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Yesterday’s revelation that Goodyear was to close its factory in Shah Alam took everyone by surprise, the plant having been a mainstay of the automotive manufacturing scene for the past 52 years. The move sparked furore over large multinational corporations continuing to move manufacturing away from Malaysia, most notably earning a rebuke from Tan Sri Rafidah Aziz.
The former minister of international trade and industry (MITI) took to Facebook to voice her dismay, saying that it was a shock to read the news. She also urged the government to immediately respond to such developments. “While touting around the billions of possible investment and expectations being mooted and discussed, it is so important that industrial and business entities which are already here do not close shop and leave for other countries.”
Rafidah added that the government needs to note the amount of companies that have shut down their Malaysian operations and understand why they did so. “[Ask] where have they moved to [and] why have they stopped operations in Malaysia; analyse what were their push factors which drove them to shut down and, to add insult to injury, relocate elsewhere.”
It’s important to make a “serious and detail[ed]” analysis on the push factors, as they are important to understand what existing investors find “untenable” about continuing to operate here, Rafidah said. She added that it would be pointless to ask the what-ifs once they are gone.
Rafidah said the government must also do the background work in analysing future memorandums of understanding (MoU) with future investors, making sure that they are serious with their plans and land acquisitions before signing them. This is important to make Malaysia the location of choice for both domestic and foreign investors, she added.
The decision to close the Shah Alam plant was announced by Goodyear Asia Pacific president Nathaniel Madarang in a leaked internal memo. In it, he said that the “difficult but necessary decision” was made as part of the American tyre manufacturer’s Goodyear Forward plan to reduce costs by US$1 billion (RM4.7 billion). The closure, effective June 30, will result in approximately 550 job cuts in the country.
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