Malaysia to remain as Samsung's ASEAN base despite plant closure

Samsung continues to make Malaysia its ASEAN base through other entities despite the cessation of its TV manufacturing facility in Seremban, said Malaysian Investment Development Authority (MIDA) today.

Samsung's other Malaysian entities include Samsung Electronics Malaysia Sdn Bhd, Samsung Malaysia Electronics Sdn Bhd and Samsung SDI Energy Sdn Bhd.

"It is unfortunate that Samsung Electronics Display (M) Sdn Bhd has to cease operations of its television manufacturing facility in Seremban. However, we recognise that this was a decision made after careful consideration.

"We understand that the closure is mainly due to challenging business environment and changing market conditions, as well as, the strategic restructuring of the whole operation of Samsung entities in Malaysia," said MIDA CEO Datuk Azman Mahmud in a statement.

Samsung has a workforce of more than 5,000 people in the country and was committed towards providing fair and reasonable supporting programmes for its affected employees.

"These workers could potentially be absorbed into other Samsung companies in Malaysia," he said.

Azman also said MIDA's priority following Samsung's recent announcement was to ensure minimal disruption to the affected employees and those within its supply chain.

The investment promotion agency would also work with Samsung to make the transition as easy as possible.

"MIDA remains open and committed to support and facilitate any future investments Samsung may plan in Malaysia," he added.