MALAYSIA: Nikko closes factory

Rising production costs and falling exports have forced Nikko to close its factory in Malaysia.
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The R/C specialist closed its Prai factory laying off in the region of 950 people.

Chairman of the local chamber of commerce, InvestPenang, Datuk Lee Kah Choon said the company, which is listed on Bursa Malaysia, closed due to dwindling exports and market demand and escalating production costs.

"As far as the state government and InvestPenang are concerned, we are looking into measures to ensure the welfare of the retrenched workers,” he said.

"We are working closely with the Labour Department to compile reports on the situation of individual workers. When that is done, their claims can be filed in the Magistrate’s Court."

Lee said the state was trying to contact the factory’s managing director to seek an amicable solution for the workers and the factory management. Most of the workers were from the assembly line.

"We can help the company if it is interested in selling its Prai property. Investors on our reserve list may be interested to take over the premises,” he said.

Lee said he did not think Nikko Electronics was planning to relocate its company, as it closed down the factory without giving its employees a month’s notice as required by the Employment Act.

"We are not assigning blame to any party. Our main task now is to ensure the workers get their entitlements and to help them get employment," Lee said.

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