economy
Company moves from Singapore to cheaper, more spacious Malaysia show rising global mobility trend
Lower costs, tax incentives and access to a larger market have seen a raft of companies shift operations to Malaysia from Singapore.
TL;DR
- Companies are shifting operations from Singapore to Malaysia due to lower costs, tax incentives, and access to larger markets.
- Apparel giant H&M and brewer Heineken are among the companies relocating significant operations.
- This trend is a part of a broader global movement of firms reorienting manufacturing and supply chain networks in response to crises and geopolitical tensions.
- Malaysia offers lower overheads, attractive tax incentives, and industrial space, while Singapore remains attractive for R&D and strategic decision-making.
- The Johor-Singapore Special Economic Zone (JS-SEZ) aims to strengthen business between the two countries and may accelerate this trend.
- Companies are often diversifying regionally rather than mass relocating, using both markets complementarily.