Panasonic Manufacturing Malaysia confirms business restructuring, closes two product manufacturing departments in Selangor

Among the nominal number of employees within the affected departments provided with the option of a Mutual Separation Scheme (MSS), a significant proportion of them have opted for it.

Panasonic Manufacturing Malaysia (abbreviated as PMMA) has confirmed that it has completed a rationalisation exercise and business restructuring as of 31 March 2023.

This was announced in tandem with a Malaysiakini article which declared that "Panasonic to close some operations here, hundreds to be jobless". In response, Panasonic clarified that the restructuring is in-line with the closure of two product manufacturing departments at the Shah Alam 1 (SA1) plant only. "No other plants or departments other than the one stated are affected," PMMA stated.

As a result of the restructuring, 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 it.

In its statement, Panasonic affirmed: "As an organisation dedicated to maintaining a culture of respect and responsibility, we have been engaging closely with our employees on this matter while providing assistance and support throughout the process."

During this rationalisation exercise, employees who opted for the MSS have "received fair and equitable compensation packages which are above industry norms", said PMMA's statement. For the remaining employees who did not opt for the MSS, the organisations's HR 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.

"As we operate in an increasingly complex environment, Panasonic Manufacturing Malaysia Berhad 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."

Singapore-headquarted CFM Holdings, for whom PMMA is considered an anchor customer, also responded to the news above, stating that it has not received any notification from Panasonic on "shutting down most of its operations" in Malaysia, but will be in communication to assess the impact on CFM group’s financial performance and position for the financial year ending 30 June 2023. 

Further announcement(s) on any material developments in relation to the aforesaid matters will be made by CFM Holdings as and when appropriate, it said in the statement, which was signed off by Janet Lim Fong Li, Executive Director & Chief Executive Officer, CFM Holdings.

As stated in the group's statement: "Shareholders of the company are advised to refrain from taking any action in respect of their securities in the company which may be prejudicial to their interests, and to exercise caution when dealing in the securities of the company."

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Lead image / Panasonic Manufacturing Malaysia