore” carries meaning because consumers associate it with trust, quality, food safety and reliability, he said.
"If too much production shifts out, we risk weakening that identity over time,” said Mr Saktiandi, who is also a Member of Parliament in Bishan–Toa Payoh GRC.
Rising labour, land and energy costs are pushing companies to move large-scale production to lower-cost markets in the region.
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.
Yeo Hiap Seng, also known as Yeo’s, 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.
On May 20, Gardenia said it would move its bread production from Singapore to Malaysia.
Instead of viewing these moves as a sign of Singapore’s diminishing status in food manufacturing, experts said the trend is a signal of an evolving industry.
“Firms are adopting hybrid operating models — 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,” said Ms Chong Ri Jia, CEO of food production firm FoodPlant.
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.
“In this environment, agility, innovation capability and speed-to-market are becoming just as important as manufacturing scale alone,” Ms Chong said.
Related:
SINGAPORE AS A FOOD INNOVATION AND R&D HUB
Over the years, there have been other cases of food companies moving manufacturing out of Singapore, but retaining higher-value work here.
For example, homegrown brand Fraser and Neave (F&N) first produced its Magnolia brand milk at a dairy farm at Chestnut Drive in 1937 before relocating its milk production elsewhere.
Nevertheless, the company has continued researching and developing new products from Singapore, such as the F&N Magnolia High Protein Milk, which was created together with the Singapore Sports Institute.
In this regard, Singapore has continued to strengthen its capabilities in food innovation, research and development and advanced manufacturing over the decades.
A Gardenia truck at 230B Pandan Loop on May 20, 2026. (Photo: CNA/Liew Zhi Xin)
Asked which food manufacturing activities appeal most to Singapore, Ms Chong said it would be in areas such as product development, process design, market validation, food safety systems and manufacturing for premium or regulated markets.
She added that companies producing innovative and higher-value products are better positioned to sustain operations in Singapore, alongside growing demand for pilot-scale and small-batch production before regional expansion.
“This is an area where Singapore’s ecosystem — including research institutions, innovation infrastructure and technical expertise — continues to provide strong support.
“Singapore’s strengths remain in its stable operating environment, strong innovation ecosystem, trusted regulatory systems, and ability to connect companies into regional and global markets.”
Ms Chong said the likely model is not one where every production line remains domestic, but one where Singapore anchors the higher-value and strategically important parts of the value chain, while leveraging regional networks for scale and cost efficiency.
“The key question for the sector is therefore not simply ‘what should stay’, but ‘what capabilities are strategically important for Singapore to continue building and retaining’.”
Mr Goh Jing Rong, assistant professor of economics from the Singapore Management University (SMU), agreed, saying that Singapore should focus on retaining and growing food manufacturing activities where trust, quality, innovation and regulatory standards “are core”.
“At the same time, Singapore can also play a stronger role as a regional food innovation and management hub. In that case, even if some mass production moves overseas, Singapore can still retain the higher-value parts of the production chain,” he added.
Related:
WHY ARE COMPANIES MOVING THEIR PRODUCTION LINES?
Ostensibly, rising structural costs in Singapore, as well as newer and better opportunities in nearby countries, are the key factors influencing companies’ decisions to relocate their factory lines elsewhere, several experts said.
FoodPlant’s Ms Chong said sustaining large-scale food manufacturing operations in Singapore has become increasingly challenging, particularly for high-volume and cost-sensitive products.
She said cost pressure is not the only issue, but there are also multiple structural factors.
“The industry operates within a structurally higher-cost environment across labour, industrial space, energy, and logistics.
“Over the past few years, geopolitical disruptions and supply chain volatility have further widened these differences relative to regional manufacturing hubs, particularly through higher fuel, freight and raw material costs,” she said.
As many food manufacturers are no longer serving just the domestic market, producing closer to larger consumer markets can improve both cost competitiveness and operation efficiency.
“Once firms expand beyond Singapore and compete across regional markets, they must evaluate whether large-volume production can continue to remain commercially viable if fully anchored locally,” Ms Chong said.
Singapore is becoming less competitive for high-volume, lower-margin production activities, said SMU’s Mr Goh.
This is especially so when neighbouring markets, such as Johor Bahru, can offer more land and lower energy costs.
“The key point is that Singapore is unlikely to compete mainly on low-cost, mass production,” he said, adding that the future of the sector is more likely to be in higher skilled areas such as automation, food innovation and product development.
11:00 Min
It’s no dystopian sci-fi: Insects, cultivated meat and food once destined for the bin are now ready to be served for consumption. This is how Singapore challenges and reinvents the notion of food.
The upcoming Johor-Singapore Special Economic Zone (JS-SEZ) is also increasingly seen as a way for manufacturers to split operations more efficiently across both sides of the border.
Prime Minister Lawrence Wong said in January 2025 that the JS-SEZ would be a “big plus” for firms looking to tap Singapore’s strengths in areas such as research and development, while leveraging Johor’s strengths in abundant land.
To this, Mr Saktiandi said Singapore should tap opportunities under the JS-SEZ, with land- and labour-intensive functions based nearby while higher-value activities remain anchored here.
“In many ways, this is not a Singapore-versus-Malaysia story, but about building a stronger regional production ecosystem,” he added.
Mr Lennon Tan, president of the Singapore Manufacturing Federation (SMF), described the JS-SEZ as the “most credible cross-border proposition Singapore manufacturers have ever had”.
The bigger challenge, he noted, is to ensure that workers displaced by restructuring can move into higher-value roles as Singapore continues attracting major investments.
Mr Tan said companies shifting some production operations overseas should be seen as trying to stay competitive, and not be regarded as a vote of no confidence in Singapore, he said.
“These aren't companies leaving Singapore. It's companies right-sizing their geography.
“Singapore continues to pay a resilience premium — for trust, IP protection, and rule of law. That premium is well worth it for the right activities. For commodity, bulky, low-margin production, it is simply the wrong tool for the wrong job."
Related:
‘MADE IN SINGAPORE’ LABEL
With local food brands moving parts of their production overseas, experts also acknowledged that the loss of well-known Singapore-made products, such as Tiger Beer and Gardenia bread, makes the local manufacturing identity less unique.
At the same time, there is a risk that Singaporeans’ emotional and cultural connection to these homegrown brands could also weaken over time.
Mr Richard Ravel, principal consultant at Food Forward, said this emotional attachment could weaken if product quality, taste or brand identity changes.
However, he said this will not happen if brands maintain consistent quality and retain a strong Singapore identity in their products, particularly through local R&D efforts.
“Ultimately, the brand story, together with continued investment in local innovation and product development, may matter more than the physical location of the factory.”
FoodPlant’s Ms Chong agreed, saying trust in a brand is sustained by whether it continues to deliver consistent quality, safety, affordability and value.
“If companies are able to maintain these standards, consumers are likely to remain loyal regardless of where production is located.”
She added that brand identity today is not just tied to where a product is manufactured, but also where it is developed, managed and innovated.
“For food brands specifically, maintaining quality standards, food safety assurance, and continuity in taste and value will matter more to consumers over time than the exact physical location of every production line.”
Mr Saktiandi noted that factors such as innovation, product design, quality standards, brand stewardship and intellectual property also shape the country’s identity.
“The challenge is to preserve a meaningful Singapore core, whether through research and development, premium manufacturing, quality assurance or brand leadership, so that the Singapore connection remains authentic and valuable.
“Overall, I would view this as a transition to manage carefully rather than something to panic over,” Mr Saktiandi said.
Continue reading...