THE Investment, Trade and Industry Ministry (MITI) and the Malaysian Investment Development Authority (MIDA) said they are taking proactive and positive steps in response to Goodyear’s decision to close its manufacturing facility in Shah Alam.
In a statement on Friday (March 8), MIDA said Goodyear, alongside its shareholders, has been in close coordination with the government well before this decision was publicised, working diligently to establish a support framework for the employees.
“This pre-emptive collaboration demonstrates our collective commitment to the well-being of the workforce, underlining that our efforts to assist the affected employees is undertaken with foresight and responsibility,” it said.
“Approximately 550 employees will be directly affected by the shutdown. Goodyear emphasises its dedication to handling this transition with the utmost respect and transparency for all its employees and associates.”
According to MIDA, this development is part of Goodyear’s global move aimed at achieving US$1.0 bil in annualised cost savings by 2025.
“The company has been operating at a loss since 2017, prompting a strategic shift towards optimising its operations,” MIDA elaborated.
“As part of its restructuring, Goodyear has indicated plans to transition from manufacturing to a distributor business model, focusing on premium profitable segments, building capability in sales and marketing, strengthening the distribution network, and improving the cost structure.”
To mitigate the impact on the affected workforce of Goodyear, the government, through initiatives led by MITI and MIDA, has mobilised specialised team to facilitate job placements, as well as offering upskilling and reskilling programmes.
In helping affected parties for job placement, previous efforts have been shown effective, turning challenges into opportunities.
“Leveraging its experience, MIDA has actively engaged with Social Security Organisation (PERKESO) and the Labour Department through the newly formed Invest Malaysia Facilitation Centre to facilitate job placement assistance for employees from various sectors,” MIDA said.
“This collaborative effort underscores the potential for similarly effective support mechanisms to be extended to those affected by the Goodyear’s Shah Alam plant closure, demonstrating a committed approach to workforce transition and resilience.” – March 8, 2024
Main pic credit: The Star
