Miti: Eight major MNC factories have closed shop

Putrajaya has confirmed that eight multinational corporations (MNCs) have shut down their factories in Malaysia.

The eight are Rubicon Technology Inc, Seagate Technology PLC, British American Tobacco (BAT), Samsung, Amphenol Corp, Fairchild Semiconductor International Inc, STR Holdings Inc and SunEdison Semiconductor Ltd.

This was revealed in a Ministry of International Trade and Industry (Miti) parliamentary written reply to Ranau MP Ewon Ebin, who sought clarification on reports that several MNCs have wound down their operations in Malaysia.

The ministry said three companies mentioned by Ewon - Japan Tobacco International (JTI), Suzuki Motor Corporation and Western Digital - still have factories operating in the country, but the companies are being restructured.

Suzuki's automotive arm shut down its retail operations in Malaysia last year. There are currently no official distributors of Suzuki vehicles in the country.

The ministry said the eight factories which shut down involved RM5.4 billion in foreign direct investment (FDI) and 6,412 jobs loss.

"Among reasons for winding down are weak markets due to disruptive technology, acquisition by other companies and restructuring to ensure international competitiveness," read the written reply.

However, Miti said there was a silver lining because 2016 saw nearly 5,000 new projects involving RM207.9 billion in FDI.

"The investments will create 153,060 new jobs," said the ministry. -Mkini