Sheng Siong pours S$520 million into new HQ & warehouse that can support 120 stores

Homegrown supermarket chain Sheng Siong broke ground on Monday, Jul. 13, on a new integrated headquarters and distribution centre in Sungei Kadut.

The group says this is its largest investment to date, at approximately S$520 million.

The seven-storey facility will span more than 61,000 square metres, about 2.5 times the size of its current warehouse at Mandai Link, and is expected to be completed in 2029.

When it opens, it will be able to support more than 120 stores across Singapore. Sheng Siong currently runs 90 outlets islandwide.

Robots and automation, but no job cuts

The new facility will be kitted out with automated storage and retrieval systems, robotics, intelligent warehouse management technology and multi-temperature storage zones.

Sheng Siong CEO Lim Hock Chee told The Business Times (BT) that the group had studied warehousing and automation solutions in Europe, China and Australia before designing the facility.

"When completed, it will be one of the most advanced automated grocery distribution centres in Southeast Asia," Lim said.

But he was quick to add that the technology isn't meant to replace anyone.

"Machines can help us improve efficiency, but people will always remain at the heart of our company," Lim told BT.

Instead, Sheng Siong plans to retrain workers in manual and warehouse roles to move into higher-value positions like system operators and maintenance technicians.

Beyond its own workforce, Sheng Siong said in its press release that it hopes the facility will serve as a platform for shared learning, allowing suppliers, industry peers and other organisations to gain practical insights into warehouse automation and the business practices that have supported the group's growth.

Deputy Prime Minister Gan Kim Yong, who attended the ground-breaking ceremony, said automation would "free manpower from repetitive and manual tasks", allowing staff to be redeployed where they add more value, per BT.

Why this matters for your grocery bill

Gan noted that keeping food prices affordable has become harder amid geopolitical tensions, climate change, higher energy costs and global supply chain disruptions.

According to BT, Singapore imports about 90 per cent of its food, making it particularly exposed to these pressures.

The bigger warehouse will let Sheng Siong procure goods at greater scale and plan inventory further ahead, which the company says could support more stable product availability and value for customers.

Gan told BT: “This forward-looking approach is what keeps businesses competitive and keeps Singapore vibrant and resilient. Together, we can ensure Singaporeans continue to enjoy a wide variety of food at affordable prices."