More bad news in the electronics industry in Malaysia.
German firm Qimonda, which has a plant in Malacca, has filed for bankruptcy in Munich – thanks to a global glut in memory chips.
From the Qimonda website:
Region: Malacca / Senai
No. of employees: approx. 1,100
Areas of activity: Research and Development, Design and Testing, Production, Purchasing, Logistics, Planning and Controlling, Information Technology and Service, Support and Staff Functions
Meanwhile workers at Intel are worried they might end up with no proper compensation following the closure of the firm’s two plants in Penang, as the excerpt from this NST report suggests. No severance package?
While Intel has assured that it intends to offer some 1,000 affected Malaysian employees comparable jobs within its existing facilities in Penang and Kulim, a veil of insecurity and uncertainty is now shrouding those affected.
They are mindful of the fact that Intel’s existing facilities are running at a far lower production capacity, and wonder if enough work can be made available for everyone.
The prospects of not being able to find an internal position to match their skill sets once their original jobs go, is also nail-biting.
Compounding all these worries is the fact that those who choose to part ways with Intel will likely end up with no severance package.
I hope Intel will pay properly compensate any workers who do not want – or are unable due to family and housing commitments – to be deployed further away to Kulim.
The Penang state government must take a strong stand with firms retrenching workers. I am not saying this is the case with Intel, but often firms use the offer of “re-depl0yment” to a location farther – knowing that many workers will be unable or unwilling to take up their “generous offer” – away as a ploy to avoid paying proper retrenchment compensation to workers.
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The expenses involved om tje ,pve cpmtrinuted to the bankruptcy !
Whoa typos aplenty!
It should read
The expenses involved on the move contributed to the bankruptcy
Andrew, my boy, you have got to really get your head out from the hole in the ground. KTK has messed the state govt administration right royally and is now trying to portray himself as innocent as a suckling baby.It’s hyighly irresponsible of federal leaders to mislead the general populace into believing that we will be the only country to escape the economic devastation that has claimed almost every major economy in the West and which is now chewing at the manufacturing-led economies of the east, Singapore, Taiwan, Japan and South Korea included.
Qimonda made plans to move to Senai from Melaka just before the market crash. The expenses involved om tje ,pve cpmtrinuted to the bankruptcy !
Andrew Haha…how naive can you be. It has nothing to do with LGE’s government. You know something – your comments are totally shallow and I think you should continue asking Anil why is he not writing one such architect whom we know has his fingers in all the projects in the heritage area? How naive can you be. Sour as you can be – the government that we have today didn’t mess up the state for the last 20 years. Since KTK came into power, what nonsense has he done other than bowingto UMNO? Grow up Andrew. You sound like… Read more »
Our tpm said very loudly and in a crystal clear voice that our economy is fundamentally strong,there will be no economic crisis.Could tpm please story us and story us the truth what is going on here.
In the meantime, CM Lim Guan Eng (who lives on the moon) still believes Intel is not going to shut down….
He also believes that Penang needs more high-rise hotels built in Georgetown’s UNESCO Heritage District….
And he also believes that hillslope development on Penang Island is good for business….
And he also believes that developers will sue the state government if we don’t suck up to their business agenda….
And (perhaps) he also believes that if he plays ball with big business, they will donate money to his DAP party to fund the party’s machinery during the next election….
The whole world is in financial trauma. UK has officially declared it is in recession. Singapore has more or less delcared. But they were responsible governments as they warned their people long before recession really set in. Infact, nearly 12 months ago, the UK government informed their people to be more prudent as rough waters were ahead. But here in Malaysia, it is still a different story. We are told that everything is fine. Semua OK. Economy is very good. No way we can fall into recession. If US, UK and Singapore, the biggest economies of the word can already… Read more »