SINGAPORE: Tiger Beer may be winding down its Singapore brewing operations after a 96-year run, but the home-grown beer brand will continue to be managed and led from Singapore, where key decisions will still be made, Heineken Asia Pacific managing director Kenneth Choo tells The Straits Times.
“Singapore will continue to be home for Tiger Beer.
“This is not going to change,” he said in an exclusive interview on March 25.
Choo added that the brand is not defined by where it is brewed, noting that about 95% of Tiger Beer is already produced outside Singapore across six breweries.
Heineken acquired Asia Pacific Breweries Singapore (APBS), which has brewed Tiger Beer in the Republic since 1932, from Fraser & Neave in 2012.
Since the acquisition, APBS has also been brewing Heineken beer for Singapore consumption, although Tiger Beer remains the favourite here.
On March 24, the Dutch brewer said the brewing of Heineken and Tiger Beer in Singapore will be progressively phased out over the next two years, with production shifting to its breweries in Malaysia and Vietnam.
Choo said the decision was driven by ageing brewing and packaging equipment at the Tuas brewery, with replacement costs comparable to building a new facility in Singapore.
“We have been at a cost disadvantage in Singapore for some time now and need to play catch-up with other importers,” he said, noting that about half of all beer consumed in Singapore is imported from lower-cost markets such as China and Malaysia.
“We expect to have lower fixed costs going forward, which will put us in a better position to compete,” Choo added, noting that imports of Heineken and Tiger Beer into Singapore are likely to increase after production is relocated, and that prices will remain unaffected.
Heineken’s move to reduce costs and optimise its brewing network in South-East Asia comes as demand for Tiger Beer in the region has grown consistently over the past 15 years, driven by rising affluence and an expanding population.
Choo noted that consumption of Tiger Beer far outpaces Heineken in South-East Asia, where the Singapore beer brand is one of the most popular.
In contrast, demand for Heineken in other markets such as Europe has faltered, resulting in a 2.4% drop in Heineken’s beer sales globally in 2025, the brewer said in February.
Asia remains the region where beer demand is still going strong and where there is still opportunity for Heineken to grow,” Choo said.
The decision to wind down production in Singapore was also driven by Heineken’s global goal of achieving net-zero from its brewing operations by 2030. The brewer noted that limited access to renewable energy here has made it harder to meet that target locally.
Net-zero refers to achieving a balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere, resulting in no net increase.
As a result of the restructuring, 130 production workers will be made redundant from now until the end of 2027, about 50 of whom are foreigners, Choo said, adding that the decision has been communicated to those affected well in advance, giving many up to two years to find new roles.
APBS employs a total of 530 workers, before accounting for the lay-offs.
The move will enable Singapore’s role to evolve and pave the way for new talent to take up higher-value jobs, Choo said, noting that the Tuas brewery will be repurposed into a regional hub to experiment with new Tiger Beer recipes as well as orchestrate regional sales and logistics.
Heineken in March 2025 also opened its global generative artificial intelligence (AI) lab in Singapore – its first specialised hub to develop AI solutions for improving productivity and customer engagement across its operations. Applications include automated marketing content and AI-driven financial reporting.
The unit currently employs 16 people and this is expected to grow, moving forward. — The Straits Times/ANN
