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SINGAPORE: Asia Pacific Breweries Singapore (APBS), which produces Tiger Beer, will scale down brewing operations at its Tuas plant as part of a business transformation.
The move is expected to affect about 130 jobs over the next two years.
Announcing these plans on Tuesday (Mar 24), Heineken, which owns APBS, said large-scale brewing operations at Tuas will be phased down progressively by the end of 2027, with all production of Tiger Beer and other products in its portfolio in Singapore to be shifted to its regional breweries.
"Production will be reallocated to established regional breweries in Malaysia and Vietnam to support a more agile regional supply approach. Over time, the Tuas site will be redeveloped to support regional logistics and innovation activities, including a pilot brewery," it added.
APBS will shift to an import-based supply model over the next two years, Heineken said, noting that imported beers already make up a significant part of the Singapore market, accounting for around half of beer consumed.
Malaysia, Vietnam and China are among the top source markets.
"Singapore will remain the home of Tiger Beer, and we will continue to invest in its future," said Mr Kenneth Choo, managing director of Heineken Asia Pacific.
Tiger Beer was founded in Singapore in 1932.
Its sales volume has doubled over the past 15 years, with more than 95 per cent of its sales now occurring outside Singapore, in over 60 markets worldwide.
Heineken said it will build customer and consumer functions in Singapore to support key import markets.
The Tuas site will be redeveloped to support regional logistics and innovation activities.
Heineken will also build on its only global GenAI Lab, located in Singapore, to support productivity and decision-making across the world.
"As we position the business for the next decade, we will further build Singapore-based capabilities in GenAI, brand leadership and innovation, alongside stronger regional commercial and logistics support," Mr Choo said.
In response to CNA's queries, APBS said that with the shift in operating model, "in some cases, roles will no longer exist".
APBS also said that the announcement does not involve new roles within its GenAI lab.
"Our strategy is to maintain a focused, dedicated team of specialists, and we have built flexibility into our long-term staffing plans based on project demand and strategic priorities."
APBS added that over time, the Tuas site will serve other functions, including the development and testing of new products and flavours, prototyping packaging or formats and testing new consumer experiences for Tiger Beer and its broader portfolio.
The Asia Pacific Breweries plant in Tuas. (Photo: Asia Pacific Breweries Singapore)
GLOBAL JOB CUTS
In February, Heineken said it would cut up to 6,000 jobs from its global workforce and set lower expectations for 2026 profit growth than last year, as the Dutch brewer and its peers faced weak demand.
The job cuts amount to almost 7 per cent of the 87,000-strong, global workforce at the world's No 2 brewer by market value.
Heineken made the announcement following the surprise resignation of its CEO Dolf van den Brink in January.
Heineken told CNA at the time that it was unable to comment on the potential implications the layoffs would have for Singapore.
Heineken said on Tuesday that APBS has informed the relevant government agencies of the changes in Singapore and is working with the Food, Drinks and Allied Workers Union (FDAWU) to provide support to affected employees.
These include a severance package aligned with tenure, support to help with job search and career transitions, reskilling and upskilling with NTUC’s Employment and Employability Institute (e2i), as well as counselling and well-being resources.
UNION'S RESPONSE
In a separate statement, FDAWU noted that the retrenchment package provided by APBS is in line with and unionised norms.
"ABPS has also assured FDAWU that affected employees will be treated with fairness, dignity and respect during this transition," the union said, adding that it would organise job fairs for affected employees.
Affected employees who require assistance may approach FDAWU at 67376088 during working hours or email fdawu [at] ntuc.org.sg.
The Economic Development Board said on Tuesday that it is working with Heineken, Workforce Singapore and e2i to support affected employees, including facilitating job placements.
