26/05/2026
๐๐ข๐๐ข๐ฅ ๐ฆ๐๐ง ๐ง๐ข ๐๐๐๐ข๐ ๐ ๐ฆ๐๐ก๐๐๐ฃ๐ข๐ฅ๐โ๐ฆ ๐ง๐ช๐๐ก ๐๐ก๐๐จ๐ฆ๐ง๐ฅ๐๐๐ ๐ข๐ฃ๐๐ฅ๐๐ง๐๐ข๐ก๐ฆ ๐๐จ๐ โ ๐๐ก๐๐๐ฌ๐ฆ๐ง
The growing trend of manufacturing companies relocating operations from Singapore to Johor is expected to further strengthen the stateโs position as a regional industrial and logistics hub through the โtwin operationsโ model, which has become a key strategy among many international companies.
Independent analyst Nazri Hamdan said that under this model, companies retain high-value functions such as management, research and development (R&D), finance, and branding in Singapore, while transferring manufacturing and production operations to Johor.
He said this approach aligns with the aspirations of the Johor-Singapore Special Economic Zone (JS-SEZ), which targets the entry of 50 projects within its first five years, while creating approximately 20,000 high-skilled jobs.
According to him, Johor can no longer be viewed merely as a low-cost destination for factory operations, but is now evolving into a high value-added industrial centre supported by technology and a skilled workforce.
โPreviously, factories from Singapore or other countries came because of low costs, but we no longer need only that. We need more than just jobs,โ he told BH.
Singapore was recently reported to be facing major changes in its manufacturing sector, particularly in the food and beverage (F&B) industry, as leading companies such as Gardenia and Yeo Hiap Seng (Yeoโs) have begun relocating part of their production operations from Singapore to Malaysia.
For example, Gardenia announced that its bread production operations would be moved to Johor Bahru, affecting around 141 workers in Singapore. Meanwhile, Yeoโs consolidated its canned beverage manufacturing operations in Johor and Selangor last March as part of its operational restructuring efforts.
However, the Singapore government and business media view these developments as part of the republicโs new economic strategy to retain high-value functions such as headquarters operations, R&D, finance, and management, while relocating manufacturing activities to countries with more competitive operating costs, such as Malaysia.
๐ ๐๐๐ง๐๐ก๐ ๐ง๐๐ ๐ก๐๐๐๐ฆ ๐ข๐ ๐ ๐ข๐๐๐ฅ๐ก ๐๐ก๐๐จ๐ฆ๐ง๐ฅ๐ฌ
Elaborating further, Nazri said the success of the twin operations strategy depends greatly on Johorโs ability to provide a talent pool that meets the needs of modern industries, including automation, robotics, manufacturing artificial intelligence (AI), and semiconductors.
He noted that if local talent can be developed according to industry requirements, Malaysians will not only have opportunities in conventional production sectors, but also be able to fill high-value positions such as robotics engineers, manufacturing AI specialists, and semiconductor technicians.
He explained that manufacturing operations require large-scale use of land, utilities, labour, and local resources, thereby generating broader economic spillover effects for Johor compared to management functions that remain in Singapore.
โFor example, a RM2 billion electronics factory may employ 3,000 workers directly. At the same time, thousands more jobs will be created through their vendors for local communities,โ he said.
Nazri added that the entry of major Singaporean manufacturing companies would also stimulate the growth of the local vendor ecosystem, as these companies require support from various related industries.
Among the sectors expected to benefit are logistics, packaging, machine maintenance, cold chain logistics, industrial software, technical wiring, and the supply of production support equipment.
โIf a Singaporean food company worth RM500 million sets up operations in Johor and hires 1,000 workers, behind it there could be 20 logistics companies, 15 packaging vendors, forklift companies, and many other technical vendors that will also benefit,โ he said.
However, he cautioned that local vendors must quickly improve their capabilities and operational standards in order to meet the demands of increasingly complex high-technology industries.
He warned that if local companies fail to upgrade their capabilities, foreign companies may continue relying on overseas vendors, limiting the economic spillover benefits to local industry players.
Nazri also stressed that Malaysia needs to be more aggressive in developing an industry-driven Technical and Vocational Education and Training (TVET) system, similar to Germanyโs โdual trainingโ model, which combines classroom learning with direct industrial training in factories.
