IPOH: The closing down of a multinational electronics company here on Monday has nothing to do with the state governments policies on foreign investment.
State Industrial and Entrepreneur Development Committee chairman Datuk Ramly Zahari said the state's policies had been favourable to foreign investors.
Expressing sadness over the winding up of Mabuchi Motor (Malaysia) Sdn Bhd, one of the biggest multinational firms in Perak, he said there was nothing the state government could do to help.
I was told that Mabuchi Motor here was losing out to its sister plant in China, which is also manufacturing the same type of products, he told reporters yesterday after attending the opening of the e-Biz Academy Entrepreneur Awareness programme.
Mabuchi Motor wound up operations after 16 years.
The factory, located in the Kanthan Industrial Estate in Chemor, had about 1,000 workers, 700 of whom were locals while the remaining were foreigners, mostly Indonesians.
Ramly said the state government had expected such a development as Mabuchi Motor was labour intensive.
We have noticed that foreign factories which are labour intensive are slowly shifting operations to countries offering cheap labour while those in knowledge-based businesses are expanding, he added.
He said the multinational electronics companies in Perak undergoing rapid expansion included Yamaha Electronics Manufacturing Sdn Bhd, Kamaya Electronics (M) Sdn Bhd, Murata Electronics (M) Sdn Bhd and Bromma (M) Sdn Bhd.