KUALA LUMPUR: The Malaysian Investment Development Authority (MIDA) described Samsung Electronics Display (M) Sdn Bhd's decision to cease its operations in Seremban as unfortunate.
"It is unfortunate that Samsung Electronics has to cease the operations of its TV manufacturing facility.
"However, we recognise that this was a decision made after careful consideration. We understand that the closure is mainly due to challenging business environment and changing market conditions, as well as the strategic restructuring of the whole operation of Samsung entities in Malaysia,"said its CEO Datuk Azman Mahmud in a statement.
He noted Samsung's commitment to provide fair and reasonable supporting programs for its affected employees.
Samsung continues to make Malaysia an important base within the ASEAN market through its other entities such as Samsung Electronics Malaysia Sdn. Bhd. (SEMA), Samsung Malaysia Electronics Sdn. Bhd. (SME) and Samsung SDI Energy Sdn. Bhd. (SDIE).
SEMA is the only Samsung manufacturing plant producing microwave ovens in the world while SDIE produces one third of Samsung's global cell battery production.
Another notable entity, Samsung Engineering (Malaysia) Sdn. Bhd. is heavily involved with several hydrocarbon and industrial projects in Malaysia.
According to MIDA, Samsung as a group in Malaysia will continue to maintain its more than 5000 workforce in the country.
"The company is committed towards providing fair and reasonable supporting programmes for its affected workforce and these workers could potentially be absorbed into other Samsung companies in Malaysia."
Malaysia continues to attract 521 additional manufacturing projects for the first nine months of 2015. Negeri Sembilan alone attracted 29 new manufacturing projects. These approved manufacturing projects will create jobs for 1,930 locals in the State.
The E&E industry continues to be a key driver of the Malaysian economy, with significant contribution to the country's manufacturing output, employment, investments and exports.
"Our key priority following Samsung's announcement is to ensure minimal disruption to the affected employees and those within its supply chain. We will also work with Samsung to make this transition as easy as possible. MIDA remains open and committed to support and facilitate any future investments Samsung may plan in Malaysia," said added Azman.