THE Penang government expects to create some 15,000 jobs through foreign direct investments (FDIs) and domestic direct investments (DDIs) it received last year, said Chief Minister Chow Kon Yeow.

He said almost 3,000 people are set to lose their jobs after two textile companies in Penang shuttered amid the Covid-19 pandemic, and that these investments would replace the lost jobs. 

“In Penang, it has been reported that two factories (garment manufacturers) have announced they will close.

“So, as a result of FDIs and DDIs that came into Penang (in 2019), we can estimate that up to 15,000 job opportunities will be made available when the investments are implemented and these jobs are very important because it will replace the jobs that were lost,” he said in an Facebook live video conference with PKR president Anwar Ibrahim, Selangor Menteri Besar Amirudin Shari and Negri Sembilan Menteri Besar Aminuddin Harun.

Penang received RM13.3 billion in total approved manufacturing investments between January and September 2019. 

The investment comprised RM12 billion in FDIs and RM1.3 billion in DDIs.

Giant textile and garment manufacturer Esquel Malaysia, which has been operating in Malaysian for more than 50 years, said it will shut its operation in Penang and in Kelantan on June 12, affecting more than 2,000 employees. 

TAL Group of Companies, headquartered in Hong Kong, also announced it would cease operations of its factories Pen Apparel in Penang and Imperial Garments in Ipoh. They are reported to have 2,600 employees, of which 30% are local. 

Chow said that he was unsure if other companies would follow suit to retrench workers, downsize or shut its operations due to the global economic crisis but said foreign investors should be allowed to start construction works as soon as the movement control order is lifted. 

“We do not know how many factories will decide whether to downscale or stop their operations but we need to make preparations… by giving them permission to start earthwork and construction work.

“It may take a while, maybe one year to 18 months, before the factories are ready to start their operations.” – April 21, 2020.