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Miti, Mida extend support to 550 employees affected by Goodyear factory closure | Scoop
Miti and Mida’s coordinated effort to assist Goodyear's 550 employees reflects their commitment to supporting workforce transition and resilience, drawing on successful past collaborations with companies undergoing similar business changes. – Goodyear pic, March 8, 2024
News

Miti, Mida extend support to 550 employees affected by Goodyear factory closure

Specialised team to facilitate job placements, provide upskilling, reskilling programmes

Bernama
Updated
12:33 PM MYT

 

KUALA LUMPUR – The government, through initiatives led by the Investment, Trade and Industry Ministry (Miti) and the Malaysian Investment Development Authority (Mida), has mobilised a specialised team to help 550 employees affected by Goodyear’s Shah Alam factory shutdown.

“Miti and Mida have mobilised a specialised team to facilitate job placements, as well as offering upskilling and reskilling programmes for the affected employees.

“Leveraging its experience, Mida has actively engaged with the Social Security Organisation and the Labour Department 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 Goodyear’s Shah Alam plant closure, demonstrating a committed approach to workforce transition and resilience,” Mida said in a statement today. 

Additionally, Miti and Mida said the intervention is a testament to the unwavering commitment to supporting the 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,” it said.

Goodyear has decided to close its manufacturing facility in Shah Alam and about 550 employees will be directly affected by the shutdown. 

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, according to Mida.

“This development is part of Goodyear’s global move aimed at achieving US$1 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,” it said.

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.

“Malaysia achieved a historic investment performance in 2023 with a remarkable RM329.5 billion of approved investments across various economic sectors,” Mida noted.

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,” it said. – March 8, 2024

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