Five foreign firms closed down from May to September
Other factors which led to foreign investors withdrawing their investments from Malaysia include the contraction in the global economy and market volatility resulting from the decline in demand and sales. Ong Kian Ming, Deputy Minister of Trade and Industry
KUALA LUMPUR: Five manufacturing companies involving foreign investors closed down during the May-September period, involving investments worth RM308.7 million, said Deputy Minister of Trade and Industry Ong Kian Ming.
Subsequently, 362 local workers were also laid off following the closures which were due to business decisions and not because of the transition in the government, he said.
“Other factors which led to foreign investors withdrawing their investments from Malaysia include the contraction in the global economy and market volatility resulting from the decline in demand and sales,” he told the Dewan Rakyat yesterday.
He was answering a question from Datuk Seri Ikmal Hisham Abdul Aziz (BN- Tanah Merah) on the number of foreign investors who had withdrawn their investments from the country and the value involved.
Ong said the reason for the closures also included rising operational costs and lack of demand for products, forcing the investors to restructure their companies and business strategies, with some deciding to withdraw their overseas investments, including the ones in Malaysia.
He said Malaysia’s increasing focus on quality and high technology investments, the technological shift towards digitalisation and Industry 4.0, as well as rising labour costs had left investors, especially those involved in labour- intensive projects, unable to adjust their operations.
As such, they faced difficulties in continuing their operations while maintaining their long term profits in the country.
Ong said local workers who were laid off were offered suf ficient compensation packages by the companies, which also cooperated with the Federation of Malaysian Manufacturers and other companies to rehire those about to be terminated.
The companies also collaborated with the Human Resources Development Fund (HRDF) to help the workers to participate in the appropriate skills training programmes via the HRDF Outplacement Centre.
“Under the scheme, local workers who were laid off would be equipped with additional industrial skills or the necessary qualifications to enable them to be re-employed or to be self-employed,” Ong said. — Bernama