The Ministry of Human Resources (Kesuma) has activated early intervention measures for 541 employees facing retrenchment at Panasonic AVC Networks Kuala Lumpur Malaysia Sdn Bhd, with assistance ranging from temporary income support to job matching and skills training.
Human Resources Minister Datuk Seri R. Ramanan said the ministry was implementing a “from job loss to new job” approach together with the Department of Labour Peninsular Malaysia (JTKSM) and the Social Security Organisation (Perkeso).
He said the aim was to ensure affected workers would not be left without support during the transition and could return to employment as soon as possible.
415 local workers, 126 foreign workers affected
According to JTKSM, the retrenchment involves 415 local employees and 126 foreign workers, with the exercise set to take place in two phases.
The first phase is scheduled for Oct 31, 2026, while the second will take place on March 31, 2027.
JTKSM’s Subang Jaya Labour Office received the company’s retrenchment notifications on July 23 and 27, before conducting an investigation on July 27.
RM64.38 million in employee payments
Ramanan said Panasonic had committed to paying all benefits owed to the affected employees, including outstanding wages, payment in lieu of notice, payment for unused annual leave and termination benefits.
The total amount is estimated at RM64.38 million.
JTKSM will continue monitoring the retrenchment process and ensure the company fulfils its obligations under labour laws. Enforcement action could be taken if the company fails to meet those responsibilities.
Perkeso to help workers find new jobs
Perkeso will begin profiling the affected employees to identify their individual needs before providing assistance.
Eligible workers will receive guidance on applying for Employment Insurance System (SIP) benefits, which can provide temporary income support while they look for new employment.
They will also receive career counselling and job-matching assistance through MYFutureJobs, along with opportunities to attend interviews with employers that have vacancies.
Workers who need to upgrade or change their skills will also be offered reskilling and upskilling programmes to improve their chances of securing new jobs.
Panasonic production operations to be closed
The retrenchment follows Panasonic’s decision to close production operations for two products at its Malaysian operations.
Panasonic Malaysia had previously announced that the closure would affect around 400 employees by the end of March next year.
However, Kesuma’s latest update puts the number of employees involved in the retrenchment exercise at 541, including both local and foreign workers.
Ramanan said Perkeso and JTKSM would meet Panasonic to coordinate further measures involving employee protection, benefit eligibility and job placement.
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