Shutdowns and layoffs at Penang factories is fake news

Penang's investment arm, InvestPenang, has refuted claims circulating in social media about shutdowns, partial closures and layoffs at factories in the state.

The special advisor to the Penang Chief Minister, Lee Kah Choon (photo, above), said the so-called factories purportedly affected have denied the claims when InvestPenang spoke to them.

"Many of these companies are listed locally and abroad, and these fake news may have a bad impact on their share prices and the morale of their employees," Lee told reporters in Penang today.

"These companies affected (by the fake news) are seeking legal advice before deciding on their next course of action," added Lee, who is also InvestPenang director.

Lee said the internal human resource restructuring exercises of the factories are usually carried out to meet changing market conditions and demands.

The manufacturing investment and employment situation in the state, he added, remained stable, with 98 percent of the Penang working population currently gainfully employed.

"The people are advised to desist from circulating this fake news as it is an offence under the Anti-Fake News Act 2018, which carries a fine of up to RM500,000 or a jail term of up to six years or both," Lee warned.

On April 4, the Malaysian Investment Development Authority indicated that investments in the state had dipped to RM5.8 billion in 2018 from RM10.8 billion the year before - which state Chief Minister Chow Kon Yeow described as "normal".

Yesterday, Gerakan deputy president Oh Tong Keong (photo) said he obtained information that many multinational companies in Penang were facing "layoffs, downsizing and relocation".

Oh urged Lee and Chief Minister Chow to explain the countermeasures the state has in place to address these problems.

"Why does Penang's foreign direct investment withdraw one by one, although the state government has such a strong investment advisory council?" Oh, who is also state Gerakan chief, asked.

Describing it as a "very serious situation", he said once foreign direct investments (FDIs) end, it would cause thousands of Penangites to lose jobs.

"The state government should find a solution as soon as possible to solve the problem, including how to handle the massive layoffs.

“The state government must try to help the people who have been laid off to regain jobs that are suitable for them, or provide them re-training to be prepared to return to the workplace as soon as possible," he added.

"The government must also make preparations, at an early date, to control the adverse consequences. Social problems will break out if this is not handled properly." - Mkini