In a statement released to the press, Panasonic Malaysia denied that it would be shutting down the operations of several of its factories in Malaysia.
The verdict is clear, Panasonic Malaysia will not be closing its doors in Malaysia.
Yesterday (June 1), reports by Malaysiakini stated that the company, which has been operating in Malaysia since 1965, was reportedly planning to close some of its manufacturing plants in the country.
This decision is expected to result in hundreds of workers losing their jobs.
One of the divisions that has already been shut down is the kitchen appliances manufacturing operations in the SA1 plant in Shah Alam, affecting 75 local workers.
According to the report, the closures are believed to be part of a global production realignment strategy by Panasonic Group, aiming to optimize operations and adapt to changing market conditions.
However, shortly after the article had gone viral, Panasonic Malaysia issued a statement denying that it would be shutting down the operations of several of its factories in Malaysia.
Clearing the air, Panasonic clarified that it is only closing down two product manufacturing departments at its SA1 plant in Shah Alam after completing a rationalization exercise and business restructuring on 1 March.
The company stated that no other plants or departments are affected by the closures.
Additionally, they also noted that some employees in the affected departments were given the option of a mutual separation scheme (MSS), and a significant number of them voluntarily chose this option.
Panasonic assured that those who opted for the MSS received compensation packages that are fair and above industry norms.
For the remaining employees who did not choose the MSS, the company’s human resource department has offered them the opportunity to be transferred to other departments within Panasonic Malaysia, in positions that align with their skills and potential for growth.
Besides that, citing an unnamed source, Malaysiakini also added that Panasonic’s decision to close some of its operations was reportedly influenced by the company losing two lawsuits in the previous year.
The lawsuits involved former suppliers, executive director Chen Ah Huat, and employees.
The unnamed source claimed that Chen was asked to leave the company in 2013, and the contracts of 15 managers were terminated as well.
However, Panasonic has stated that the two lawsuits, which were filed in 2016 and 2017, have been “successfully resolved.”
The company emphasized that these legal cases are separate and unrelated to the recent rationalization exercise and business restructuring, which was completed on 31 March.