PETALING JAYA: There is hope yet, not only for employees of Sony Corp, but also for the technology and electronics sector, despite the Japanese electronics giant’s impending exit from Penang.
Of the 3,400 workers in Sony’s Prai Free Trade Zone plant, 1,800 are locals and they are expected to be transferred to its plant in Selangor or be absorbed by other electronics companies in Penang.
Federation of Malaysian Manufacturers president Tan Sri Soh Thian Lai attributed this optimism to the continued strong showing of the electrical and electronics sector.
“The Malaysian Investment Development Authority’s third quarter 2020 investment figures show that this sector remains among the top three within the manufacturing industry in terms of total proposed investments,” he told theSun, underlining the huge prospects awaiting the sector in the near future.
“We strongly believe that the actual unemployment arising from this retrenchment exercise will be minimal. Penang continues to be a hub for electrical and electronics companies in Malaysia,” he said.
Sony had recently announced that it will be shutting its operations in Penang next year as part of a global restructuring exercise.
The company said it would be consolidating its operations with the Selangor plant to further enhance operational efficiency.
Reuters had reported that the company’s decision was made after taking into account market conditions, business growth potential and other factors, as part of a continuous review of its investments and business operations.
General-secretary of the Electronics Industry Employees’ Unions, David Arulappen, said the union’s main concern was on making sure companies provide the best retrenchment benefits to their workers for their years of service.
Arulappen added that in order to ease the workers’ burden of being unemployed, the company should make sure a good compensation package is provided and the state government should play a major role in ensuring that this incentive is forthcoming.
Penang Deputy Chief Minister II Dr P. Ramasamy had earlier given an assurance the state government would provide some assistance to the 3,400 workers affected.
The plant will cease operations by Sept 30 next year and shut down completely by the end of March 2022.
Home audio systems, network Walkmans, headphones and batteries are the main items produced in the Penang plant, while LCD TV sets, Bluray players and other key components are the mainstay of the Selangor plant.
