Panasonic said it was only shutting down two product manufacturing departments at its Shah Alam 1 (SA1) plant after completing a rationalisation exercise and business restructuring on March 1.

“No other plants or departments other than the ones stated are affected,” it said in a statement.

The manufacturing giant said some employees in the affected departments were offered a mutual separation scheme (MSS), and that a significant number of them voluntarily chose this option.

“Employees who opted for the MSS have received fair and equitable compensation packages which are above industry norms,” it said.

“For the remaining number of employees who did not opt for the MSS, our human resource department has provided them with an offer to be transferred to other departments within Panasonic Malaysia, in positions that suit their skill sets and potential for growth.”

Earlier today, Malaysiakini reported that Panasonic’s SA1 plant will be shut down, while one of its factories in Melaka will also cease operations by the end of the year.

The news portal reported that this was the result of Panasonic losing two lawsuits last year involving its former suppliers, former executive director Chen Ah Huat, and employees.

It quoted a source as saying that Chen was made to leave the company in 2013, while the contracts of 15 managers were also terminated.

However, Panasonic said the two lawsuits, which were filed in 2016 and 2017, were “successfully resolved”.

“The said lawsuits are independent of and unrelated to the recent rationalisation exercise and business restructuring that was completed on March 31,” it said.

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