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Wednesday, March 5, 2008

AFFIRMATIVE ACTION TO RETAIN PENANG MOTOROLA

Is the affirmative action taken to retain Motorola in Penang is wise? When addressing the issue, the micro and macro aspects should be taken into account especially the "three dire consequences" should Motorola decide to pull out are as follows:

It would cause a total of 10,000 jobs to be lost of which 4,000 are direct jobs in the Motorola facility in Penang and the remaining 6,000 jobs among Motorola suppliers and vendors in the country.

It would be a "bombshell" on the electrical and electronics industry in the country and the decision will trigger a highly probable domino effect with other multinational companies pulling out and long and short term political implication.

Moreover, the retention and expansion of the existing communication system for the Royal Malaysian Police radio network was erroneously conveyed as it will only cost less than RM1 billion for 10 years and not more than RM4 billion. The cost will cover an upgrading of the existing communication system which already in full operation over a 10-year period.

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