Kuala Lumpur (May 19) - Global fashion retailer H&M is relocating its Southeast Asia regional headquarters from Singapore to Malaysia as part of a broader restructuring exercise that will also result in workforce reductions within its regional operations.
The move will see Kuala Lumpur become the company’s new Southeast Asian operational hub, reflecting Malaysia’s growing role as a regional business and corporate centre for multinational companies seeking lower operational costs and broader market access within the region.
According to reports, the restructuring exercise will affect approximately 30 per cent of H&M’s regional support workforce, with layoffs taking place primarily in Singapore as operations are consolidated into Malaysia.
The company reportedly described the decision as part of efforts to “optimise operations” and strengthen long-term regional business efficiency.
H&M stated that the relocation is intended to support future growth while allowing the company to better adapt to changing business conditions and regional market demands.
While Singapore has long served as a major headquarters destination for multinational corporations in Southeast Asia, rising operational and labour costs have increasingly pushed some firms to reconsider alternative regional locations, including Malaysia.
Industry observers noted that Malaysia’s comparatively lower business costs, expanding talent pool, and strategic location continue attracting international companies looking to establish or expand regional operations.
The development also reflects intensifying competition among Southeast Asian countries to attract foreign corporate investments and regional headquarters operations.
Overall, H&M’s regional restructuring reflects Malaysia’s growing competitiveness as a business destination while also illustrating the increasingly fluid nature of multinational corporate operations within Southeast Asia.