Why Singapore firms are moving some operations overseas – and what that means for jobs
While some jobs may be shifted abroad or replaced by AI, the economy is evolving towards more specialised, higher-value work, experts told CNA’s Deep Dive podcast.
Office workers walking in Singapore's central business district. (File photo: iStock/3yephotography)
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Louisa Tang
10 Apr 2026 03:52PM
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SINGAPORE: Companies moving parts of their operations out of Singapore, especially within the region, is part of a longer-running trend and not a sign that firms are abandoning the country altogether, said experts.
This shift – driven by cost pressures, labour availability and regional integration – reflects how businesses are reorganising in response to rising costs in Singapore and opportunities elsewhere in Southeast Asia, they told CNA’s Deep Dive podcast.
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Over the past month, two prominent homegrown brands have announced plans to move some operations abroad.
Asia Pacific Breweries Singapore, which produces Tiger Beer and is owned by Heineken, said
it will wind down brewing operations in the country over the next few years, with about 130 jobs expected to be cut by 2027.
Meanwhile, Yeo Hiap Seng (Yeo’s) said
it will lay off 25 workers due to a “consolidation of can manufacturing to Malaysia”.
NOT FULL EXITS
These moves are mainly down to cost savings and a growing push for regional integration within the Association of Southeast Asian Nations (ASEAN), said Professor Sumit Agarwal of NUS Business School.
“Just look at the strength of the Singapore dollar versus the Malaysian ringgit. That causes lots of things to be much cheaper (across the border)”, noted Prof Agarwal, a Low Tuck Kwong Distinguished Professor of Finance who teaches economics and real estate.
He added that countries such as Malaysia and Vietnam are attractive because they offer cheaper labour, educated workers and English-speaking talent.