KUALA LUMPUR: Singapore-listed Far East Group Ltd said today it would be ceasing its Malaysia-based manufacturing operations as part of a group-wide restructuring exercise.

The group, in an announcement to the Singapore Stock Exchange, said the cessation of its Malaysian ops, which will take effect today, would affect 39 staff.

"In view of the restructuring, the group expects to incur a one-off non-recurring expense of S$800,000 for the financial year ending Dec 31, 2016," it said.

"The restructuring will result in the group consolidating its existing production of heat exchangers in Malaysia with that of its 84.25%-owned subsidiary Eden Regrigeration Manufacturing (Jiangsu) Co Ltd (ERM) in the People's Republic of China.

"Going forward, ERM will be the main manufacturing entity of the group, covering heat exchangers as well as other refrigeration products," it said.

The restructuring, it said will allow its Malaysian ops to focus on expanding the distribution network of the group's Eden brand heat exchangers.

It added that the exercise dovetails with the group's long-term stategy to raise its group-wide productivity and factory utilisation rates, as well as streamline internal and operational efficiencies.