But while the trend may look like an easy win for its neighbour – bringing investment, jobs and spillover opportunities – analysts say the gains could come with trade-offs, as an influx of firms drives up competition for skilled workers and risks leaving lower-skilled staff further behind.
On May 20, food manufacturing company Gardenia announced it was shifting its bakery production from Singapore to Johor Bahru, resulting in 141 employees being laid off.
The company said the move was part of an ongoing effort to improve operational efficiency and remain competitive amid an increasingly challenging global environment.
Earlier this month, Malaysian media reported that fast fashion retailer H&M would relocate its Southeast Asian headquarters from Singapore to Kuala Lumpur, affecting close to 80 roles in the city state’s office.