Exports of electrical and electronic products fell 35 per cent in Jan 2009
So Intel has started laying off workers in Kulim, according to The Edge:
KULIM: Intel Malaysia, which is closing two of its microchip production facilities in Penang — a move which will affect over 1,000 workers — has started laying off employees at its Kulim facility which has more than 3,500 workers.
Sources told The Edge Financial Daily that at least 16 people out of 26 employed in the department in charge of maintaining the three plants in Kulim were asked to leave yesterday.
According to a source, the workers were not offered a voluntary separation scheme or even asked if they wanted to leave.
“They were told their services were no longer needed and it was not restricted to any age group or hierarchy. The affected employees were technicians, supervisors and even managers.
“They are being paid a severance package of 1.5 months’ salary for every year of service,” the source said.
It is learnt that more employees from other departments would also be asked to leave in the coming days and months but their number could not be ascertained.
No choice, no VSS…
This is why you can’t always believe all the ‘spin’ you read. Recall what Guan Eng had said in this Bernama report on 22 January on the Intel plant closures.
Lim said: “There would not be any job losses for those working in Penang Intel as the multinational company is only consolidating its branches with its employees moving to Kulim.”
I guess he was only referring to “Penang Intel” and not Kedah (Kulim) Intel! He also mentioned the possibility of VSS.
And remember how Intel’s corporate affairs manager had spun it when she said that the workers would be offered comparable positions in Intel’s other Malaysian plants. Quote from a Star report:
“It is safe to say that the company has no plans to lay off any workers for now,” she said.
Very safe to say… with the emphasis on “for now”.
Meanwhile, Flextronics International, one of the world’s largest contract manufacturers, is reportedly shutting an assembly plant in Shah Alam and retrenching 1,382 workers.
The slump in the electronics industry is going to hit Malaysia hard: exports of electronic and electrical products plunged 35 per cent in January 2009, compared to the same month last year. Putting a rosy spin on such a dire situation is unhelpful and misleading.
Can we not begin thinking of alternatives to our export-oriented FDI-driven economic model?
Lim Guan Eng’s biggest problem is that he likes cheap and stupid public blitz without realizing that it will haunt him later on. He is leading a state government void of solutions and with his suspicion mind he will not trust NGOs. He rather trusts developers, which will end up in the drains after suffering from the worst recession in decades.
He didn’t even realize after the recession he will end up with a lot of abandoned projects from his trusted developers, the one that can bring prosperity to Penang.
He also believe all the big talks from corporate leaders and make stupid statements which make people like me vomit each time he told us that the layoff is not serious in Penang. I received a notification way back in Nov 2008, that the company I work with will officially close down at the end of March 2009. Not serious? And what solution, he has in mind, just echo whatever the previous Gerakan state government said.
Each time Guan Eng open his mouth in his cheap public blitz, he really make me sick. He has no time for serious works, he has no time to look at serious proposals. He has no time to seriously look for talents to help him, instead he shuts off public consultation and participation. He pays lip services to NGOs and activists.
He has no solution to solid waste problem, no solution for flash floods problem, he has no solution for hill slope developments yet he want to develop the hills especially during recession, not afraid of abandoned projects. He has no solution for abandoned projects. He has no solution for public transport. He has no solution to ease the traffic congestion on Penang bridge and any other roads in Penang. He has no solution on how to face a local government election which will deprive him the only state revenues he has. He has no solution in dealing with the resurrection of Zakaria Derus in Penang. He has no solution on how to be self-sustainable the day he loss the local councils in a local election. He has no solution on economy stimulus except keep asking us to spend our money; RM7billion not enough, RM10 billion not enough, want RM30billion. For what only he and GOD know. He has no solution on how to entertain NGOs and activists.
He has no solution on town planning and land use. He has no solution on agriculture nor any other form of industries except rely heavily on manufacturing industries which he has no control. He has no solution to deal with the pollution caused by the leakage of sewage discharge that go to the sea. He has no intention to raise alert to those stay in Nibong Tebal about the pollution caused by Pulau Burung. He just keep quite, pretending we all are fool.
He likes to boost but no solution. He betrays all those who vote for change not for same.
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It is unavoidable.
I think he did try to persuade Intel not to take this move. But as a politician, what he should do?
1. Tell it earlier that Intel is going to retrench? This means he already gave up the fight even before trying to persuade Intel.
2. Intel indeed laying off. It is unavoidable, as electronics took a big hit and in business, profit and cutting cost to survive is everything. Malaysia is not really a good place to continue anymore, their 15 years plan in Malaysia is time-up. Their profit and cost graph becomes narrow. Intel will ditch Malaysia just like they ditch Philipines. Time is up.
3. Guan Eng is just unlucky that he becomes CM in these tiring times. But Penangties, you are the one that screw up for the last 50 years, don’t blame Guan Eng. I believe he did his best to help persuade Intel, but in the end, MNC decisions are made based on business situation not political.
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And the joker want to rely on tourism during recession, hopefully foreigners will come to Penang to spend their monies. What monies? If the world still have monies, no recession lah! Bodoh!
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Flextronics Shah Alam close down is unavoided as many knows. SonyEricsson its biggest customer have been moving out from Malaysia since 2007 and 2008
they did nothing even the rumour and story gaining momentum….it have now lead to the closure of Nolato at near by Shah Alam…. cripple the business for company like Polymatech at Shah Alam…. Green point at Sungai Petani and another company called Balda at Ipoh.
the impact is far more since there’s other supplier that supply to SonyEricsson thru Flextronics Shah Alam….
no one was interested on economics…they enjoy waving Keris….making all sorts of cheap skate statement.
plus they react very slow to all the problem….
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Not only unhelpful and misleading, it’s downright irresponsible
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Over the last one year, I have been harping at some of the PR leaders to come out with several Master Plans for the state. We very badly need an Industrial Master Plan, A Tourism Master Plan, and Environment Master Plan. Until now, nothing!
However the only thing which is being spoken about is the Halal Hub Master Plan. Sorry to say, I had gone thru’ some of the planning work done, and it looks like it has been put together by a group of SPM students.
In the 1st 3-6 months, LGE was meeting every Entrepreneur and businessmen in the state. They were all lining up to market their products which they felt will modernize Penang. After a while, LGE and team realized what was happening & none of these would really help.
Now, with the pressure from businessmen, the Technocrats, and the Intellectuals who offered to help the state govt are basically sidelined. Hence, our PR Govt is now playing ear, resulting, in the full-scale changing of Majlis Perbandaran councillors.
LGE and TEAM, bring the intellectuals back to chart out Master plans and visions for the short, medium and long term.
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Eu Soon,
Your CM is Lim Guan Eng NOT God!! It is fair to have expectations when you vote for change but reasonable time must be given. You really expect LGE to have solutions to all the problems above in ONE YEAR when Gerakan did not have any in 18??!! Be realistic!
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fishhook,
He is not GOD, but he is still boasting about how great he is after BN agree with him to plunder Malaysian taxpayers of RM50 billion. Read the latest news report in Sin Chew if you know mandarin.
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ong spoke too soon about not engaging ngos.
http://thestar.com.my/news/story.asp?file=/2009/3/9/nation/20090309142840&sec=nation
A Penang Transport Council has been established to tackle the long standing transportation woes in the state.
In announcing this, Local Government and Traffic Management Committee chairman Chow Kon Yeow said the council would be formalised in two weeks time, would look into the short, mid and long term action plans on how to improve transport problems and issues in the state.
Chow said the council was an extended version of a working group on transport, established in May last year, that had presented their major findings and recommendations to him.
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agree with fishook. the way eu soon is complaining LGE has no solution to this, that, this, that… so long list… is as thought he is expecting LGE to be god. come on, it’s only his one year of rule – give him a break.
i also echo timmy that LGE is unlucky to be the CM in these untiring times, and we penangites, who are here for most of our lives all these years, are more to be blame than him who is CM for a year.
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I would like to agree with ‘Fishhook’ that we have to be realistic, however, word of ‘advice’ to Pakatan’s led Govertment in Penang, do not under estimate the peoples of Penang and do not over-develop Penang, this is what the past politicians learnt. God Bless Penang.
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LRT system to PENANG!!!
it will definitely stimulate the economy of PEnang!!!
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You guys have to remember LGE have to work triple hard to get somethings going than Tsu Koon, because the whole government of Penang is still full of old government people.
No federal support is a huge blockage to any CM in the 5 states. You need to survive on your own. In a year, he has to clean up the s*** of 18 years, try to re-simulate the economy with minimal funds and to meet all your voters expectation. He is under huge pressure and have been trying to voice out his concern as well.
You all do nothing to help, just know how to complain. He is willing to listen, but is their any immediate way of solving this economy crisis. How much effort he put in the background, did you all see?
After 1 year, you all expect the see the sun is rounder and the grass is greener. Change comes gradually with a heart to change. You don’t change a country or a state in a year. All systems need to be corrected before change can take effect.
If you are so impatient, go back to BN then next election. I am sure next election they are going to promise you the high sky as your reward to vote them back. We, as Malaysian breed this BN culture for 50 years only to realise we are making mistakes all these while.
We anti DAP for so long, now because of realization of the tree that we are hoping for is sucking more and more nutrition from us, we want DAP to instantly take over the tree but forgetting its 50 years root is just too deep to clean.
LGE is one of the better performing CM in Malaysia. Comparable to Nik Aziz. Look at Kelantan, they survived so long without the help of the government, but their people is so patient and trusted Nik Aziz is the MB they want.
Give him time. Things may appear bad now. But judging too early is always not correct. Remember how Penangties was so happy that finally a Penang people becomes PM (pak lah) 5 years ago. Now you see, we just can’t judge things too early!!
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Ong ES: what have you done to improve Pen state through your ‘inputs’ during the previous BN-Govt period? If for so many years you could not, then please tone down your aggression on this 1 year PR-Govt. Your behaviour reflects you as being shallow – not sincere.
I see that the roads of Penang are now cleaner. There are not so many illegal car-park attendants anymore. I ask you again – during the previous Pen-BNGovt, what have you manage to get improvements? If not – please go gripe somewhere else rather than trying to paint impatient and speckled grey pictures to other readers.
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Aisay, he could have been saying what he was told .. that the Penang chaps are asked to go to Kulim. And been in US company before, retrenchment can be quite drastic. Perhaps the MD that reassures LGE also need to swallow pride since direction comes from US.
Relate to the story on Microsoft. Same story when some big chap reassures that there is not retrechment as it is not a culture, one month later she was asked to retrench 10% of their MY staff.
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It is a GLOBAL recession, you fellas.
What makes u think Penang would be spared?
Our economy is built on exports, foreign multinationals and tourism!
Even if our one and only activity is planting paddy, we would be affected!
This is a storm we can’t avoid.
However, I am glad that we have LGE at the helm in this trying times. At least his heart is in the right place. And he is trying.
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Malaysia badly needs “Role Model” established Leaders & Politicians of HONOUR with Calibre, Maturity & Tolerance without Fear or Favour & NOT Political OPPORTUNISTS – on BOTH sides of the Political Divide.
This nation Desperately needs Intelligent, Time Proven Pragmatic Successful modelled, Financial & Politiical “SOLUTIONS” NOW on BOTH sides of the Political Divide, to MITIGATE the IMPENDING Political & Financial fallout.
Today all the PR Politicians, CM LGE, MBs, Dewan Speaker, etc & us citizens are all faced with the fact that ALL Federal & State Government Secretariats, Institutions, GLCs, etc are filled to the brim with “Holier-than-thou” Chiefs & Moronic Goons right down to their office boys…
- Selected & appointed based on only one skin colour coding & “Do what your Federal Political Masters want” versus Meritocracy, Responsibility, Accountability & Delivery.
- That is why the Penang CM, Perak’s ex MB & Selangor MB cannot move faster nor achieve much….
- with their resources stretched to limits addressing all the Political Distraction & Childish Charades by UMNO/BN.
- Remember they all started with “Zero Files” when they took over?
- Constantly being Politically & Administratively sabotaged by the Federal Ministries, Federal Funds masters, State Secretariats & their Mercenary Goons!
- Denials, Ego & “Alternative Tactics” instead of Intelligent, “Constitutional, Political & Financial SOLUTIONS.”
- With the UMNO/BN Leaders “Bankrupt of Intelligent, Legal, Constitutional, Political, Financial, etc SOLUTIONS”….
- they will always be in Denial & therefore will resort to “Alternative Tactics” which can only be found in their Gutter Politics & Law of the Jungle “Holy Book”!
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Like it or not, more VSS coming to Penang factories. Either volunteer or “paksa rela”.
LGE should just shut up if he don’t have the facts. In fact, he cannot even rely on the information by the companies themselves. Some are layouts are corporate driven from US and the sites folks will not even have the latest information.
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