Business

Shah Alam plants closure: Panasonic offers mutual separation scheme

Those who reject it will be offered internal transfer, says company

Updated 3 years ago · Published on 01 Jun 2023 11:00PM

Shah Alam plants closure: Panasonic offers mutual separation scheme
Panasonic Manufacturing Malaysia Bhd says it would like to maintain a culture of respect and responsibility and has been engaging closely with its employees on this matter while providing assistance and support throughout the process. – Panasonic Manufacturing Malaysia Bhd Facebook pic, June 1, 2023

KUALA LUMPUR – Panasonic Manufacturing Malaysia Bhd (PMMA) employees affected by the closure of two manufacturing departments in Shah Alam 1 (SA1) plant were given a Mutual Separation Scheme (MSS) option with a significant number accepting it.

In a filing with Bursa Malaysia today, PMMA said the company had a rationalisation and business restructuring exercise on March 31, 2023 in line with the said department’s closure.

No other plants or departments were affected. 

“As we operate in an increasingly complex environment, PMMA is constantly looking at how we can best adapt and navigate to maximise business efficiencies and grow the company sustainably,” the filing said. 

“The strategies undertaken are thoroughly thought out and any decisions regarding our workforce are made with the utmost consideration and deliberation,” it said. 

The company was responding to a Malaysiakini article today titled Panasonic to shut down part of Malaysian operations, hundreds to be jobless. 

PMMA said it would like to maintain a culture of respect and responsibility and has been engaging closely with its employees on this matter while providing assistance and support throughout the process. 

Employees who opted for the MSS during the rationalisation exercise have received fair and equitable compensation packages above industry norms, the company said.

Those who rejected the MSS will be offered a transfer to other departments within PMMA, it said.

On the 2016 and 2017 lawsuits, the company said they have been resolved and are unrelated to the rationalisation and business restructuring exercise.

In a separate filing, PMMA managing director Kenji Kamada has resigned effective May 31 following a change of representative at Panasonic Holdings Corporation, Japan.

In yet another filing, it announced the appointment of Takashi Sugihara as the managing director effective June 1.

Sugihara has over 35 years of experience with the Panasonic Holdings Corporation Group. – Bernama, June 1, 2023

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