PETALING JAYA: A total of four multinational companies, with an overall investment of RM7bil, have shut down operations here from January to June this year, the Dewan Rakyat was told Tuesday (July 2).

The Investment, Trade and Industry Ministry said among the four were Goodyear Tire & Rubber Co and two manufacturing companies with majority foreign shareholding in the transportation, and the iron and steel industry, which are gradually closing operations till December this year.

Another unnamed company in the food industry with a majority local shareholding will close one of its operations in stages in Port Klang, Selangor, the ministry said.

“But, their factory operations in Johor will resume. The overall investment for these four companies is RM7bil,” the ministry said in a written Parliament reply dated July 1 (Monday).

According to the ministry, the closure of businesses or manufacturing operations was usually due to decisions by investors to restructure, rationalise production activities and business directions of a company according to global trends.

For Goodyear Tire & Rubber Co, the ministry said that the company’s decision to shut down its Shah Alam manufacturing operations was due to restructuring following financial losses since 2017.

“Goodyear, which is based in Akron, Ohio, in the United States, aims to reduce costs at a significant rate by 2025, of which the closure of the Shah Alam factory is part of the company’s global operating cost reduction measures.

“Other Goodyear factories closed are in Germany and in Australia,” said the ministry.

At the same time, RM194.9bil of approved investments were recorded for the manufacturing sector under the purview of the ministry and the Malaysian Investment Development Authority (Mida).

The figure, said the ministry, involves 1,135 projects that are expected to create 91,930 new jobs.

“Of that amount, foreign investments contributed as much as RM166.6bil or 85.5%, while local investments contributed RM28.3bil or 14.5%,” it said.

Of the RM194.9bil of approved investments, the ministry said 445 projects or 39.2% with a total foreign investment of RM37.6bil were realised, creating 29,693 jobs.

“This is an encouraging achievement considering the implementation of approved manufacturing projects, typically takes between 18 to 24 months to be realised, depending on the current economic situation, the complexity and scale of the project.

“Projects that have been implemented or realised, refer to projects that have started operations, are currently under construction (buildings or factories) or are currently in the process of installing machines and equipment,” the ministry said.

It added that efforts to strengthen the investment ecosystem and the supply chain are ongoing, adding that this includes improving policies and strategies.

“Engagement and consultation sessions will be held from time to time to strengthen the services delivery systems to ensure investments can carry out their businesses in a conducive environment,” added the ministry.

https://www.thestar.com.my/news/nation/2024/07/02/four-multinationals-shut-down-from-january-to-june-2024-dewan-rakyat-told