Yeo Hiap Seng axes 25 S’pore jobs as can production shifts to Malaysia; no change to drinks prices

SINGAPORE – Well-known packet drinks brand Yeo Hiap Seng has laid off 25 employees at its Senoko facility, as it shifts its can manufacturing operations to Malaysia.

Affected employees were informed of the retrenchment exercise during a face-to-face briefing conducted by the company’s management together with union representatives on the morning of March 31.

The affected roles are in can manufacturing and involve both local and foreign employees, with the same support framework applied regardless of nationality, a Yeo’s spokesperson told The Straits Times.

Yeo’s will continue to ensure a stable supply of products to meet consumer demand in Singapore following the move, the spokesperson said. “The exercise will not have a direct impact on beverage prices.”

The Food, Drinks and Allied Workers Union (FDAWU), in response to media queries, said it had been informed in advance of the retrenchments and had engaged the company early to negotiate “fair and responsible outcomes” for affected workers.

It added that, where redeployment is not possible, employees will receive retrenchment packages in line with the collective agreement and union norms, with higher severance caps for union members.

Yeo’s, in a statement on March 31, said it deeply regrets the impact on affected employees and is committed to supporting them through the transition. This includes job placement assistance, career guidance and counselling support.

Where possible, workers will be offered opportunities for open roles within the company’s operations in Malaysia, it added.

Affected employees will also receive retrenchment benefits in line with the Ministry of Manpower’s Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment. The payouts will be commensurate with each employee’s salary and years of service, the company said.

FDAWU said it was present at the March 31 briefing to ensure employees received accurate and clear information, and has worked with Yeo’s to provide on-site counselling and connect workers to career support services, including job matching and skills upgrading through NTUC’s Employment and Employability Institute.

Yeo’s currently has about 245 employees in Singapore and around 1,300 across its overseas operations.

The home-grown food and beverage group said the shift will see production centralised at its facilities in Johor and Selangor, allowing it to optimise capacity utilisation and improve overall manufacturing efficiency across its network.

The move will allow the Malaysian operations to take on a greater share of production, while the Senoko facility will continue to serve as the group’s headquarters, cross-border logistics hub and a smaller-scale manufacturing centre, the company added.

“The (Senoko) space and infrastructure will continue to support a wide range of functions, including light manufacturing, logistics optimisation, commercialisation initiatives, innovation work and regional coordination.”

ST visited the Senoko site on the morning of March 31, where operations appeared to be proceeding as usual, with Yeo’s lorries and vendors moving in and out of the compound.

At about 10am, two individuals in Yeo’s red polo T-shirts were seen leaving the premises. They declined to comment when approached.

At around 10.15am, another employee walking along Senoko Way said he was not affected by the retrenchment exercise and was unaware of it.

Several employees gathered near the side gate of the building in Admiralty Road West also said they had not been laid off and did not know about the exercise.

Between 9.40am and 11.10am, at least four cars were seen entering and leaving the compound, some carrying groups of employees dressed in Yeo’s uniform.

At about 11.20am, a security officer told ST that all retrenched employees had left the building.

This is not the first time in recent years that the company has retrenched staff. In April 2022, it retrenched 32 employees in Singapore, citing cost pressures.

In December 2024, it announced plans to lay off 25 employees following the closure of Swedish drinkmaker Oatly’s Singapore plant, a $30 million joint venture with Yeo’s.

In a bourse filing, Yeo’s, which is listed on the Singapore Exchange, said it is restructuring its business model in Singapore due to changing consumer patterns and retail conditions as well as increasing cost pressures.

Despite this, the company in 2025 reported a net profit of $21.1 million, up from $6.9 million in 2024. But revenue for the year fell to $292.4 million from $328.6 million before, due to “weaker consumer spending”.

The Singapore-based heritage brand with over a century of history is known for pioneering innovations in Asian beverages and food products. Its range of drinks, including soya milk and chrysanthemum tea, is distributed across more than 30 markets worldwide.

Yeo’s move comes a week after Tiger Beer maker Asia Pacific Breweries Singapore, a wholly owned subsidiary of Heineken, said it will close down large-scale brewing operations in the Republic over the next two years, a move that will involve the axing of 130 roles here.