GEORGE TOWN – Electrical and electronics (E&E) manufacturers are sounding the alarm that Penang’s inability to shake off the Covid-19 surge could adversely impact their production output amid growing global demand for digitalisation components.
While the E&E sector has been a bright spot in Penang’s economy despite the downturn, the virus has been spreading quickly through it due to workers’ close proximity during operations and in their living spaces.
Officials at the Federation of Malaysian Manufacturers’ (FMM) northern chapter told The Vibes that a high number of production staff work in close quarters, especially at the assembly and testing lines, while some also stay in cramped housing.
They said that it is ironic that Covid-19 is pushing up the demand for digitalisation, which includes electronic chips. Penang is part of the global supply chain of this product.
Many factories here need to keep operating to meet rising global demand.
Datuk Ooi Kok Seng, head of international accounting firm KPMG’s Penang branch, said that E&E is leading the manufacturing sector’s recovery, which in turn will positively impact the state’s economy, provided that Penang can mitigate the pandemic well.
It was recently disclosed that some 70% of total Covid-19 cases in Penang between June 1 and July 14 were due to workplace clusters involving factories.
The state has on the average recorded about 1,500 new cases daily over the past week.
It was also reported that surging infections in Penang have threatened to slow down production, worsening the shortage of semiconductors and other components that global industries like automotives, communications, and others rely on.
Malaysia, especially in Penang, has also emerged as a major centre for chip testing and packaging, with many being key suppliers for automakers.
Analysts have reportedly forecast that the chip shortage will cost car firms more than US$100 billion (RM415 billion) in lost production this year alone.
FMM northern chapter chairman Datuk Jimmy Ong Chin Keng acknowledged the debilitating effect the virus has had on factories.
“Most factories have taken precautionary measures such as strict standard operating procedure compliance. However, cases are still increasing, though many of them are asymptomatic.”
The imposition of twice-weekly RTK-Ag tests for all workers is detecting infections more quickly now, which is good as coronavirus transmissions are disrupted.
Ong said however that more help is needed to ensure factories can operate without causing clusters to emerge.
Furthermore, he said that the reported Delta variant of concern has also caused a spike in infections in Penang.
“We strongly advise all industries to take extra caution and continue with more mass testing to pick up cases early.
“All workers should also be vaccinated as soon as possible to avoid further complications,” he said. – The Vibes, September 4, 2021
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