Goodyear Malaysia Closure: Rafidah Questions Govt’s Motives

CariCarz.com reported yesterday that Goodyear Malaysia decided to wind down its manufacturing operations in Malaysia. The decision entails the closure of its tyre production facility in Seksyen 15, Shah Alam.

This announcement came oddly through a leaked memo issued by Goodyear Asia-Pacific president Nathaniel Madarang. The exec stated that it was not an easy decision at the corporate level, but it was necessary to advance the long-term interests of both the firm’s business and customers, with an annual cost reduction target of US$1 billion (RM4.7 billion).

The manufacturing facility will cease operations on June 30, 2024, with the exercise expected to be fully completed by the end of the year. Over the past decade, the Goodyear Shah Alam plant has been revamped, with part of the land leased out and numerous cost-cutting measures implemented.

So far, neither Goodyear Malaysia or its General Manager, Alex Ng, has made an official announcement on the matter. A quick look at the brand’s social media accounts shows business as usual, with the legacy tyre giant sharing vehicle safety tips and photos of happy employees from previous outings.

There has been no comments from any employees or related parties on this matter so far either, thus implying a possible gag order in place in anticipation of compensation finalisation. Most netizens however are pointing fingers at two possibilities: the ongoing boycott of American brands supporting Israel - which is a gross misconception - and the recent increase in taxes from 6% to 8%.

Datuk Seri Amirudin Shari, the Chief Minister of Selangor, stated in parliament yesterday that the closure of its Shah Alam facility was part of Goodyear's restructuring efforts and has affected 1,200 employees in Europe, the Middle East, Africa, and Asia. Based on this figure, it is clear that almost half of the employees set to be affected are from Malaysia.

Amirudin also stated that Goodyear was unable to compete with other industry giants such as Michelin, Continental, and Bridgestone, resulting in the company facing high cost pressures and seeking locations with lower operating expenses.

Meanwhile, Malaysia's Iron Lady, former International Trade and Industry Minister Tan Sri Rafidah Aziz, took to Facebook to express her surprise at this development, citing Goodyear's long history in the Malaysian industrial sector. She went on to urge the current government to pause and investigate why this happened, and to respond quickly.

In her words, "a bird in the hand, is worth two in the bush," indicating the current government's ambition in "gloating" and "chasing" billions of dollars in "possible" investments. This is possibly leading them to neglect assisting and protecting industries and businesses that are already here and could use the government's help to keep the doors open rather than moving to a different country that is more welcoming.

She also says that the Ministry of Investment, Trade, and Industry, led by YB Tengku Zafrul, needs to stop over-politicising (shiok sendiri, in her words) signed memorandums of understandings (MOUs) that have no immediate benefit but instead focus on studying the "push and pull" factor that has led to companies ceasing operations and moving elsewhere.

Source: Malay Mail & NewStraitsTimes