GEORGE TOWN, April 10 — Chief Minister Chow Kon Yeow played down claims of multinational companies (MNC) in Penang closing or retrenching their staff as unconfirmed rumours.
Brushing off a statement issued by Penang Gerakan that named major MNCs in the state, Chow called the information unverified.
“As far as I am concerned, only one has confirmed a layoff of about 100 workers, the others are not confirmed,” he said during a press conference when asked to respond to Gerakan vice president Oh Tong Keong’s statement.
Oh named around 10 MNCs in the manufacturing sector and alleged these were facing shutdowns, layoffs, or partial closure.
Chow also urged the media not to report the unconfirmed claims.
He added that InvestPenang will verify the claims before making any announcement.
“Sometimes, we prefer the factories to make their own announcements but they are very reluctant to make such announcements,” he said.
Chow also said the claims could do “very serious” harm to the firms named if they later prove to be false.
Earlier today, Oh issued a statement asking Chow and InvestPenang director Datuk Seri Lee Kah Choon to state measures the state was taking to prevent the shutdowns, layoffs and relocation he claimed.
He provided a table listing 10 factories in Penang and one in Ipoh under the title “cost reduction measures taken by manufacturing Industry”.
In the table, the factories were variously described as engaged in temporary shutdowns, layoffs, freezing recruitment, repatriating foreign workers and limiting overtime claims.
Oh said the state government has formed a Penang Strategic Investment Advisory Council but this was not stopping the factories from allegedly shutting down or laying off workers.
“The state government must do something to stop MNCs from closing down or relocating and causing thousands to lose their jobs,” he said.
He also said the state government must provide retraining for those who are laid off.
