Penang Wants RM500M Retrenchment Fund

In anticipation of retrenchment and layoffs, the Penang state government is asking for RM500 million from the federal government as part of the setting up of a retrenchment fund.

Apart from the RM500 million, the state government itself will be allocating RM50 million from their own budget for the purpose, which is expected to be launched as soon as in the next one or two months.

A committee that will be liaising with major corporations having their operation in Penang will also be established so that any plan of downsizing and retrenchment can be discussed in advance. Sources from the industry analysts predict that between 2,000 to 3,000 employees working with a number of companies in Penang are set to lose their jobs within the next few months as the companies are now laying out plans to reduce their workforce size.

Once set up, the retrenchment fund will be mainly used to retrain the retrenched workers and get them back to the employment market as fast as possible.

A number of factories in Penang have been planning temporary shut downs for their plants, with retrenchment exercises looking not too far away as the financial turmoil is starting to hit hard. The northern state used to be an attractive host to prominent companies, particularly in the manufacturing sector, but is now struggling to retain the top notch industry players and prevent further losses in foreign investment.

Other posts you may want to read:

1. No Job Loss in Intel Penang Closure
2. Penang Layoffs Not Critical: Guan Eng
3. Intel to Shut Down Penang Plants
4. Government May Set Up Retrenchment Fund
5. Companies in Penang Still Hiring
6. Layoffs For 1,400 Workers in Kedah
7. No Increase in Retrenchment Figure
8. Retrenchment Fund: Risk Assessment on the Way

Author's bio: Zul is the founder and principal contributor for the SKOR Career blog. He is the author of two books, The Malaysian Job Seeker's Dilemma and Buat Duit Tanpa Kerja Makan Gaji (How to Make Money Without a Job), available in major book stores nationwide. You can reach him at zulkiflimusa[at]gmail.com.