Business as usual for Penang tech firms

 

AMID a growing number of firms making job cuts globally, Penang seems to be spared major redundancies for now.

Foreign news reports recently highlighted that technology companies, many of which have operations in Penang, were laying off staff, instituting production shutdowns and forcing their employees to go on leave.

However, a check by Business Times in Penang revealed that it was business as usual for most firms.

Invest-in-Penang Bhd executive committee chairman Datuk Lee Kah Choon said the impact of a weaker global technology sector had not been detected yet among local firms, most of which are suppliers to multinational corporations in the state.

Motorola Penang managing director T.T. Yew said its operations in the state are not affected.

"Penang remains a major site for our research and development and manufacturing of digital two-way radios and advanced wireless communications businesses in Asia," he said.

Although Motorola has announced plans to lay off 3,000 workers worldwide by April 2009, it is still advertising vacancies over the radio and print media.

The world's second biggest computer maker, Dell Inc, which earlier this month asked its employees to consider taking up to five days of unpaid leave, said its Malaysian employees were not affected.

"The recent cost-saving measures do not apply to employees in Penang and Cyberjaya operations," a company spokesman said when contacted.

Dell has about 3,000 employees in Malaysia.

AMD Malaysia managing director Datuk Mohd Sofi Osman said although the company is set to part ways, via a voluntary separation scheme with 500 employees worldwide, only 19 are from Penang.

Federation of Malaysian Manufacturers (nothern branch) chairman Datuk O.K. Lee said it is undertaking a nationwide survey among its 2,300 members on the impact of the economic downturn on their business and hirings.

At the Kulim Hi-Tech Park in Kedah, where an estimated 16,000 people work, a headcount reduction of between three and four per cent is expected by the year-end.