Yongnam buys Johor industrial land to move factory operations

SINGAPORE (Aug 23): A wholly-owned subsidiary of Yongnam Holdings is buying three parcels of industrial land in Johor for RM46.7 million in order to move its factory operations there, according to a Business Times report.

In an exchange filing yesterday evening, the group said it has been experiencing higher fabrication labour costs at its Singapore factory over the years, and intends to move most of its factory operations to Malaysia.

“This move is expected to result in cost saving in fabrication labour cost for the group as well as other ancillary staff costs such as accommodation and transportation,” it noted.

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This article first appeared in The Edge Financial Daily, on Aug 23, 2016. Subscribe to The Edge Financial Daily here.