Malaysia steps in to support 1,426 workers laid off after WRP Asia Pacific shutdown

Malaysia’s Ministry of Human Resources Malaysia has moved to safeguard jobs and support 1,426 affected employees following the shutdown of WRP Asia Pacific Sdn Bhd, with authorities rolling out wage protection, job matching and welfare measures.

The ministry, through the Department of Labour of Peninsular Malaysia, is closely monitoring the situation after the company ceased operations and appointed a liquidator. Authorities confirmed that all 1,426 employees, including 304 local and 1,122 foreign workers, were issued termination notices effective April 15.

To cushion the impact, a multi-agency response involving the Social Security Organisation and law enforcement has been activated. Workers’ claims for unpaid wages and termination benefits will be processed through Proof of Debt (POD) filings, while salaries for March 2026 have already been paid and April payments are being finalised.

Some local employees are being offered temporary contracts to support critical operations during the wind-down phase, including administrative, financial and technical maintenance functions. At the same time, PERKESO has provided briefings on the Employment Insurance System (EIS), offering eligible workers access to temporary financial assistance.

Efforts are also underway to help displaced workers transition into new roles. Through the MYFutureJobs platform, authorities are profiling affected employees and matching them with potential employers, alongside providing career guidance and counselling support.

For foreign workers, the employer has assured continued provision of accommodation and food until relocation arrangements are completed, with steps being taken to facilitate redeployment with new employers.

The intervention follows the company’s decision to wind down operations from April 15, driven by escalating global supply chain disruptions. In a letter to customers dated March 31, WRP cited “significant” increases in petrochemical-derived raw material costs, procurement uncertainties and tighter supplier terms, including advance payment requirements.

The shutdown comes amid wider fallout from the United States and Israel-led war, which has disrupted energy markets and driven up costs for industries reliant on petrochemicals. Glove manufacturers have been particularly affected due to their dependence on nitrile latex, with key input costs such as butadiene surging sharply.

Industry body Malaysian Rubber Glove Manufacturers Association has warned that supply disruptions, including those linked to the Strait of Hormuz, have placed severe financial strain on manufacturers. Major players such as Top Glove Corp Bhd have already raised prices and explored alternatives like natural rubber gloves.

The ministry said it will continue to oversee the situation to ensure full compliance with labour laws and a fair, transparent process, while urging the public to avoid speculation as documentation and claims settlement continue.