Four multinational firms with investments totalling RM7b ceased operations in 1H2024 — Zafrul

KUALA LUMPUR (July 1): Four multinational firms with total investments of RM7 billion have ceased operations in Malaysia during the first half of 2024, according to Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

Among them is Goodyear Malaysia Bhd, a tire maker in the rubber-based product industry, while the other three are from the transport, iron and steel, and food industries.

Zafrul said both the transport and iron and steel companies, which are majority foreign-owned, will gradually cease operations by December.

"The food industry company, majority locally-owned, will cease operations at its Port Klang facility in stages by December 2024 while its operations in Johor will continue," Zafrul said in a written parliamentary reply to Datuk Seri Ismail Sabri Yaakob (Barisan Nasional-Bera).

Zafrul said there are several factors contributing to the cessation of operations by these firms, including company restructuring, business model adjustments and alignment with global production trends.

For instance, Goodyear Malaysia Bhd closed its Shah Alam factory as part of a restructuring plan following sustained losses since 2017, Zafrul noted, adding that similar cost-cutting measures have also affected the company's operations in Germany and Australia.

Nevertheless, Zafrul emphasised the ministry's proactive stance in attracting new investments and supporting domestic ventures through enhanced policies, strategies and stakeholder engagement aimed at fostering a favourable business environment, while strengthening the investment ecosystem and supply chain.

From January 2023 to March 2024, Zafrul said that the ministry and the Malaysian Investment Development Authority have approved investments totalling RM194.9 billion across 1,135 projects in the manufacturing sector, expected to create 91,930 new jobs. Foreign investments accounted for RM166.6 billion or 85.5%, while local investments totalled RM28.3 billion or 14.5%.

Of these approved projects, Zafrul noted that 445 projects or 39.2% with RM37.6 billion in foreign investments have been realised, encompassing those in operation, under construction, or in the process of installing machinery and equipment, creating 29,693 jobs.

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