NINE multinational companies (MNCs) have shut down operations in Malaysia since the start of the pandemic in March last year to May this year, said International Trade and Industry Minister Mohamed Azmin Ali.

He said these companies were involved in the construction, chemical, electric and electronics, steel and machinery and textile sectors.

“Among the main reasons for the shutdowns are the global economic contraction brought on by the Covid-19 pandemic, a weak market and drop in sales due to lower demands from foreign countries,” said the senior minister in response to a question by Steven Sim (Bukit Mertajam-PH), who asked how many MNCs have shuttered in Malaysia since January last year and why.

“Increased operation costs, competition from local and international manufacturers, a lack of demand, and restructuring also led to the closure of these companies.”

The companies that have shut down operations here are Esquel Malaysia Sdn Bhd in Penang and Kelantan, Pen Apparel Sdn Bhd, Bekaert Ipoh Sdn Bhd, Howco Metals Management Malaysia Sdn Bhd, Transnorm System Sdn Bhd, Terreal (Malaysia) Sdn Bhd, Sika Kimia Sdn Bhd and Sony EMCS (Malaysia) Sdn Bhd.

Despite the closures, Azmin said Malaysia remains a strong destination for foreign investors in Southeast Asia.

“A total of RM107 billion in investments from the manufacturing and services sectors were approved from January to June this year, up from RM69.3 billion in the same period last year.

“Of the total, RM62.5 billion are foreign direct investments (FDI), which is a 214.9% increase from the same period last year.”

Singapore contributed the highest amount of FDI with RM43.5 billion, followed by South Korea (RM6.3 billion), the Netherlands (RM5.1 billion), British Virgin Islands (RM3 billion) and Japan (RM600 million). – October 1, 2021.