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Panasonic AVC Networks Kuala Lumpur Malaysia Sdn Bhd (PAVCKM) will cease operations by 2027, affecting about 400 employees
In a statement on 27 July, the company said it will transfer the production of two products to other locations over the next two years.
The production of Blu-ray Disc Players will be moved to China Hualu Panasonic AVC Networks Co Ltd (CHPAVC) by the end of September 2026, while the production of Technics-branded Hi-Fi audio products will be moved to another Panasonic Group facility.
"Approximately 400 employees are expected to be affected by the end of March 2027.
"PAVCKM is working closely with the relevant authorities, government agencies, and Electrical industry Workers' Union (EIWU) to ensure that all affected employees receive adequate support, including assistance with job placement and career transition," it said.
PAVCKM said Malaysia remains one of Panasonic's key regional hubs, employing more than 12,000 people across a diverse range of business functions, including high-value-added manufacturing, research and development, and corporate activities.
Panasonic will continue producing audio products in Malaysia while improving efficiency across its manufacturing operations. Its TV and audio sales and service operations in the country will also continue as usual.
In a statement on Monday, 10 August, the Human Resources Ministry said it is taking early intervention measures to assist employees affected by the retrenchment
According to Bernama, Human Resources Minister Datuk Seri R Ramanan said a total of 541 employees, comprising 415 local workers and 126 foreign workers, will be affected by the retrenchment, which will be carried out in two stages.
The measures will include income protection schemes, job matching facilities, and reskilling and upskilling programmes.
Ramanan said a 'from job loss to new job' approach will be implemented in collaboration with the Department of Labour Peninsular Malaysia (JTKSM) and the Social Security Organisation (PERKESO) to safeguard the welfare and career continuity of affected employees.
He added that PAVCKM is committed to paying all outstanding entitlements to the affected employees, including wages, payment in lieu of notice and annual leave, as well as termination benefits. The total amount is estimated at RM64.38 million.
Meanwhile, the Selangor state government said it will also meet the affected workers this week to offer assistance.
State Human Resources, Poverty Alleviation, Indigenous & Minority Affairs Committee chairperson V Papparaidu said he will work with PERKESO to provide a form of insurance that will cover 80% of the workers' salaries in the first month, 50% in the second month, and 30% thereafter, reported Bernama.
