Panasonic Manufacturing MY shuts most operations in the country

Panasonic Manufacturing Malaysia will be shuttering most of its operations in the country, as confirmed by CFM Holdings, its cleanroom equipment supplier in a statement. 

As seen in a filing by CFM Holdings Group, of which Panasonic Manufacturing is a key customer, the group stated that it had not received any notification from the latter on the cessation of its operations in Malaysia.

Additionally, the group clarified that it will be in communication with Panasonic Manufacturing to assess the impact of the closure of its plants on the group’s financial performance and position for the financial year.

"The group will make further announcements on any material developments in relation to the aforesaid matters as and when appropriate," it stated.

The news of Panasonic shutting two of its manufacturing departments in Shah Alam was initially reported by Malaysiakini, after which Panasonic put out an announcement providing an explanation for its sudden closure.

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“As we operate in an increasingly complex environment, Panasonic Manufacturing Malaysia constantly looks at how we can best adapt and navigate to maximise business efficiencies and grow the company sustainably. The strategies undertaken are thoroughly thought out and any decisions regarding our workforce are made with the utmost consideration and deliberation,” the announcement said.

The announcement also stated that a rationalisation and business restructuring exercise led to the closing of the manufacturing departments in the Shah Alam plant, clarifying that no other plants or departments were affected. However, another report by Malaysiakini showed that Panasonic confirmed that the closure of its Johor plant left 880 staff members affected.

A nominal number of employees within the affected departments were provided with the option of a Mutual Separation Scheme (MSS), and a significant proportion of them voluntarily opted for this opportunity, said Panasonic.

“During this rationalisation exercise, those employees who opted for the MSS have received fair and equitable compensation packages which are above industry norms. For the remaining number of employees who did not opt for the MSS, our Human Resource department has provided them with an offer to be transferred to other relevant departments within Panasonic Manufacturing Malaysia, in positions that suit their skill sets and potential for growth,” the announcement from Panasonic explained.

While sustainable growth is one of Panasonic's missions, the company also emphasises the importance of sustainability and its impact on the planet. Earlier this month, Panasonic announced a host of Corporate Social Responsibility (CSR) initiatives to tackle environmental issues. One of which was its ECO RELAY which includes employee-led, community-based activities such as community ocean and river clean-ups, conservation of satoyama, and nature education programs.

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