SEVERAL multinational companies in Penang that were reported to be laying off workers or fully or partially shutting down are seeking legal advice on their options against those spreading fake news.

State investment agency investPenang director Lee Kah Choon said the allegations widely circulated on social media were not true.

“Invest Penang has spoken to the factories listed and many denied the accuracy of the news. 

“Many of these companies are listed locally and abroad and this fake news may have an impact on their share prices and the morale of their employees. 

“These affected companies are seeking legal advice before deciding on their next course of action,” he said in a statement today.

Lee said the manufacturing, investment and employment situation in Penang remained stable, with 98% of the state’s working population gainfully employed.

Earlier this afternoon, Gerakan deputy president Oh Tong Keong said in a statement that he had learnt of the “partial closures, shutdowns, layoffs and forced leave on workers” at several companies.

He named some of the international companies that were allegedly involved, sharing a picture of a slide presentation that detailed the companies’ cost reduction measures such as forcing the workers to take leave, sending foreign workers home, shutting down, freezing hiring and others.

In an edited statement sent later this afternoon, Oh removed the names of the company and the attached picture of the slide.

Lee, who is also special adviser to Chief Minister Chow Kon Yeow, advised the public not to share and circulate the “fake news”.

“It is an offence under Anti-Fake News Act 2018, which carries a fine of up to RM500,000 or jail term up to six years or both.”

Lee said it was not irregular for companies to undergo human resource restructuring to meet changing market conditions and demand. 

At a event today, Chow said the information in Oh’s slide presentation was not verified.

Chow said one company was indeed retrenching about 100 workers, but did not name the company, saying investPenang would make the necessary checks before making any announcement regarding the manufacturing sector.

“The unconfirmed information in this slide will tarnish the companies’ image if it is not true. A shutdown is a serious allegation.

“We prefer factories to make such announcements themselves. They are very reluctant to make such announcements.

“There are now companies thinking of legal action,” he told reporters.

Last week, investPenang chief executive officer Loo Lee Lian said the US-China trade war might affect companies in Penang.

She said the agency was watching out for possible restructuring and reduction of working hours in companies operating in the state.

“Overall, the trade war has caused the market to soften a bit. For example, Chinese automobile companies are seeing 50% drop in sales.

“Many in the industry will be affected. Many companies are feeling the effects.

“We are watching out for companies that may be cutting working hours or restructuring. We expect this to happen. We are monitoring,” she said. – April 10, 2019.