The Penang government has dismissed speculation that the state is facing an investment crisis and that many multinational companies are laying off their workers or even shutting down.

Deputy Chief Minister II P Ramasamy, who is in charge of the state’s human resources committee, said the situation is not worrying.

“Of course, there is the fear of companies being shut down, bought over or moving out and laying off their workers," said the state executive councillor on education and human resources, science, technology and innovation.

“Penang is trying hard to find investors, at the same time we are aware that the manufacturing sector is problematic,” Ramasamy told Malaysiakini .

“That is why I think Penang investment should refocus on the service industry, which can offset the impact of manufacturing plants closing down,” he said.

However, Ramasamy, said there is no need to panic as the state government is monitoring the issue closely. It will see how things develop in the next few months and has measures in place.

'Look at it in a positive manner'

“We should not to be alarmed by the situation but look at it in a positive manner and see how we can ride out this phase,” said the Prai assemblyperson.

Ramasamy also brought up the retrenchment exercise of 6,000 employees by Malaysia Airlines that was part of the company’s restructuring.

“We took immediate steps to address the situation. We will also do same for the multinational companies if the need arises,” he said.

More importantly, he said, Penang has done its best to make the state attractive to investors.

However, there is not much the state can do about national politics and the investor confidence crisis due the devaluation of the Malaysian ringgit and revelations that RM2.6 billion were deposited into the Prime Minister Najib Razak’s ( photo ) private accounts before the 2013 general election.

“Penang is part of Malaysia. We can only do so much - but the federal government is not doing enough to attract more investors,” Ramasamy claimed.

“We don’t blame foreign investors for looking at other countries. In Penang, the only thing we can do is show we are proactive - even though we have been ostracised by the federal government and treated like a black sheep as when were left out of the 2016 Budget,” he added.

Ramasamy was responding to a WhatsApp message on the state’s manufacturing sector that is currently going viral.

It claimed, among others, that: “Western Digital: to close down Penang plant & move to KL. HGST: to close down Penang plant & move to JB.

Amphenol: Bayan Lepas Phase 1 plant will shut down end of this month & move to China. Motorola Penang acquired by Sanmina except the R7D dept. Dell; Acquired EMC on 12 Oct with price tag of $67 billion”.

The message also said: "All these shutdowns and acquisitions are disturbing. Penang is losing its shine as an industrial state. Manufacturing will eventually move out of Penang and Malaysia to other SEA countries".

Real situation

Penang human resources liaison committee chairperson Ajit Singh Jessy also dismissed as “untrue” the contents of the WhatsApp message.

Ajit ( photo ) said the committee is in direct contact with the companies and has been informed of the real situation.

“For example, we checked with Western Digital and have been told they are not moving out. Motorola is in the process of being bought, so there are no layoffs there.

“For Amphenol, only their operations in the island will be closed, as they are servicing only one major client in Penang. The others are in China, which is why it is are relocating there. But its company on the mainland is functioning as normal.

“It has only 30 direct staff on the island, and they will be paid retrenchment compensation. Hopefully we can find them alternative jobs,” Ajit added.

He said Dell is consolidating its position as it has acquired a major company.

“It’s bad when these WhatsApp messages are going around without verification. Nobody called us to confirm,” said Ajit, a lawyer by profession.

“People in KL are calling me to ask if Penang is facing a disaster and I said no,” he added.