GEORGE TOWN: More than 2,000 people have been laid off in Penang since the start of the Covid-19 pandemic.
Deputy Chief Minister II Dr P. Ramasamy, who is also state Economic Planning, Education and Human Resources, Science, Technology and Innovation Committee chairman, said while exact figures are unknown given changing circumstances, two garment factories have closed down, affecting more than 2,000 workers, mainly foreigners.
However, he said Invest Penang, the state government's principal agency for promotion of investment, is trying to get the retrenched workers absorbed by other companies, by engaging them in training schemes.
"The full effect of the pandemic might not be seen, but with normalcy slowly creeping in, Penang hopes to mitigate the worst effects of the virus.
"Since Miti (the International Trade and Industry Ministry) has given the green light for companies offering essential services to commence operations, we hope things won't get bad," he told the New Straits Times when asked on the number of retrenched workers in the state since the virus swept the world.
It was reported last month that following clothing company Esquel Group's announcement to exit Malaysia, another Hong Kong apparel company plans to do the same.
The 70 year-old TAL Group announced it will cease operations of its two Malaysian factories, Pen Apparel in Penang (PAP) and Imperial Garments (IG), in Ipoh.
Chief Minister Chow Kon Yeow had recently said Penang will set up a task force on "Economy New Normal" to identify "new normals" which could be introduced after the Movement Control Order (MCO) is lifted.
He said that it is undeniable that the Covid-19 pandemic has impacted the state economy.
In his Labour Day message earlier today, Chow vowed that the state government will help those who lost their livelihoods during the pandemic.
He said the Penang Career Assistance and Talent Centre, or CAT Centre, has begun data gathering for business matching and placement for employees of the two garment factories.
"The state government will also see to the needs of those impacted by the closure of operations soonest possible," he added.