GEORGE TOWN, April 10 — It is normal for companies including factories to carry out human resource restructuring exercises to meet market demands, Invest Penang’s Datuk Seri Lee Kah Choon said.

He said it is normal for companies to evaluate market conditions before conducting exercises such as transfers, reassignment of tasks, voluntary separation scheme (VSS), freeze on overtime and other measures.

He said this does not affect the manufacturing investment and employment situation in Penang which he insisted is stable.

"About 98 per cent of the Penang working population is currently gainfully employed,” he said in a statement issued today.

The special advisor to the chief minister was responding to claims that some factories in Penang are taking cost reduction measures such as partial closure, shutdown, layoffs, freeze on overtime and forced leave.

Penang Gerakan chairman Oh Tong Keong issued a statement earlier today listing 10 factories that are conducting various cost reduction measures.

He had demanded the state government and Invest Penang announce measures to mitigate the effects of these measures.

Lee said Invest Penang had spoken to the factories listed and many denied the accuracy of the news.

"Many of these companies are listed locally and abroad and these fake news may have impact on their share prices and the morale of their employees,” he said.

He added that these affected companies are seeking legal advice before deciding on their next course of action.

He advised the public to stop circulating such fake news.

He said it is an offence under the Anti-Fake News Act 2018 which carries a fine of up to RM500,000 or jail term up to six years or both.

Earlier, Penang Chief Minister Chow Kon Yeow also said the claims by Oh were unconfirmed.

Chow said he had only received information of layoffs of about 100 workers by one factory in Penang.