SHATEC, the long-standing hospitality training school, has confirmed a significant downsizing of its operations, resulting in the retrenchment of 42 employees. This move, described by the training centre as a “business containment exercise,” officially began in April. The institution, formerly known as the Singapore Hotel Association Training and Education Centre, was first established in 1983 by the Singapore Hotel Association with the mission of preparing individuals for Singapore’s vibrant hospitality sector.
Reports of the school potentially closing had been circulating, and in response to inquiries, Loh Lik Peng, chairman of SHATEC’s board, indicated on Tuesday that the school was “in the early stages of reviewing its long-term plans.” As part of a broader asset management strategy, the SHATEC building located in Bukit Batok has also been put up for sale. Real estate group CBRE, which is managing the sale, confirmed that the building went on the market in May. The property is currently priced at approximately S$18 million (US$14 million) and holds a lease that extends until 2051. It remains available for sale.
Despite these significant operational adjustments, SHATEC has affirmed its commitment to its current educational programs. In a joint statement released on Thursday with the Food, Drinks and Allied Workers Union (FDAWU), the school stated it 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 decision to embark on this “business containment exercise” was a carefully considered one, made by the school’s board after a “careful consideration and thorough evaluation of its current operation’s commercial viability.” Both Mr. Loh and FDAWU general secretary Sankaradass S/O S Chami highlighted in their joint statement that this exercise will enable SHATEC to strategize its future direction. When directly asked about the exercise, Mr. Loh explained that SHATEC is simply “right-sizing” its operations to align with its present business needs. He further clarified, “It’s a normal business decision to ensure the business’ sustainability.”
Regarding the affected staff, SHATEC had provided advance notice of the retrenchments to FDAWU. The union has since been actively collaborating with the training centre’s management to assist the affected employees. The school also confirmed that it consulted with FDAWU to ensure that “fair compensation packages are extended to the 42 affected staff members.” Mr. Loh concluded by emphasizing the school’s unwavering dedication, stating, “We are 100 percent committed to ensuring we do the very best for our students and staff so this is the priority.” The SHATEC board is expected to make further announcements regarding its long-term plans in the coming months.
