Switzerland's Swatch watchmaking group said today it would move production of watch components out of Malaysia to Thailand, with the loss of 500 jobs.

Production at the ETA plant in Ipoh is currently running at reduced level and will cease at the end of the year, the group said in a statement.

Layoffs will begin immediately. Staff will be given a redundancy package and help will be available to find new jobs, Swatch added.

Swatch group blamed the move on falling prices for the "lowest cost" finished watch movements produced for the Asian market in Zhukai, China.

The Chinese factory is supplied by the Malaysian plant.

Production of components is being transferred to the ETA plant in Bangkok.