There are opportunities in the downsizing of manufacturing companies in the state, as it would allow for new talents to be recruited by local and foreign companies, said the state's investment arm, Penang Invest.

Special Investment Advisor to the Chief Minister Lee Kah Choon said the move by certain factories to suspend operations and downsize their companies was due to the overall restructuring exercise industries have to undergo.

The situation is due to slower global economic growth and slower demand and business uncertainty due to the US-China trade war, Lee (photo, above) said.

"Malaysia will benefit from the relocation of investment out of China, but will be negatively impacted if the world economy slows down and demand drops.

"The opportunity for Penang is a reallocation of our talent from sectors that are being impacted to sectors that are growing.

"There are many local, as well as foreign companies, which have taken this opportunity to recruit new talents. They are working closely with Invest Penang in this recruitment initiative," Lee added.

He invited all talents to send their resume to Invest Penang’s CAT Website.

"We will match them with suitable companies," he said.

Meanwhile, the Penang division of the Malaysian Trades Union Congress (MTUC) wants the state government to call for a meeting with electronics manufacturers in the state to know how serious is the situation of downsizing in the sector.

MTUC secretary K Veeriah (photo) said such a meeting would give the state an insight as to the plans of the manufacturers for actions in the face of challenges facing the sector.

"We would also take the liberty to propose that the said meeting be inclusive of all stakeholders, including the trade unions," Veeriah said in a statement.

He was referring to notices from a couple of multinational companies (MNCs) involved in the electronics manufacturing sector announcing manpower downsizing, lower wage increases, lower bonuses and periodic plant shutdowns.

"Besides the said written announcements that we have seen, we have also received reports that other companies are also planning to implement such measures," Veeriah said.

"The notices that we have read attribute a weak global demand, weaker growth and an uncertain global outlook as the underlying causes for the course of actions that are undertaken by the said employers," he added.

"The notices that we have seen, and the information that we are receiving, seem to indicate that the electronics sector employers are initiating downsizing and shutdowns from end March 2019 onwards.

"It is our belief that we have only received a tiny bit of information and are of the view that the uncertainty of the global market would, in all probability, impact upon most of the major players in the sector," Veeriah said.

On the issue of plant shutdowns, Veeriah said full wages should be paid during such periods.

"Any loss of wages would, inevitably, put tremendous pressure on the economic needs of the workers, especially so with the prevailing escalating cost of living."