Yeo Hiap Seng cuts 9% of Singapore headcount as it moves canning operations to Malaysia

[SINGAPORE] Home-grown beverage maker Yeo Hiap Seng is laying off 25 staff from its Senoko facility, or around 9 per cent of its Singapore headcount.

The move comes amid a consolidation of Yeo’s canned drinks manufacturing processes to Malaysia, said the mainboard-listed company in a Tuesday (Mar 31) bourse filing.

It also follows spikes in prices of energy, logistics and raw materials due to the Iran war, which have caused Singapore food and beverage manufacturers to face increasing pressure and rising costs.

“This consolidation enables the group’s Johor and Selangor facilities to optimise capacity utilisation and strengthen overall manufacturing efficiency across its network,” said Yeo’s, adding that it “deeply regrets” the decision.

“The Senoko facility in Singapore will continue to serve as the group’s headquarters, cross-border logistics hub, and smaller-scale manufacturing centre,” the company added.

On Tuesday, The Business Times saw workers – some wearing the company’s uniform – entering Yeo’s 3 Senoko Way compound between 8.20 am and 8.50 am. Some were later seen leaving the building in various modes of transport.

Affected staff were informed of the layoffs during a closed-door briefing on Tuesday morning at the 3 Senoko Way facility.

At around 10.11 am, two individuals wearing company uniforms were seen interacting with a security representative at one of Yeo’s guardhouses, before leaving the compound.

However, they declined to speak to BT on the layoffs when approached.

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A security representative from Yeo’s later told BT and other local media on site at 11.20 am that all the affected employees had left the building by then.

A spokesperson for Yeo’s said the terminations are limited to the group’s Singapore staff force of around 270 workers.

Retrenched staff will serve a garden leave period starting from Apr 1, with their last day of employment on Apr 30.

They will continue receiving salaries and benefits during the garden leave period, alongside support measures to aid their transition, the spokesperson added.

Yeo’s said that it worked closely with the Food, Drinks and Allied Workers Union (FDAWU) – an affiliated union of the National Trades Union Congress (NTUC) – to ensure that the package and transition support reflect its appreciation for the contributions of affected staff.

The company is unionised under the FDAWU, which was present at the beverage maker’s communications session with affected employees on Tuesday to help address questions and concerns.

“Negotiate fair and responsible outcomes”

The union said it received advanced notice of Yeo’s retrenchment exercise and plans to consolidate its canned drinks manufacturing to Malaysia. Following this, it engaged the company “to negotiate fair and responsible outcomes” for affected workers.

“Wherever possible, opportunities for open roles within Yeo’s Malaysia will be offered,” Yeo’s said.

Employees who cannot be redeployed will receive retrenchment packages from Yeo’s, commensurate to salary and tenure, as agreed with the FDAWU and in line with the Ministry of Manpower’s Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, the beverage maker said.

FDAWU noted that the retrenchment packages will be “in line with the collective agreement and unionised norms”.

Besides salary and tenure, provisions will also vary based on employees’ union membership status, with a higher severance payment cap for union members, FDAWU added.

The union is working with Yeo’s to support affected staff with job placements through career guidance and skills upgrading assistance.

It will also connect them to the labour movement’s networks such as the NTUC’s Employment and Employability Institute (e2i).

Affected workers who are Singapore citizens or permanent residents may receive support from e2i in the form of job-matching services, career coaching and skills upgrading advisory, said FDAWU.

The layoffs come as Yeo’s revenue for its latest financial year ended Dec 31, 2025, fell by 11 per cent to S$292.4 million, from S$328.6 million in FY2024.

At the time, the company attributed the decline in its top line to “weaker consumer spending and intensified competition across key markets”.

In its 2026 outlook, the group also cited plans to strengthen competitiveness through several “strategic priorities”, including additional cost discipline measures aimed at maintaining productivity and managing costs to fund business re-investment.

Despite the lower top line for FY2025, the company’s full-year net profit rose to S$21.1 million, from S$6.9 million in the previous financial year.

A storied business

Founded in 1901 by Yeo Keng Lian, Yeo’s started out as a soy sauce factory in Fujian, China, known as Hiap Seng Sauce Factory.

The company moved to Singapore in the 1930s and broadened its product range to canned food and beverages, including soy milk.

In the 1950s, it pioneered the canning of chicken curry and the bottling of soya bean drinks.

In the 1960s, it ventured abroad and began exporting products to markets such as Brunei, the Philippines, Hong Kong, the US and Europe.

Today, the company engages in the manufacturing and distribution of food and beverage products, with production facilities in Singapore, Malaysia and China. Its products under the Yeo’s brand name are sold and distributed to more than 55 countries globally.

Yeo’s was listed on the Singapore Exchange in 1969. In 1995, Far East Organization, the property development group founded by the late Singapore tycoon Ng Teng Fong, acquired a majority stake in the company.

Yeo’s is helmed by chief executive officer Ong Yuh Hwang, who was appointed to the role in January 2023.

The layoffs come a week after another beverage player, the brewer of home-grown brand Tiger Beer, announced plans to trim 130 roles from its Singapore staff force over the next two years.

Asia Pacific Breweries Singapore’s decision came as it sought to scale down brewing operations in Singapore and relocate production to Malaysia and Vietnam.

The recent termination exercise follows two earlier rounds of retrenchments by Yeo’s.

In 2022, the company axed 32 staff, citing a transformation of its business model amid changing consumer patterns and retail conditions as well as rising cost pressures.

Two years later, in December 2024, it announced plans to lay off 25 employees as a result of Swedish drink manufacturer Oatly shuttering its Singapore plant, a S$30 million joint investment with Yeo’s.

The company, which is thinly traded on the Singapore bourse, fell 3.3 per cent to close S$0.02 lower at S$0.58 on Monday.