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[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.

He did not address a query on whether Shatec would eventually close, 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 statement on Thursday (Jul 3) night, Shatec and the Food, Drinks and Allied Workers Union (FDAWU) said that the hospitality school is “conducting a business containment exercise”.

This exercise, which started on 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 (CET) runs. It will teach its “last batch” of pre-employment training students until March 2026 or the committed end date, whichever comes later.

“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.

On its website, Shatec said that 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.

Help for those retrenched

The school is unionised under FDAWU, which is affiliated with the National Trades Union Congress.

Shatec gave the union advance notice of the exercise, under which 42 staff were retrenched.

The union has been working with management to assist those affected 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.

Rachel Loh, executive director for hospitality and tourism talent at the Singapore Tourism Board (STB), said the agency was aware of Shatec’s scaling down of operations.

“Singapore’s tourism sector continues to be well-supported by numerous established training providers,” she noted, citing Republic Polytechnic and Temasek Polytechnic, as well as Workforce Skills Qualifications-accredited training organisations NTUC LearningHub and TMC Academy.

STB remains committed to supporting the sector’s training needs, to maintain its productivity and competitiveness, she added.

Recruitment companies noted Shatec’s long history of supporting the hospitality sector’s training needs – but also the rise of hospitality and culinary courses offered by other institutions.

This will moderate the overall effect of Shatec’s downscaling on talent supply, even as some impact is felt in the short term, said Linda Teo, country manager of ManpowerGroup Singapore.

“The industry’s ability to adapt will depend on how quickly alternative providers can absorb demand and how employers respond to evolving talent pipelines,” she noted.

While Shatec’s downscaling could reduce the supply of trained workers or professionals, this could be “an opportunistic period” for other schools, agreed Julian Tan, founder and chief executive officer of FastCo, which operates job portals FastJobs and FastGig.

Singapore’s hospitality and food and beverage industries face a shortage of trained local workers, he pointed out.

Teo said that if a supply gap emerges, the industry may respond by strengthening partnerships with educational institutions, expanding in-house training, and leveraging government support.

Saudi Arabia institute

Shatec’s Bukit Batok building sits on a 40,901-square-foot (sq ft) plot with a lease tenure until 2051. The property has a gross floor area of 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 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), STB 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.

STB did not address a BT query on how the overseas institute might be affected.