THE MALAYSIAN Investment Development Authority (Mida) has assured that it is taking proactive and positive steps in response to Goodyear's decision to close its 52-year-old manufacturing facility in Shah Alam.
It said that to mitigate the impact on the affected workforce, the government, through initiatives led by the Ministry of Investment, Trade and Industry (Miti) and Mida, has mobilised a specialised team to facilitate job placements, as well as offer upskilling and reskilling programmes.
Mida has engaged with the Social Security Organisation (Socso) and Labour Department through the newly formed Invest Malaysia Facilitation Centre to facilitate job placement assistance for employees from various sectors.
“This collaborative effort underscores the potential for similarly effective support mechanisms to be extended to those affected by the Goodyear’s Shah Alam 2 plant closure, demonstrating a committed approach to workforce transition and resilience,” Mida said in a statement today.
“This intervention is a testament to our unwavering commitment to supporting our local workforce through transformative industrial changes, drawing on previous successful collaborations with companies undertaking similar rationalisation as part of their business plans for closure or downsizing, ensuring workers are well-positioned for new and fresh job opportunities.
The agency also stressed that it has had an ongoing strategic dialogue with Goodyear and Miti.
‘This dialogue, a testament to our collective preparedness, has ensured that the closure aligns with broader strategic objectives and exemplifies the adaptability and strength of our partnership,” Mida said.
“Importantly, Goodyear, alongside its shareholders, has been in close coordination with the government well before this decision was publicised, working diligently to establish a support framework for the employees.
“This pre-emptive collaboration demonstrates our collective commitment to the well-being of the workforce, underlining that our efforts to assist the affected employees is undertaken with foresight and responsibility.”
Approximately 550 employees will be directly affected by the shutdown.
This development is part of Goodyear's global move aimed to achieve US$1.0 billion in annualised cost savings by 2025. The company has been operating at a loss since 2017, prompting a strategic shift towards optimising its operations.
Mida said that Goodyear has emphasised its dedication to handling the transition with the utmost respect and transparency for all employees and associates.
As part of its restructuring, Goodyear has indicated plans to transition from manufacturing to a distributor business model, focusing on premium profitable segments, building capability in sales and marketing, strengthening the distribution network, and improving the cost structure.
Mida also noted that Malaysia achieved RM329.5 billion in approved investments across various economic sectors in 2023.
Within the manufacturing sector which raked in RM152 billion of this total, a significant 62.9 percent or RM95.5 billion was realised through existing businesses expanding and diversifying their operations.
“This indicates a strong vote of confidence from established companies in Malaysia's economic stability and growth prospects,” it said.
“MIDA’s analysis of annual project implementation reveals a consistent and noteworthy trend: over 85% of approved manufacturing projects in 2021 and 2022 have been implemented.
“For approved projects in 2023, already 50.1 percent of these have reached the implementation stage.”
Mida described this as highly encouraging, considering that manufacturing projects generally take 18 to 24 months to complete, depending on the level of complexity of each project.
“Such achievements reflect Malaysia's substantial potential for delivering attractive returns amidst its journey towards becoming a developed and inclusive economy,” it said.
Malaysia also improved from being ranked 32nd to 27th in the 2023 IMD World Competitiveness Ranking, it added, stressing that this is a testament to the confidence placed in Malaysia by the global investment community. – The Vibes, March 8, 2024
