Gardenia Announces Major Restructuring in Singapore

Gardenia Foods has confirmed the retrenchment of 141 employees at its Pandan Loop manufacturing facility in Singapore. The decision comes as the company shifts its bakery production operations to Johor Bahru in Malaysia, with production at the Singapore site set to cease on June 30, 2026.

The move aims to improve operational efficiency amid rising costs and a challenging global environment. Gardenia emphasised that Singapore will continue to serve as the central hub for brand management, quality oversight, and distribution functions.

Background on Gardenia and the Food Manufacturing Sector

Gardenia is a well-known bread manufacturer with a strong presence across Southeast Asia. Founded decades ago, the brand has become a household name in Singapore for its fresh bakery products. The current restructuring reflects broader trends in the food and beverage industry where companies seek to optimise costs by relocating production to nearby regions with lower operational expenses.

Singapore's manufacturing sector has faced pressures from global supply chain disruptions, inflation, and energy costs in recent years. Many firms are consolidating regional operations to remain competitive while maintaining local presence for key functions.

Details of the Retrenchment and Timeline

The affected employees primarily include production staff, supervisors, and quality control personnel at the Pandan Loop site. Gardenia informed workers during an internal meeting on May 20, 2026. All retrenched staff will receive appropriate notice periods and support packages in accordance with Singapore regulations.

Production will fully stop on June 30, allowing a smooth transition. The company has assured that distribution and other support roles will remain unaffected in Singapore.

Photo by Sangria Señorial on Unsplash

• Announcement date: May 20, 2026
• Production cessation: June 30, 2026
• Number of employees impacted: 141
• New production location: Johor Bahru, Malaysia

Union and Government Response

The Food, Drinks and Allied Workers Union (FDAWU) and the National Trades Union Congress (NTUC) were briefed in advance. They are collaborating with Gardenia to provide job placement assistance, skills training, and fair retrenchment benefits for affected workers.

The Tripartite Taskforce for Responsible Retrenchment and Employment Facilitation has also been involved, ensuring compliance with best practices for employee support during restructuring.

Economic Context and Industry Trends

This development highlights ongoing challenges in Singapore's manufacturing landscape. Rising operational costs, including labour and utilities, have prompted several companies to explore cross-border production strategies.

While production moves abroad, retaining headquarters functions in Singapore helps preserve high-value jobs in areas like marketing, sales, and quality assurance. This hybrid model is becoming common among regional manufacturers.

Impacts on Employees and Local Community

The retrenchment affects families across Singapore. Many workers have long tenures with the company, making the transition particularly significant. Support measures include career counselling, reskilling programmes, and priority access to job matching services.

Local suppliers and related businesses may also feel ripple effects, though Gardenia's distribution network remains intact.

Photo by Negley Stockman on Unsplash

Future Outlook for Gardenia in Singapore

Gardenia has reaffirmed its commitment to the Singapore market. The brand will continue to focus on product innovation, marketing campaigns, and ensuring consistent quality for consumers.

Industry analysts note that such moves can ultimately strengthen a company's long-term viability, allowing reinvestment in growth areas while leveraging regional advantages.

Broader Implications for Singapore's Economy

Events like this underscore the need for workforce adaptability. Government initiatives such as SkillsFuture and career transition programmes play a key role in helping displaced workers find new opportunities in growing sectors.

Singapore continues to position itself as a hub for high-value activities even as some routine production shifts regionally.