SINGAPORE: Asia Pacific Breweries Singapore (APBS), which produces Tiger Beer, will scale down brewing operations at its Tuas plant as part of a business transformation.
The move is expected to affect about 130 jobs over the next two years.
Announcing these plans 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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APBS will shift to an import-based supply model over the next two years, Heineken said, noting that imported beers already make up a significant part of the Singapore market, accounting for around half of beer consumed.
Malaysia, Vietnam and China are among the top source markets.
"Singapore will remain the home of Tiger Beer, and we will continue to invest in its future," said Mr Kenneth Choo, managing director of Heineken Asia Pacific.
Tiger Beer was founded in Singapore in 1932.
Its sales volume has doubled over the past 15 years, with more than 95 per cent of its sales now occurring outside Singapore, in over 60 markets worldwide.
Heineken said it will build customer and consumer functions in Singapore to support key import markets.
The Tuas site will be redeveloped to support regional logistics and innovation activities.
Heineken will also build on its only global GenAI Lab, located in Singapore, to support productivity and decision-making across the world.
"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," Mr Choo said.
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 at the time that it was unable to comment on the potential implications the layoffs would have for Singapore.
Heineken said on Tuesday that APBS has informed the relevant government agencies of the changes in Singapore and is working with the Food and Drink Allied Workers Union (FDAWU) to provide support to affected employees.
These include a severance package aligned with tenure, support to help with job search and career transitions, reskilling and upskilling with NTUC’s Employment and Employability Institute, as well as counselling and wellbeing resources.
FDAWU general secretary Sankaradass Chami said 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."
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The move is expected to affect about 130 jobs over the next two years.
Announcing these plans 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
APBS will shift to an import-based supply model over the next two years, Heineken said, noting that imported beers already make up a significant part of the Singapore market, accounting for around half of beer consumed.
Malaysia, Vietnam and China are among the top source markets.
"Singapore will remain the home of Tiger Beer, and we will continue to invest in its future," said Mr Kenneth Choo, managing director of Heineken Asia Pacific.
Tiger Beer was founded in Singapore in 1932.
Its sales volume has doubled over the past 15 years, with more than 95 per cent of its sales now occurring outside Singapore, in over 60 markets worldwide.
Heineken said it will build customer and consumer functions in Singapore to support key import markets.
The Tuas site will be redeveloped to support regional logistics and innovation activities.
Heineken will also build on its only global GenAI Lab, located in Singapore, to support productivity and decision-making across the world.
"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," Mr Choo said.
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 at the time that it was unable to comment on the potential implications the layoffs would have for Singapore.
Heineken said on Tuesday that APBS has informed the relevant government agencies of the changes in Singapore and is working with the Food and Drink Allied Workers Union (FDAWU) to provide support to affected employees.
These include a severance package aligned with tenure, support to help with job search and career transitions, reskilling and upskilling with NTUC’s Employment and Employability Institute, as well as counselling and wellbeing resources.
FDAWU general secretary Sankaradass Chami said 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."
Continue reading...