Multi-national beverage conglomerate Coca Cola Singapore Beverages announced yesterday (Oct 7) it will shut down its bottling plant in Singapore Tuas and relocate to Malaysia by February 2016.
As a result, 200 Singapore employees will be laid off while the remaining 450 employees are spared. Singapore’s only legalised union NTUC, through its branch, Food Drinks and Allied Workers Union, claimed that the laid-off workers will be fairly compensated and support service to transit into new positions.
Although Coca Cola did not explain their decision to relocate to Malaysia, it is apparent that the MNC wants to take advantage of the falling ringgit which is now trading at its historic low at a range of 3 ringgit to S$1.
The news is another hit to Singapore’s collapsing manufacturing sector which was reported to have declined 8.7% in 2015, with the biomedical output leading the crash at 28.6% decline.
Singapore’s latest GDP figure declined 5% in a single quarter in 2015. If the coming quarterly GDP figure result on Oct 14 is still a decline, Singapore will officially go into a technical recession.