Malaysia moves to support 541 Panasonic workers facing layoffs

Malaysia’s Ministry of Human Resources (KESUMA) is rolling out early intervention measures for 541 employees of Panasonic AVC Networks Kuala Lumpur Malaysia Sdn Bhd who are facing retrenchment, with support focused on income protection, job matching and skills training.

Human Resources Minister Datuk Seri R. Ramanan said the ministry is adopting a “from job loss to new job” approach to help affected workers transition into new employment without prolonged periods of unemployment.

The initiative is being coordinated by the Department of Labour Peninsular Malaysia (JTKSM) and the Social Security Organisation (PERKESO), with interventions including Employment Insurance System (SIP) benefits, career counselling, job matching and reskilling.

“KESUMA will ensure that employees affected by job loss are given appropriate support and are not left to face this transition period without assistance. Through PERKESO, interventions will be mobilized as early as possible to help them obtain income protection and return to the job market,” Ramanan said.

JTKSM’s Subang Jaya Labour Office received the company’s Notification Form for Employee Retrenchment on July 23 and 27 and conducted an investigation on July 27.

The investigation found that 541 employees are affected, comprising 415 Malaysian workers and 126 foreign workers. The retrenchments will take place in two stages, on October 31, 2026 and March 31, 2027.

The company has committed to paying employees their contractual and statutory entitlements, including wages, wages in lieu of notice, payment in lieu of annual leave and termination benefits. The total payout is estimated at RM64.38 million.

“As a follow-up action, PERKESO and JTKSM will hold further discussions with Panasonic tomorrow to coordinate actions regarding employee protection, benefit eligibility, and job placement interventions,” Ramanan said.

Eligible employees will receive advisory support and assistance with applications for SIP benefits, which are intended to provide temporary income support during the transition between jobs.

PERKESO will first profile affected employees to assess their individual needs. Based on the assessment, workers may receive support with SIP claims, career counselling and job matching through MYFutureJobs. Interview sessions with employers that have vacancies will also be organised.

Workers who require new or updated skills will be offered reskilling and upskilling programmes to improve their employability and chances of securing new jobs.

Meanwhile, JTKSM will continue monitoring the retrenchment process and payment of employee benefits to ensure compliance with Malaysia’s labour laws. The department may take enforcement action if the company fails to meet its obligations.

The retrenchment follows Panasonic Malaysia’s announcement of the closure of production operations for two products. The company had previously said the move would affect around 400 employees by the end of March 2027.

The government’s early intervention highlights Malaysia’s growing focus on supporting displaced workers through income protection, skills development and faster access to new employment amid corporate restructuring.