Malaysia still ‘on the upside’ despite Goodyear pull out, say special select committee

KUALA LUMPUR: The impending closure of the Goodyear Tire and Rubber Company’s factory in Shah Alam is not indicative of the positive prospect for foreign direct investments in Malaysia, says a special select committee.

Special Select Committee On International Relations and International Trade chairman Wong Chen said while the impact of the closure on the 550 workers should not be played down, Malaysia was still “on the upside overall.”

“Losing investment in Goodyear is an issue that is quite painful.

“But in the context of the gains we are making in the semiconductor industry, I think on an overall balance sheet position, we are better,” he said on Thursday (March 21).

Wong said the committee discussed the landscape of foreign direct investment with several ministries and industry experts, and it received positive feedback.

“AT&S in particular invested about RM7bil to RM8bil in the semiconductor industry

“And in particular, realising the situation of the China-US trade war, there are opportunities with the right drive and the right position to ensure investments flow to Malaysia,” he said, referring to the Austrian manufacturer of high-end printed circuit boards.

Wong added that the committee was preparing its recommendations for the government, which would be announced later.

Malaysia University of Science and Technology economics professor Dr Geoffrey Williams, who was present, pointed out that it was not in the hands of Malaysian policymakers when companies like Goodyear opted to leave.

He said Goodyear’s manufacturing plant could be old and labour-reliant.

“When it moves towards new technology, it’s likely that plants focused on employing many people will be at a disadvantage against those plants that use a great deal of new machinery,” said Dr Williams.

Political economist and green supply chains specialist Khor Yu Leng, who was also present, said there was interest and capability in Malaysia to deliver to global supply chains for high compliance with environmental, basically non-deforestation products.

“Malaysia is in a wonderful position to do this,” she said.

While everyone has their opinions, Khor said Malaysia’s position in South-East Asia enabled it to “access all supply chains.”

“Looking at the cost-benefit of these things in a very open and focused way, people will see these opportunities,” she added.