H&M moves South-east Asia HQ to Malaysia, triggers Singapore layoffs

Swedish fashion giant H&M has laid off staff in Singapore as it shifts its South-east Asian headquarters to Kuala Lumpur, marking a major operational reshuffle in the region, as mentioned by strait times.

The move, announced internally to employees on May 11, has affected close to 80 roles in Singapore out of a regional workforce of 256, according to reports in Malaysia. 

While the company declined to confirm the exact number of redundancies, the scale of the cuts has raised fresh questions about Singapore’s position as a regional corporate base for global retailers.

Strategic shift

In a statement to local media, H&M said it was reviewing its operations to stay “flexible, efficient and fast-moving” as customer expectations continue to evolve.

The retailer stressed that Singapore remains an important market despite the restructuring. It confirmed it would continue operating an office in the city-state alongside its retail footprint.

The relocation of the regional headquarters to Malaysia reflects a broader trend of companies reassessing operational costs and regional strategies amid changing economic conditions in Asia.

Union response

Singapore’s labour movement has stepped in to offer support to affected workers.

The Singapore Manual and Mercantile Workers’ Union said some impacted employees could be union members even though H&M Singapore itself is not unionised.

Andy Lim, secretary-general, SMMWU said, “The union and the National Trades Union Congress are prepared to assist workers with job placement support and financial aid where necessary.”

He also urged companies undergoing restructuring to work closely with unions to ensure employees receive adequate support during transitions.

Industry pressure

The latest cuts come as global fashion retailers continue to face pressure from rising operational costs, changing shopping habits and slowing consumer demand in several markets.

For Singapore, H&M’s decision is another sign that multinational firms are increasingly rethinking where they base regional operations, with neighbouring markets such as Malaysia becoming more attractive for expansion and cost efficiency.

Retail footprint

H&M entered Singapore in 2011 with the launch of its flagship Somerset store and quickly expanded across the island.

However, the retailer has gradually reduced its physical presence in recent years. Its prominent two-storey Ion Orchard outlet closed in March 2023 after more than a decade in operation. Stores at Tampines Mall and Waterway Point were also shuttered earlier.

The brand now operates six outlets in Singapore.