More than 4,700 will lose their jobs in the next three months as the electronics sector is hit by the global economic downturn, the country's human resources minister has warned.

dr s subramaniam interview 210308 01 S Subramaniam told state news agency Bernama that 102 companies had informed the Labour Department that 4,749 workers would be put out of a job between January and March, with most coming from the electronics sector.

"We cannot stop companies which are making losses from retrenching their workers. But we will do all we can to aid these workers to receive their compensation," he told Bernama late Monday.

"I am very thankful that the workers' unions here have not been violent, unlike in other countries, that they have been quite calm about all of this," he added.

Action centre set up

electronic factory worker 231208 Subramaniam told Bernama his ministry had set up an action centre at every district to monitor companies or employers who might be facing financial difficulties.

"Our officers will visit these companies and compile a weekly report which would be sent to the state and finally be compiled at central level.

"This would enable our ground force to ensure that the employers will meet their obligations towards their workers," he added.

He said the workers included 1,500 at hard-drive manufacturer Western Digital, which announced the losses last week at its plant in Sarawak.

Malaysia's electronics sector has been hit hard by a drop in global demand for electrical and electronics goods, with the government announcing a RM7 billion stimulus package to reinforce the economy and maintain growth momentum.

Big players still here

Meanwhile in Putrajaya today, Deputy Prime Minister Najib Abdul Razak stressed that no multinational corporation (MNC) had left the country following the slump in the world economy.

According to a Bernama report, he clarified that most of the MNC's had only reduced their operations.

"Some are downsizing their operations but are not leaving," he said after chairing the National Land Council meeting.

He was also asked about the possibility of small and medium industries (SMIs) closing down next year as a result of the economic instability.

"The government is ready to consider ways to assist. The SMIs are facing an extraordinary situation which has caused a shortfall in the demand for their products," he said.

He also expressed the hope that the ministries concerned would forward their suggestions to the government.