Samsung Seremban closing down and laying off 620 workers


According to this report by the Star, “Samsung Electronics Display (M) Sdn Bhd (SDMA) is ceasing the operations of its TV manufacturing plant in Seremban due to challenging business environment and changing market conditions.

Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Azman Mahmud said on Monday that apart from the challenging business environment and changing market conditions, the move was also under the group’s restructuring of the whole operations in Malaysia

He said that while it was unfortunate SDMA had to cease operations, “we are glad to note that Samsung is committed to provide fair and reasonable supporting programmes for its affected employees.”


epa05175639 Two people next to the Samsung pavillion during the Mobile World Congress in Barcelona, Spain, 22 February 2016. The Mobile World Congress will run from 22 to 25 February 2016. EPA/ALBERTO ESTEVEZ


How will those working in or for the Seremban Plant be affected?
“Our key priority following the announcement is to ensure minimal disruption to the affected employees and those within its supply chain. We will also work with [them] to make this transition as easy as possible. MIDA remains open and committed to support and facilitate any future investments Samsung may plan in Malaysia,” Azman said.

MIDA said Samsung as a group in Malaysia will continue to maintain its more than 5,000 workforce in the country. The affected workers could potentially be absorbed into other Samsung companies in Malaysia.”

Needless to say, that is a relief. It is good to know that Samsung values their employees in times of our economic difficulties. On the other hand, Malaysia’s future in the electronics industry looks to be headed in the right direction .article-2161004-04FE5B090000044D-18_634x388

“MIDA pointed out Samsung continues to make Malaysia an important base within the Asean market through its other entities such as Samsung Electronics Malaysia Sdn Bhd (SEMA), Samsung Malaysia Electronics Sdn Bhd (SME) and Samsung SDI Energy Sdn Bhd (SDIE).

SEMA is the only manufacturing plant producing microwave ovens in the world while SDIE produces one-third of Samsung’s global cell battery production. Samsung Engineering (Malaysia) Sdn Bhd. is heavily involved with several hydrocarbon and industrial projects in Malaysia.

From January to September 2015, Malaysia attracted 521 additional manufacturing projects.

Negeri Sembilan attracted 29 new manufacturing projects. These approved manufacturing projects will create jobs for 1,930 locals in the state.

MIDA added the electrical and electronics industry continues to be a key driver of the Malaysian economy, with significant contribution to the country’s manufacturing output, employment, investments and exports.”

What do you guys think? Does or should this news worry you? Or does the news that Malaysian is still to be an important ASEAN Base give us reason to be optimistic? Let us know your opinions by leaving your comments below.

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