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.
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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.
