Firms shift operations from singapore to improve efficiency

Firms shift to Malay­sia

Cross­ing over for growth

Firms shift oper­a­tions from singa­pore to improve effi­ciency

25 Jun 2026

PETALING JAYA: Com­pan­ies are increas­ingly shift­ing man­u­fac­tur­ing, logist­ics and regional headquar­ters from Singa­pore to Malay­sia, with H&M, Gardenia, Heineken and Yeo’s among the latest to relo­cate or expand oper­a­tions here.

The Malay­sian Invest­ment Devel­op­ment Author­ity (Mida) said the moves were part of a broader trend as com­pan­ies reas­sess where best to loc­ate man­u­fac­tur­ing, logist­ics, headquar­ters and sup­port func­tions to drive future growth.

Mida chief exec­ut­ive officer Datuk Sikh Sham­sul Ibrahim Sikh Abdul Majid said busi­nesses were no longer look­ing at loc­a­tions solely based on costs, but are increas­ingly focused on oper­a­tional effi­ciency, sup­ply chain resi­li­ence, tal­ent avail­ab­il­ity and long-term growth poten­tial.

“Rather than view­ing this as a single relo­ca­tion trend, we see it as part of a broader regional optim­isa­tion strategy,” he said in an inter­view.

Last month, Swedish fash­ion giant H&M announced that it was relo­cat­ing its South-east Asia headquar­ters from Singa­pore to Kuala Lum­pur.

Also in May, Malay­sian bread man­u­fac­turer Gardenia said that it was mov­ing its bakery pro­duc­tion in Singa­pore to Johor Baru.

In March, mul­tina­tional brew­ing com­pany Heineken announced it was shift­ing pro­duc­tion from Singa­pore to Malay­sia and Viet­nam.

Earlier this year, bever­age brand Yeo’s said it was clos­ing its man­u­fac­tur­ing facil­ity in Sen­oko, Singa­pore, and con­sol­id­at­ing man­u­fac­tur­ing oper­a­tions in Johor and Selangor.

Accord­ing to Mida, Malay­sia con­tin­ues to attract interest across a wide range of activ­it­ies, includ­ing man­u­fac­tur­ing, logist­ics, regional headquar­ters, digital oper­a­tions, engin­eer­ing and shared ser­vices.

It said investor interest remains par­tic­u­larly strong in data centres and digital infra­struc­ture, semi­con­duct­ors, advanced man­u­fac­tur­ing, logist­ics, renew­able energy and green tech­no­logy.

Malay­sia approved Rm92.8bil in invest­ments across 1,249 projects in the first quarter of 2026, with the projects expec­ted to cre­ate 50,226 jobs, rep­res­ent­ing a 46.7% increase in job cre­ation com­pared with the same period last year.

The top sources of approved for­eign invest­ments were Japan, China, the United States and Singa­pore.

Johor attrac­ted Rm16.9bil in approved invest­ments across 191 projects dur­ing the quarter, cre­at­ing 8,287 jobs.

The Johor-singa­pore Spe­cial Eco­nomic Zone con­tin­ued to strengthen invest­ment momentum by improv­ing con­nectiv­ity and cre­at­ing a more integ­rated eco­nomic eco­sys­tem between the two coun­tries.

Sikh Sham­sul Ibrahim said Malay­sia and Singa­pore were increas­ingly being viewed as com­ple­ment­ary loc­a­tions, with many com­pan­ies main­tain­ing stra­tegic func­tions in Singa­pore while loc­at­ing man­u­fac­tur­ing, logist­ics and oper­a­tional activ­it­ies in Malay­sia.

“To remain com­pet­it­ive, our focus extends bey­ond attract­ing invest­ments to ensur­ing projects are imple­men­ted suc­cess­fully and con­tinue to expand in Malay­sia,” he said.

Among its pri­or­it­ies are strength­en­ing investor facil­it­a­tion and after­care ser­vices, accel­er­at­ing project imple­ment­a­tion through the Invest Malay­sia Facil­it­a­tion Centre, and attract­ing qual­ity invest­ments that cre­ate skilled jobs, encour­age tech­no­logy trans­fer and strengthen domestic sup­ply chains.

The agency is also pla­cing greater emphasis on sup­plier upgrad­ing, tal­ent devel­op­ment, industry col­lab­or­a­tion and higher-value activ­it­ies, par­tic­u­larly in sec­tors such as semi­con­duct­ors, digital infra­struc­ture and advanced man­u­fac­tur­ing.

Sikh Sham­sul Ibrahim said Malay­sia was mov­ing bey­ond tra­di­tional assembly activ­it­ies in the semi­con­ductor industry towards higher-value areas such as design, advanced pack­aging and innov­a­tion, sup­por­ted by eco­sys­tem devel­op­ment and industry part­ner­ships.

“When estab­lished regional com­pan­ies choose to expand or strengthen their pres­ence in Malay­sia, it reflects con­fid­ence in what the coun­try has to offer – a skilled work­force, strong infra­struc­ture and a gov­ern­ment that is com­mit­ted to facil­it­at­ing invest­ment,” he said.

by ALLISON LAI and Ger­ard GIMINO

25 Jun 2026

More global and regional com­pan­ies are mov­ing their Singa­pore oper­a­tions here, part of a broader invest­ment wave set to cre­ate thou­sands of new jobs. Busi­ness groups say the shift is per­man­ent, but eco­nom­ists warn that the coun­try must reduce the red tape and build up tal­ent and infra­struc­ture to reap the full rewards.

PETALING JAYA: Global and regional firms increas­ingly view Malay­sia and Singa­pore as com­ple­ment­ary des­tin­a­tions rather than com­pet­ing loc­a­tions, say busi­ness groups.

They said firms are split­ting man­u­fac­tur­ing, logist­ics and oper­a­tional func­tions across both mar­kets to improve effi­ciency and sup­port growth.

Asso­ci­ated Chinese Cham­bers of Com­merce and Industry of Malay­sia pres­id­ent Datuk Ng Yih Pyng said Malay­sia is emer­ging as a key bene­fi­ciary of regional sup­ply chain realign­ment.

“I believe this is no longer merely a trend, but rather a struc­tural shift driven by changes in the global eco­nomic and geo­pol­it­ical land­scape.

“With sup­ply chain restruc­tur­ing, ongo­ing trade ten­sions and com­pan­ies reas­sess­ing their regional strategies, more busi­nesses are look­ing for an oper­a­tional base that is stable, stra­tegic­ally loc­ated and well-con­nec­ted to regional mar­kets,” he said.

Ng said Malay­sia’s appeal extends bey­ond its rel­at­ively com­pet­it­ive oper­at­ing costs.

He poin­ted to the coun­try’s stra­tegic loc­a­tion, con­nectiv­ity to regional mar­kets and prag­matic approach in global affairs as key advant­ages.

“Whether serving the Asean mar­ket, the broader South-east Asian region or inter­na­tional mar­kets, Malay­sia offers strong con­nectiv­ity and access­ib­il­ity.

“This is one of the key reas­ons why more regional firms and mul­tina­tional cor­por­a­tions are shift­ing parts of their man­u­fac­tur­ing, logist­ics, oper­a­tions and even regional headquar­ters func­tions to Malay­sia,” he said.

Malay­sian Con­sor­tium of Midtier Com­pan­ies pres­id­ent Mar­tin Ang said Malay­sia’s attract­ive­ness also lies in its estab­lished indus­trial eco­sys­tem, mul­ti­lin­gual work­force and policy con­tinu­ity.

He said areas such as Johor and Greater Kuala Lum­pur are see­ing stronger interest from firms relo­cat­ing or expand­ing oper­a­tions from Singa­pore, sup­por­ted by estab­lished sup­ply chains and tal­ent eco­sys­tems.

Ang noted that Malay­sia’s long-stand­ing strengths in man­u­fac­tur­ing and semi­con­duct­ors con­tinue to provide investors with con­fid­ence.

However, both busi­ness lead­ers stressed that Malay­sia can­not afford to become com­pla­cent.

“The real com­pet­i­tion going for­ward will not only be about who offers lower costs, but who can provide higher value, greater effi­ciency and a more com­plete indus­trial eco­sys­tem,” Ng said.

He said Malay­sia’s pri­or­ity should be attract­ing qual­ity invest­ments that can trans­form the coun­try into a high-value eco­nomy, rather than remain­ing a low-cost pro­duc­tion base.

Among the main areas that need atten­tion are tal­ent devel­op­ment in arti­fi­cial intel­li­gence (AI), semi­con­duct­ors, advanced man­u­fac­tur­ing and the digital eco­nomy, as well as improve­ments in logist­ics, trans­port con­nectiv­ity and digital infra­struc­ture.

Ang agreed, say­ing a short­age of spe­cial­ised engin­eers, AI tal­ent and advanced tech­ni­cians remains a chal­lenge for higher­value indus­tries.

He also high­lighted grow­ing demands on infra­struc­ture, par­tic­u­larly power and water resources, as indus­trial and data centre invest­ments con­tinue to expand.

At the same time, he cau­tioned that local small and medium enter­prises face increas­ing pres­sure from low-cost imports and global sup­ply chain dis­rup­tions.

They said stronger col­lab­or­a­tion between mul­tina­tional cor­por­a­tions and local firms would be cru­cial to ensure tech­no­logy trans­fer, strengthen domestic sup­ply chains and help Malay­sian com­pan­ies move fur­ther up the value chain.

Ills of having no will, Never too late to write a will

 

CLICK TO ENLARGE

Ignorance, cultural attitudes cause many to overlook estate planning

by ALLISON LAI

The total amount in frozen inheritance assets and unclaimed money has surged past the Rm100bil mark, with possessions of the deceased not distributed smoothly due to a lack of estate planning. As for uncollected funds, amounts range from small sums up to thousands of ringgit and more.

KUALA LUMPUR: Frozen inheritance assets has reached a staggering RM90bil, with experts attributing this to a lack of estate planning among Malaysians.

According to official statistics, the frozen assets include properties, shares, investments, and other capital belonging to deceased persons that cannot be distributed yet due to unresolved legal or administrative matters.

And if this does not pose a big enough headache, there is also the total in unclaimed money which stands at RM13bil.

ALSO READ: Planning ahead will save family the stress

The Accountant-General’s Department listed unclaimed money to include salaries, dormant bank accounts, insurance payouts, and deposits yet to be claimed by the rightful individuals; amounts range from several ringgit up to thousands of ringgit and more.

While frozen inheritance assets involve the estates of the deceased, unclaimed money can also entail living individuals.

Financial Planning Association of Malaysia general manager Alice Wong said many younger professionals and middle-income earners in the country still believe that estate planning is only necessary for the wealthy or elderly.

With such a mindset, many do not consider writing a will, she said.

“The reality is, if you have assets and dependants and a wish for how things should be handled after you are gone, a will is relevant,” she said in a recent interview.

Wong said cultural attitudes also play a role, as many families remain uncomfortable discussing death and inheritance matters.

She said many mistakenly believe that assets will automatically go to the “right people”.

“If you die without a will, your estate is distributed according to the Distribution Act for non-Muslims, which follows a fixed legal formula that may have nothing to do with what you actually want,” Wong pointed out.

She said another common misconception is that a will alone will allow families immediate access to assets.

“In practice, assets are often frozen upon death, and the will still needs to go through the courts to obtain a Grant of Probate before anything can be distributed,” she said.

A Grant of Probate is a court document that gives an executor – usually a trusted family member, friend or named lawyer – the authority to manage and distribute a deceased person’s estate according to the will.

Wong said some people also wrongly assume verbal promises or informal notes to be sufficient

“Spoken instructions and casual, unwitnessed writings carry no legal weight and are one of the biggest causes of family disputes after someone passes away,” she said.

Wong advised Malaysians to start with a legally valid will, review their Employees Provi-dent Fund and insurance or takaful nominations regularly, and keep proper records of assets and liabilities.

“Estate planning does not have to be overwhelming. Getting proper guidance early can save your family a great deal of stress and complications down the road,” she said.

Lawyer Joshua Kong said a common legal problem families face when someone dies without proper estate planning is disagreements over how inherited properties should be handled.

“The root of the problem is that a property suddenly has multiple new legal owners after the death, and these new owners disagree on whether it should be sold, or for how much,” he said.

Kong said a properly considered and drafted will could potentially prevent years of legal disputes among surviving family members.

“A will can dictate how the deceased’s properties are to be dealt with, including how it should be sold and who gets the proceeds of the sale,” he said.

If there is no will, Kong said distribution of assets for non- Muslims will instead follow the Distribution Act, which determines how an estate is divided among surviving family members.

He said disputes involving inherited properties could become increasingly complicated over time, especially when beneficiaries themselves die and their shares are transferred to the next generation of heirs.

“Those next of kin may have different ideas on how to deal with the property, and the cycle continues,” he said.

Related stories:

• Planning ahead will save family the stress

Enhance fraud detection, checking banking fraud

 

CLICK TO ENLARGE

Calls for improvements in detecting suspicious banking transactions

 KUALA LUMPUR: Banks and financial institutions are facing growing scrutiny on whether measures are in place to detect suspicious online transactions before customers fall victim to scams.

The issue has come under renewed focus following a Sessions Court ruling ordering a bank to compensate a customer RM166,000 over suspicious online transactions that went undetected.

As scams evolve, banks are facing heightened urgency to identify unusual transaction patterns and act fast, particularly as fraudsters exploit human behaviour and then move in to breach banking systems.

At a Bank Negara workshop on consumer protection and fair conduct reforms, its officers said existing laws protect the confidentiality of customer information and personal data in the financial sector.

“Financial institutions are robust but there is always room for improvements,” the officers said yesterday.

They said enforcement actions had been taken in instances where breaches were identified, including requiring the institutions involved to implement corrective action plans.

The officers also said Bank Negara continued to monitor banks on consumer protection and compliance matters.

In its latest annual report, the central bank stressed the need to strengthen fraud detection systems and reinforce internal safeguards to combat sophisticated online scams.

The central bank said banks and non-bank financial institutions were required to adopt advanced fraud detection measures and strengthen internal safeguards to quickly intercept suspicious transactions.

It also stressed for a proactive approach to prevent fraudulent transactions from escalating.

The central bank said that in recent years, financial institutions had strengthened various security measures including tighter fraud detection rules and triggers, cooling-off periods for new device registrations and stronger authentication methods.

These measures contributed to a 52% decline in unauthorised fraudulent transactions involving malware and phishing reported in 2024, and prevented over Rm399mil in attempted fraudulent transactions, it said.

However, Bank Negara also acknowledged that fraud patterns were becoming increasingly complex and harder to distinguish from genuine customer activity.

Bank Negara said banks and consumers shared responsibility for safeguarding digital banking security, but reiterated that financial institutions had to determine whether weaknesses in their internal controls contributed to fraud incidents.

It also introduced the Selfcompensation Framework for Fraud Transactions (SEFT) under its Policy Document on Ensuring Fair Treatment for Victims of Unauthorised e-banking Transactions.

SEFT outlines how banks should assess fraud cases and determine compensation based on the responsibilities of both financial institutions and customers.

According to Bank Negara, more than 95% of online fraud cases in Malaysia involved authorised transactions – where victims were manipulated into willingly transferring money to scammers.

Federation of Malaysian Consumers Associations (Fomca) vice-president Datuk Indrani Thuraisingham agreed that banks should adopt more proactive intervention measures when transactions appear inconsistent with a customer’s normal behaviour.

“Banks are clearly not doing enough. Fraudsters now exploit human behaviour more than banking systems,” she said.

“Banks must transition from passive logging to active, pre-emptive intervention.”

https://www.thestar.com.my › nation › 2026/05/22 › sle...

Related post:

Banks must rethink fraud controls as AI risks rise

Sleek scams call for both banks, customers to play their part

The Star

https://www.thestar.com.my › nation › 2026/05/22 › sle...