KUALA LUMPUR: IQ Group Holdings Bhd
will retrench 37 employees as it closes the manufacturing operations of its wholly-owned subsidiary, IQ Group Sdn Bhd (IQM), on May 5, 2026.
In a filing with Bursa Malaysia, the lighting and security manufacturer said the move follows the completion of the final production batch with no further orders, and is in line with efforts to “improve cost efficiency and better utilisation of resources.”
It added that the exercise “will not have any material adverse effect” on its financial position and is expected to support long-term operational efficiency.
IQ said the subsidiary has experienced a substantial reduction in manufacturing volume over the past three years due to a shift in customer sourcing to China for cost efficiencies, alongside the impact of US tariffs, which led to a significant reduction of order.
“Due to the above challenging external factors, the remaining production volume in Malaysia has reached a level that is not commercially viable to sustain efficient factory utilisation or fully absorb fixed manufacturing overheads and operating costs,” it added.
Following a review, the group will cease operations, retain a small team for third-party supply management, and carry out the retrenchment in line with applicable labour laws, with no internal transfers or separation schemes offered.
“They will be retrenched due to job redundancy in accordance with applicable labour laws and regulations,” it said.
The cessation of IQM’s manufacturing operations is expected to incur one-off closure expenses of about RM2.898mil, comprising RM460,000 from inventory write-offs arising from the shutdown, RM130,000 from fixed assets written off based on their current net book value, and an estimated RM2.308mil for retrenchment compensation.
“Following the closure, the group anticipated annual savings of approximately RM1.806mil in subsequent financial years,” it said.
The closure is expected to be completed by third quarter of 2026.
