KUALA LUMPUR: Four multinational companies have shut their operations in Malaysia within the first half of this year, said Investment, Trade and Industries Minister Tengku Datuk Seri Zafrul Abdul Aziz.

One of the companies, he said, was rubber-based products company Goodyear Malaysia Bhd, with a majority of foreign shareholding.

Two other companies were in the transportation, iron and steel industries. These would phase out operations gradually by December this year.

"One company in the food industry with a majority of local shareholding, will phase out one of its operations gradually by December 2024 in Port Klang, Selangor, but continue its factory operations in Johor.

"The total investment for all four companies amount to RM7 billion."

He said this in a Parliamentary written reply to Bera member of Parliament Datuk Seri Ismail Sabri Yaakob, who asked the minister to state the number of multinationals that had ceased operations in the country and their reasons.

Zafrul explained that the move to close their operations was a business decision linked closely to company restructuring, transition of business models, as well as rationalisation of production activities and business direction in line with global trends.

"Goodyear Malaysia Bhd's decision to close its Shah Alam factory was driven by a new business plan (restructuring) in response to the company's losses since 2017.

"Other Goodyear factories closed include those in Germany and Australia."

He said the government, through his ministry and Malaysian Investment Development Authority would continue to be proactive and responsive in attracting new investments into the country while encouraging the growth of domestic investments, as both categories complemented each other.

"Efforts to strengthen the investment ecosystem and supply chain will continue, including enhancing existing policies and strategies.

"Engagement sessions and consultations with stakeholders and various relevant parties will be conducted periodically to strengthen service delivery systems, ensuring investors can operate in a conducive environment," added Zafrul.

https://www.nst.com.my/news/nation/2024/07/1071284/four-mncs-shutter-operations-malaysia-first-half-year-wacth