Japanese electronics giant Matshushita Electric Industrial Co (MEI) may shift its 14-year-old operations in Malaysia to neighbouring Thailand as part of its restructuring plan, a report said today.

Following the recent merger of its information equipment motor business with Minebea Co Ltd, MEI is considering relocating its permanent magnetic motor factory in northern Kedah state to Minbea's plant in Lop Buri, Thailand, the Business Times said.

"They are considering it but nothing is confirmed yet," MEI (Singapore) Ltd. spokesman Junji Kanegawa told the newspaper.

The daily said MEI, which has started restructuring its operations in Japan, Singapore and Malaysia, may still utilise its Malaysian factory to produce a different type of motor.

Move to cut cost

On reports that MEI will slash its 73 sales and production subsidiaries in Southeast Asia by 40 percent over the next three years as it moves less sophisticated manufacturing to China, Kanegawa said this was being considered to improve productivity.

"By financial year 2006, we are considering reducing our overseas companies in the region by 40 percent but nothing is confirmed yet," he said. "The message here is that we will have to be more competitive."

The newspaper said MEI, which is known for its Panasonic and National brands, aimed to boost its sales in China to one trillion yen (US$9.34 billion) in its financial year ending March 2007 from an estimated 300 billion yen this year, while raising sales in Southeast Asia by 27 percent to 600 billion yen. - AFP