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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.
AsiaOne
a day ago
- Business
- AsiaOne
'Cracks in the wall': Shatec reportedly closing down amid operational difficulties, Singapore News
Shatec, a hospitality and tourism training institute in Singapore, is reportedly shutting down after more than 40 years of operation, due to operational difficulties. Chinese publication Shin Min Daily News reported that real estate firm CBRE has been appointed as the exclusive marketing agent for Shatec's main campus building at Bukit Batok Street 22. The four-storey property is reportedly listed for sale at $18 million, with its land lease expiring in 2051. Responding to queries from AsiaOne, Shatec's chairman Loh Lik Peng said that the institute is currently in the early stages of reviewing its long-term plans. "The sale of the building is part of Shatec's asset management strategy. As the review is still ongoing, we are unable to provide further comments," said Loh. Shin Min reported that after an evaluation, the Shatec board concluded that the current model was no longer sustainable and made the difficult decision to begin winding down operations from April 1. Shatec's Orchard campus, which had been in operation for just over a year, reportedly closed at the end of June. 'Competition grew from ITEs and polytechnics' Speaking to AsiaOne, former Shatec student Joel Lee Xuan Zhao shared his experience at the institute, while reflecting on early signs of a possible closure. "There were cracks in the wall, and I knew one day Shatec would close down due to the increase of culinary courses in the Institutes of Technical Education (ITE) and polytechnics," said the 20-year-old, who is currently serving his National Service. "Nowadays, people prefer a local diploma from publicly recognised schools like ITE or the polytechnics. Shatec needed to reinvent its curriculum to remain relevant and competitive." Despite the news, Lee recalled his time at Shatec fondly, describing it as a meaningful experience. "I had a wonderful time making friends and learning. My time there was definitely memorable." Lee studied culinary arts at Shatec for a year before leaving to intern at a restaurant, followed by his National Service. Courses still being offered at Shatec's main campus include a final round of pre-employment training programmes such as professional diplomas, as well as continuing education and training courses for adult learners. All remaining courses are expected to be discontinued by the first quarter of next year. Established in 1983 by the Singapore Hotel Association, Shatec is regarded as a pioneer in local hospitality and culinary education. Over the years, Shatec has produced approximately 40,000 alumni across more than 20 countries, many of whom now hold diverse roles in the hospitality and tourism industry. Notable alumni include local actor Pierre Png, who studied tourism, and renowned chef Justin Quek. [[nid:679734]]
