KUALA LUMPUR, March 8 (Bernama) -- The Ministry of Investment, Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA) are taking proactive and positive steps in response to Goodyear's decision to close its manufacturing facility in Shah Alam. It's essential to highlight the ongoing strategic dialogue between MITI, MIDA, and Goodyear that precedes this announcement. This dialogue, a testament to our collective preparedness, has ensured that the closure aligns with broader strategic objectives and exemplifies the adaptability and strength of our partnership.

Importantly, 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. 

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. This development is part of Goodyear's global move aimed to achieve USD1.0 billion in annualised cost savings by 2025. The company has been operating at a loss since 2017, prompting a strategic shift towards optimising its operations. 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 PERKESO and Jabatan Tenaga Kerja through the newly formed Invest Malaysia Facilitation Centre to facilitate job placement assistance for employees from various sectors. 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.  

This intervention is a testament to our unwavering commitment to supporting our local workforce through transformative industrial changes, drawing on previous successful collaborations with companies undertaking similar rationalisation as part of their business plans for closure or downsizing, ensuring workers are well-positioned for new and fresh job opportunities. This situation underlines the importance of MITI and MIDA’s commitment to supporting affected workers and fostering resilience. This also reflects our adaptability and determination to secure the well-being of the workforce and the economic vitality of the nation. 

Building on this resilient foundation, Malaysia achieved a historic investment performance in 2023. With a remarkable RM329.5 billion of approved investments across various economic sectors, this is a testament to the strength of the country’s policies designed to foster growth and investment opportunities. Notably, within the manufacturing sector alone, which accounted for RM152 billion of the total approved investments, a significant portion—62.9%, or RM95.5 billion—originated from existing businesses expanding and diversifying their operations. This indicates a strong vote of confidence from established companies in Malaysia's economic stability and growth prospects. 

MIDA’s analysis of annual project implementation reveals a consistent and noteworthy trend: over 85% of approved manufacturing projects in 2021 and 2022 have been implemented. For approved projects in 2023, already 50.1% of these have reached the implementation stage. It is to be noted that this is highly encouraging, considering that manufacturing projects will generally take 18 to 24 months to complete, depending on the level of complexity of each project.

Such achievements reflect Malaysia's substantial potential for delivering attractive returns amidst its journey towards becoming a developed and inclusive economy. Moreover, the nation's notable improvement from 32nd to 27th in the 2023 IMD World Competitiveness Ranking serves as a clear testament to the confidence placed in Malaysia by the global investment community.

The Government, through MITI and MIDA, remains steadfast in our dedication to advancing our goals under the MADANI Economy Framework, driving quality job creation and economic benefits to our rakyat. Our emphasis on innovation and sustainability positions Malaysia as a global model of progress and environmental stewardship, ensuring a prosperous and responsible future for all. 

About MIDA 

MIDA is the Government's principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on X, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.   

SOURCE: Malaysian Investment Development Authority 

FOR MORE INFORMATION, PLEASE CONTACT:
Name: Ms. Fatmah Ahmad 
Director of Corporate Communications Division
Tel: +603-2267 2428
Email: fatmah@mida.gov.my

--BERNAMA