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Straits Times
3 hours ago
- Business
- Straits Times
Hospitality school Shatec cuts jobs amid corporate downsizing
Sign up now: Get ST's newsletters delivered to your inbox Shatec has retrenched 42 staff while it reviews its long-term plans. SINGAPORE – Uncertainty surrounds the future of hospitality training school Shatec after 42 staff members were retrenched on July 3. The layoffs come after the school closed its training restaurant,The Sapling, in March and put its building at 21 Bukit Batok Street 22 on the market for around $18 million in May. Shatec declined to respond to The Straits Times queries about the roles of staff who have been dismissed or the remaining strength of its workforce. The Food, Drinks and Allied Workers Union (FDAWU) said it has been working with Shatec to assist affected staff and secure fair compensation packages in line with its collective agreement with the school. The union is also connecting workers to NTUC's Employment and Employability Institute for job matching services, career coaching and skills upgrading advice. The job cuts announced on July 3 follow a 'business containment exercise' that involved a 'scaling down of operations while reviewing its long-term plans', said Shatec and the FDAWU in a joint statement. 'This decision ... will allow Shatec to strategise its future direction,' the July 3 statement noted. Top stories Swipe. Select. Stay informed. World Trump says countries to start paying tariffs on Aug 1, floats range of 10% to 70% Singapore Sengkang murder: Man accused of killing elderly mother escorted back to crime scene Singapore Tourism bump from Lady Gaga concerts raked in up to estimated $150m for Singapore economy Singapore Jail for man who recruited 2 Japanese women for prostitution at MBS Asia Malaysia dismantles ISIS network involving workers from Bangladesh Asia Manila's mayor returns to office to face mountains of rubbish Asia Chinese national missing in Thailand rescued, embassy warns of shady job offers Business Central banks tweak US dollar reserves, with euro and gold gaining ground: UBS survey Shatec added that it will continue to run its continuing education and training (CET) programmes, while focusing on teaching the last batch of its pre-employment training (PET) students, a process that will extend into early 2026. The SHA, which represents 167 Singapore hotel members, noted in August 2024 that Shatec would move from PET to focus mainly on CET. The school received its last intake of PET students in September 2024. Shatec chairman Loh Lik Peng said on July 4 that it is still in the 'early stages' of reviewing its long-term plans, which includes the sale of its building. 'As the review is still ongoing, we are unable to provide further comments,' he added. Shatec was launched by the Singapore Hotel Association (SHA) in 1983, a time when a solid pipeline of professionals was needed to support Singapore's growing popularity as a travel destination. The school, which provides courses in Singapore and across the Asia-Pacific region, has trained around 40,000 people in the hospitality sector over the years. A LinkedIn user who studied at Shatec said he often reminisces about dining at training restaurants such as Petals and Rosette. He noted on July 2: 'The quality of service depended on your luck and the food was hit and miss. They were training restaurants helmed by Shatec trainees after all. But there was a charm about it.' Another LinkedIn user noted that studying at Shatec was the dream of people looking to enter the hospitality sector. 'I've also dined at their student-run restaurants, where learners cooked, served and practiced their craft with pride and heart. You could taste the effort, feel the service,' she added.
Business Times
7 hours ago
- Business
- Business Times
Shatec building sale part of asset management strategy, amid long-term plan reviews
[SINGAPORE] The sale of Shatec's Bukit Batok building is part of the hospitality school's asset management strategy, with the institute 'currently in the early stages of reviewing its long-term plans', said board chairman Loh Lik Peng in response to queries from The Business Times. But he did not address a query on whether Shatec is gradually closing, or whether its first overseas institute in Saudi Arabia is affected. 'As the review is still ongoing, we are unable to provide further comments,' Loh said. In a joint media statement on Thursday (Jul 3) night, Shatec and the Food, Drinks and Allied Workers Union (FDAWU) said the hospitality school is 'conducting a business containment exercise'. This exercise, which took effect from Apr 1, resulted in a scaling down of operations while reviewing Shatec's long-term plans, said Loh and FDAWU general secretary Sankaradass S Chami. Shatec will continue its committed continuing education and training runs. It will teach its 'last batch' of pre-employment training students until March 2026 or the committed end date, whichever comes later. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up 'This decision, made by the Shatec board after careful consideration and thorough evaluation of its current operations' commercial viability, will allow Shatec to strategise its future direction,' said the statement. The Sapling, which Shatec operated as a training restaurant for its students, closed in March this year. On its website, Shatec said the move was made as the institute 'transitions away from full-time programmes'. Its building at 21 Bukit Batok Street 22 was put up for sale in May by CBRE, the exclusive marketing agent. It was priced at around S$18 million, with the sale to be conducted via private treaty. A satellite campus in Orchard Road, opened in January 2024, reportedly closed at the end of June 2025. 42 staff affected The school is unionised under FDAWU, which is affiliated with the National Trades Union Congress. Shatec gave the union advance notice of the exercise, which saw 42 staff retrenched. The union has been working with management to assist these staff and ensure fair compensation, in line with unionised norms, said the statement. Previously known as the Singapore Hotel Association Training and Education Centre, Shatec was set up in 1983 by the Singapore Hotel Association (SHA) to develop a talent pipeline for the hospitality industry. It offers courses in hospitality, tourism and culinary arts. In response to queries about Shatec's potential closure, SHA referred BT to Loh's official statement. Bukit Batok building, Saudi Arabia institute According to CBRE, Shatec's Bukit Batok building sits on a 40,901-square-foot (sq ft) land plot with a lease tenure until 2051. The property has a gross floor area of around 64,548 sq ft. The site is designated 'Business 1' in the Master Plan 2019. With a plot ratio of 2.5, it allows a built-up area of about 102,253 sq ft, 'offering substantial redevelopment potential', CBRE said in May. 'The property is well-built to support light manufacturing and production usage, as well as regional (research and development) offices,' it added. In March 2024, Shatec announced that it was opening its first overseas institute in Riyadh, with classes to begin in the second half of the year. This was supported by Enterprise Singapore (EnterpriseSG), the Singapore Tourism Board and the Saudi Arabian government. With the support of an EnterpriseSG grant, Shatec signed a licence agreement with Modern Hospitality Company, a joint venture by Saudi companies that would fund and run the school.
Business Times
8 hours ago
- Business
- Business Times
Sale of building is part of ‘asset management strategy' as Shatec reviews long-term plans
[SINGAPORE] The sale of Shatec's Bukit Batok building is part of its asset management strategy, with the hospitality school 'currently in the early stages of reviewing its long-term plans', said board chairman Loh Lik Peng in response to queries from The Business Times. But he did not address a query on whether Shatec is gradually closing, nor whether Shatec's first overseas institute in Saudi Arabia is affected. Said Loh: 'As the review is still ongoing, we are unable to provide further comments.' In a joint media statement on Thursday (Jul 3) night, Shatec and the Food, Drinks and Allied Workers Union (FDAWU) said the hospitality school is 'conducting a business containment exercise'. This exercise, which took effect from Apr 1, resulted in a scaling down of operations while reviewing its long-term plans, said Loh and FDAWU general secretary Sankaradass S Chami. Shatec will continue its committed continuing education and training runs. It will teach its 'last batch' of pre-employment training students until March 2026 or until the committed end date, whichever comes later. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up 'This decision, made by the Shatec board after careful consideration and thorough evaluation of its current operation's commercial viability, will allow Shatec to strategise its future direction,' said the statement. The Sapling restaurant, which Shatec operated as a training restaurant for its students, closed in March this year. On its website, Shatec said the move was made as the institute 'transitions away from full-time programmes'. Shatec's building at 21 Bukit Batok Street 22 was put up for sale in May by CBRE, the exclusive marketing agent. It was priced at approximately S$18 million, with the sale to be conducted via private treaty. A satellite campus in Orchard Road, opened in January 2024, reportedly closed at the end of June 2025. 42 staff affected The school is unionised under National Unions Trade Congress-affiliated FDAWU. Shatec gave the union advance notice of the exercise, which affects 42 staff. The union has been working with management to assist these staff and ensure fair compensation, in line with unionised norms, said the statement. Previously known as the Singapore Hotel Association Training and Education Centre, Shatec was set up in 1983 by the Singapore Hotel Association (SHA) to develop a talent pipeline for the hospitality industry. It offers courses in hospitality, tourism and culinary arts. In response to queries about Shatec's potential closure, SHA referred BT to Loh's official statement. Bukit Batok building, Saudi Arabia institute According to CBRE, Shatec's Bukit Batok building sits on a land plot of about 40,901 square feet with a lease tenure until 2051. The property has a gross floor area of approximately 64,548 square feet. The site is designated 'Business 1' in the Master Plan 2019. With a plot ratio of 2.5, it allows a built-up area of approximately 102,253 square feet, 'offering substantial redevelopment potential', said CBRE in May. 'The property is well-built to support light manufacturing and production usage, as well as regional R&D offices,' it added. In March 2024, Shatec announced that it was opening its first overseas institute in Riyadh, Saudi Arabia, with classes to begin in the second half of the year. This was supported by Enterprise Singapore (EnterpriseSG), the Singapore Tourism Board and the Saudi Arabian government. With the support of an EnterpriseSG grant, Shatec signed a licence agreement with Modern Hospitality Company, a joint venture by Saudi companies that would fund and run the school.
CNA
a day ago
- Business
- CNA
42 retrenched after SHATEC scales down operations in ‘business containment exercise'
SINGAPORE: 42 people were retrenched after SHATEC scaled down operations in a 'business containment exercise', said the training centre on Thursday (Jul 3). SHATEC, formerly known as the Singapore Hotel Association Training and Education Centre, was set up in 1983 by the Singapore Hotel Association to train those entering Singapore's hospitality industry. In response to questions about reports of the school closing down, chairman of SHATEC's board Loh Lik Peng stopped short of confirming the news, but said on Tuesday that it was 'in the early stages of reviewing its long-term plans'. The SHATEC building in Bukit Batok is up for sale as part of its asset management strategy, he said. Real estate group CBRE, which is overseeing the sale, said the building was put up for sale in May. Priced at approximately S$18 million (US$14 million), its lease ends in 2051, and the building is still on the market, it told CNA. SHATEC will continue to fulfill continuing education and training courses that it has committed to and focus on teaching the last batch of pre-employment training students until March 2026 or the committed end date, whichever is later, the school said in a joint statement with the Food, Drinks and Allied Workers Union (FDAWU) on Thursday. The 'business containment exercise', which took effect in April, resulted in a scaling down of operations while the school reviews its long-term plans, said Mr Loh and FDAWU general secretary Sankaradass S/O S Chami in the statement on Thursday. The decision was made by the school's board after 'careful consideration and thorough evaluation of its current operation's commercial viability', and this will allow SHATEC to strategise its future direction, read the joint statement. SHATEC provided advance notice to FDAWU about the retrenchments, and the union has been working with the training centre's management to assist affected staff, the statement said. The school has also consulted with FDAWU to ensure that fair compensation packages are extended to the 42 affected staff members.
