As global economies such as those in Europe and the US are suggesting a picture of “gloom and doom”, some high technology companies operating in Malaysia are exercising caution as cost-control kicks in place with hirings and capital expenditure.
For others, however, it is business as usual.
While a flat outlook is being projected for business with major expenditures put on hold “until further notice”, there remains some optimism among members of the Malaysian American Electronics Industry (MAEI), as they look towards a small growth this year as compared to 2010.
MAEI is made up of 20 member companies and the group includes some of the world’s top technology names like Intel, Motorola, Dell and Agilent Technologies.
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“Most of our members have put hiring on hold, especially in manufacturing-related areas until they have better clarity of the business forecast.
“However, in the areas of design and development, hiring is being done on a selective basis, depending on the needs,” MAEI chairman Datuk Wong Siew Hai told Business Times.
For the world’s biggest chipmaker Intel, which currently employs around 10,000 people across its operations in Penang, Kulim and Kuala Lumpur, a cautious approach to hiring is being adopted, given a lower consensus economic forecasts for 2012.
“We continue to honour offers made to date,” a company spokesman said and stressed that Malaysia remains a key strategic location for Intel, and it will continue to invest accordingly.
US technology giant Agilent Technologies meanwhile, continues to invest in skilled talents as it expands its diverse operations in electronics and life sciences.
The company, whose investment presence in Malaysia spans close to four decades, expects it Penang operations to continue playing a key role in its ongoing efforts in areas like wireless manufacturing, academia and research, energy and food.
“We see a challenging economy ahead of us, but we are in strong position to navigate through this,” Agilent Malaysia and Singapore president Gooi Soon Chai said.
For companies engaged in health-related activities and aerospace, the outlook does not appear to be as cloudy as their other manufacturing counterparts.
For electronics manufacturing services giant Flextronics International Ltd, there appears to be no holding back the company from its planned expansion and hiring activities in Malaysia.
“Our growth plans in Malaysia across the business verticals remain intact and stable so far,” its senior vice-president of finance for Asia, Manny Marimuthu said.
He singled out Flextronics’ medical business as a sector which is generally “immune” to economic turbulences and said that the company remains on track to grow its Malaysian workforce as announced last year.
Singapore Aerospace Manufacturing (SAM) Pte Ltd, whose Malaysian operations are located in Penang, remains on hiring mode and says it is unlikely that its planned investments for Malaysia will be derailed.
“Our aerospace business division will not be affected as we are producing parts for new aircraft which are not launched into service yet, such as the Dreamliner Boeing 787 and Airbus A350,” SAM’s president and chief executive officer Jeffrey Goh said.
“These aircraft,” he added, “have been commissioned earlier, and their manufacture will proceed as planned. Therefore, our orders, which have been secured earlier, will not be affected.”
For SAM’s commercial business sector in Penang, which is mainly semiconductor driven, the company foresees a slowdown, Goh added and said they are aggressively pursuing new contracts for the equipment manufacturing and automation sectors.
BTimes
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