Penang Chief Minister Lim Guan Eng dismissed fears of massive retrenchment in the manufacturing sector when he said unemployment rate here is one of the lowest in the country.

"Our unemployment rate stands at 1.5 percent. There are always ups and downs in the manufacturing sector because they are always carrying out restructuring exercises, it is common for them to do so.

"There are always gains and losses of jobs," he said after attending the first anniversary of JA Solar company in Bayan Lepas.

Lim said the company has pumped in an additional RM200 million in investment, from the initial RM300 million to RM500 million.

"They had a workforce of 1, 000 which will now increase to 1, 300," he added.

"Overall, the situation in Penang is still very positive".

Lim was responding to concerns raised by several quarters including opponents in the MCA that Penang was losing its charm and economic lustre.

However, this was quickly dismissed by Deputy Chief Minister II P Ramasamy who quoted the idiom "one swallow does not make a summer".

Last week, the state's agency, InvestPenang, denied that the latest retrenchment exercise by a company based in the state reflected the industry’s employment climate.

InvestPenang was then referring to TS Solartech Sdn Bhd, the solar cell and module manufacturer located in Penang Science Park, which recently announced the retrenchment of 180 operation staff.