GEORGE TOWN, Aug 27 — Penang’s exports grew by 10 per cent in the first six months of the year thanks to its electrical and electronics (E&E) sector, Chief Minister Lim Guan Eng revealed, saying the trend is a promising boost for the state’s manufacturing industry.
“This is because the export sector consists mostly of the manufacturing industry and in Penang, that is mainly the E&E sub sector,” he said.
“So there is no problem with our manufacturing sector.”
As for Fairchild Semiconductor’s imminent closure of its plant in Penang, Lim said it was not due to a problem in the manufacturing industry.
He pointed out that the firm is also shutting down its plants in Utah, in the United States, and in Korea, apart from its Penang base.
“So it is a company problem, not the manufacturing sector problem,” Lim said.
He added that there is still some 20,000 job vacancies in Penang so those laid-off after the plant shutdown should not face problems finding work.
“We have new companies investing here such as Sandisk and reinvestment by Seagate with another major investor coming in a few months later,” he said.
The chief minister also expressed hope that with the growth in Penang’s E&E and manufacturing sector, Fairchild will be able to recover soon.
Yesterday, InvestPenang director Datuk Lee Kah Choon said the closure of the chipmaker’s plant will not negatively impact the job market in Penang.
This is following Fairchild Semiconductor International Inc’s recent announcement that it will close aging plants in West Jordan, Utah; Penang, Malaysia; and Bucheon, South Korea.
The corporation spokesman Bruce Fienberg said the closures may affect up to 15 per cent of Fairchild’s about 9,000 employees but the number of job cuts hasn’t been fixed yet.
The closure of the plants, to take place between the second and fourth quarters of next years, is expected to bring annual savings of US$45 million to US$55 million to the company.
