YOURSAY | 'Malaysia no longer darling of foreign investors.'
Panasonic to close some operations here, hundreds to be jobless
OCT: It's sad and heartbreaking to see multinational corporations (MNCs) downsizing and leaving Malaysia. Malaysia has been a wonderful country for investment in the good old days.
Malaysia had a talented pool of good people, less restrictive religious laws, almost non-racial inclusiveness, and most importantly, no kleptocrat.
Malaysia has changed from a roaring tiger to a wounded and abandoned cat. Religious sentiments can become law overnight and are subject to many interpretations by different religious leaders.
Talented Malaysians had migrated leaving behind a great pool of religious Malaysians who are more interested in the next life than the current economy and huge deficit. Money lost to corruption is not recovered. The irony is that you can keep the stolen money even when you are convicted of corruption.
Malaysia is very generous to crime. Neighbouring countries are opening to attract investors whereas Malaysia is building up restrictions and barriers in race and religion to stiffen and scare investors.
No way investors can continue or come to invest in Malaysia based on these harsh rules and regulations.
RR: It is very sad that Panasonic and other MNCs are closing down in our country. Manufacturing has become a highly competitive business with many players in the world market.
To sustain survival, efficiency and productivity are essential, and most importantly employees are loyal to their company like the Japanese and Korean workers. This loyalty can be eroded if corruption is seen at the top management/board level and consequently, the welfare of workers is neglected.
There must be a fair policy on promotion which must be on merit; not based on race and religion. But if the top politicians are corrupted, it is hard to retain MNCs and attract new investments from other countries.
As a past CEO, I lost my job years ago for insinuating that there was corruption and abuse of power at the top level.
Harimau_arif: What most people failed to understand is how each country is competing as a whole to attract new or retain existing investments. There are many key decision factors involved such as political stability, availability of skilled labour and cost, and integrity/corruption to name a few.
Looking at Panasonic’s global demand decline of 0.5 percent and tying it to the recent lawsuit, and the decision to ramp down its Malaysia operations, I would say that Panasonic’s leadership is probably done dealing with Malaysia's widespread corrupt practices.
Keep in mind that the Japanese, in general, are intolerant of bribery and corruption.
Apanama is Back: This pull-out by Panasonic is the tip of the iceberg. While the official statement for cessation of the operation will always be "business decision”, the underlying factors are too many.
Remember, this decision is not only about corruption issues as stated in the news. It is also not about the brand. For everyone’s information, Panasonic is doing well in India, for example.
So, the question is why now since 1965? This is not an overnight decision.
The country is no more a favourite as far as foreign investment is concerned. Once upon a time, we are the darling of foreign investment. What is the Investment, Trade and Industry Ministry doing about investment?
We should not only pull the investment but also need work harder to retain them as well. Yes, our officers in government are appointed based on merit and competency. This is why Panasonic is pulling out!
Focusapp: The closing down of factories, not just Panasonic, over the decade is merely a harbinger of things to come. Sadly, the bloated government is too slow and unresponsive to the global business environment.
Outdated policies which are skewed to racial and religious profiles will bring more hardship to the country.
Rampant corruption, cronyism, and “tidak apa” (lackadaisical) attitude continue to drag Malaysia's declining economy to a low-middle-income nation. Time to remove these policies and make Malaysia better (not great because it won't be great. It never was great) again.
The neighbouring island state’s (Singapore) GDP in US dollars has even exceeded Malaysia's GDP despite having no resources.
Qurious: Companies will seek out those countries where labour is cheaper. Manufacturers have been moving out of Malaysia for more than 10 years now. It's nothing new.
Why build factories here only to hire foreign workers? Doesn't make sense as foreign countries also offer incentives just as good as Malaysia with comparable infrastructure too.
Economy Minister Rafizi Ramli is right. That's why we need to now build a knowledge economy. The electronics manufacturing bubble for sure has long burst here in Malaysia.
HoyoHoyo: Water will find its level for Panasonic. The market mechanisms of supply and demand always rule. Factors affecting supplies are pricing, production costs, future expectations of cost increased input costs and bad government policies.
Demands for their products are affected by pricing, consumer spending, and changes in trends. Market forces will compel Panasonic to shut down or relocate. Profitability and survival are keys in any enterprise.
Labour productivity, corruption, extremism, minimum wage fiasco, and conducive governance are secondary factors. It is too late. Panasonic rushed and expanded here during the 1990s.
Water will always find its own level.
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