SINGAPORE: Asia Pacific Breweries Singapore (APBS), which produces Tiger Beer, will scale down brewing operations at its Tuas plant as part of a business transition.
The move is expected to affect about 130 jobs over the next two years.
Announcing this on Tuesday (Mar 24), Heineken, which owns APBS, said large-scale brewing operations at Tuas will be phased down progressively by the end of 2027.
"Production will be reallocated to established regional breweries in Malaysia and Vietnam to support a more agile regional supply approach. Over time, the Tuas site will be redeveloped to support regional logistics and innovation activities, including a pilot brewery," it added.
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Heineken said Tiger Beer's leadership remains anchored in Singapore, where the brand’s direction, creativity, and innovation are shaped.
APBS has informed the relevant government agencies and is working with the Food and Drink Allied Workers Union (FDAWU) to provide support to affected employees. Examples of this include a severance package aligned with tenure, outplacement support to help with job search and career transitions, reskilling and upskilling with NTUC’s Employment and Employability Institute and counselling and wellbeing resources.
FDAWU general secretary Sankaradass Chami said that the union recognises that the shift in APBS' business model is "a difficult decision as it affects its employees".
"We appreciate that APBS engaged the union in advance and worked together with us to work through our support for affected employees.
"Through close union-management engagement, we have worked to ensure that affected employees are treated fairly with negotiated severance packages and are supported responsibly, including access to the necessary employment and career support as they move forward."
The operational changes in Singapore will be implemented "progressively", parent company Heineken said.
APBS will "progressively evolve to an import-based supply model over the next two years, supporting a more agile and regionally integrated supply network while maintaining choice for consumers", said Heineken.
It noted that imported beer is already a significant part of the Singapore market, accounting for around half of all beer consumed, with Malaysia, Vietnam and China among the top source markets.
"As we position the business for the next decade, we will further build Singapore-based capabilities in GenAI, brand leadership and innovation, alongside stronger regional commercial and logistics support," Heineken Asia Pacific managing director Kenneth Choo said.
"We recognise this is a difficult transition, and we are committed to supporting impacted colleagues with fairness, dignity and respect. Singapore will remain the home of Tiger Beer, and we will continue to invest in its future."
Heineken said that as part of the shift in business model, it will build up its regional logistics as well as its customer and consumer functions in Singapore to support key import markets, redevelop the Tuas site and build on Heineken's first generative AI lab in Singapore to "support productivity and decision-making across the world".
In February, Heineken said it would cut up to 6,000 jobs from its global workforce and set lower expectations for 2026 profit growth than last year, as the Dutch brewer and its peers faced weak demand.
The job cuts amount to almost 7 per cent of the 87,000-strong, global workforce at the world's No.2 brewer by market value.
Heineken made the announcement following the surprise resignation of its CEO Dolf van den Brink in January.
Heineken told CNA then that it was unable to comment on the potential implications the layoffs would have for Singapore.
Responding to the same queries, Asia Pacific Breweries Singapore said it had no announcements to make at that time.
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The move is expected to affect about 130 jobs over the next two years.
Announcing this on Tuesday (Mar 24), Heineken, which owns APBS, said large-scale brewing operations at Tuas will be phased down progressively by the end of 2027.
"Production will be reallocated to established regional breweries in Malaysia and Vietnam to support a more agile regional supply approach. Over time, the Tuas site will be redeveloped to support regional logistics and innovation activities, including a pilot brewery," it added.
CNA Games
Show More Show Less
Heineken said Tiger Beer's leadership remains anchored in Singapore, where the brand’s direction, creativity, and innovation are shaped.
APBS has informed the relevant government agencies and is working with the Food and Drink Allied Workers Union (FDAWU) to provide support to affected employees. Examples of this include a severance package aligned with tenure, outplacement support to help with job search and career transitions, reskilling and upskilling with NTUC’s Employment and Employability Institute and counselling and wellbeing resources.
FDAWU general secretary Sankaradass Chami said that the union recognises that the shift in APBS' business model is "a difficult decision as it affects its employees".
"We appreciate that APBS engaged the union in advance and worked together with us to work through our support for affected employees.
"Through close union-management engagement, we have worked to ensure that affected employees are treated fairly with negotiated severance packages and are supported responsibly, including access to the necessary employment and career support as they move forward."
The operational changes in Singapore will be implemented "progressively", parent company Heineken said.
APBS will "progressively evolve to an import-based supply model over the next two years, supporting a more agile and regionally integrated supply network while maintaining choice for consumers", said Heineken.
It noted that imported beer is already a significant part of the Singapore market, accounting for around half of all beer consumed, with Malaysia, Vietnam and China among the top source markets.
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"As we position the business for the next decade, we will further build Singapore-based capabilities in GenAI, brand leadership and innovation, alongside stronger regional commercial and logistics support," Heineken Asia Pacific managing director Kenneth Choo said.
"We recognise this is a difficult transition, and we are committed to supporting impacted colleagues with fairness, dignity and respect. Singapore will remain the home of Tiger Beer, and we will continue to invest in its future."
Heineken said that as part of the shift in business model, it will build up its regional logistics as well as its customer and consumer functions in Singapore to support key import markets, redevelop the Tuas site and build on Heineken's first generative AI lab in Singapore to "support productivity and decision-making across the world".
GLOBAL JOB CUTS
In February, Heineken said it would cut up to 6,000 jobs from its global workforce and set lower expectations for 2026 profit growth than last year, as the Dutch brewer and its peers faced weak demand.
The job cuts amount to almost 7 per cent of the 87,000-strong, global workforce at the world's No.2 brewer by market value.
Heineken made the announcement following the surprise resignation of its CEO Dolf van den Brink in January.
Heineken told CNA then that it was unable to comment on the potential implications the layoffs would have for Singapore.
Responding to the same queries, Asia Pacific Breweries Singapore said it had no announcements to make at that time.
Continue reading...