Saturday, January 24, 2009

Intel to close two plants in Penang

Former Malaysian Prime Minister Mahathir Mohamad called for boycotting the US dollar and US made products, including Coca-Cola, in protest over Washington's backing of Israel.


The former premier said while governments might not be able to support the move as many were “scared stiff” of the superpower, the people could play their part to “save Palestine.”

It does sound like a good idea but practically boycotting US products will not measurably hurt and bring the US economy crashing down or otherwise, the devastating effects are great.


Let's take a look at the plan of the US chipmaker Intel Corporation which suggest closing two its existing assembly test facilities in Bayan Lepas, Penang.

The closure of the Intel PG6 and PG7 plants in Penang would affect over 1,000 of employees but the company would not lay off any workers, instead offering the effected workers comparable job positions in its other Malaysian plants.


Intel has a total of six plants in Malaysia running manufacturing, research and development and other services. With three plants in Penang and another three in Kulim, Kedah, Intel Corp in Malaysia have about 10,000 employees.

The question remains: Should Intel pull out their investment in Malaysia resulted from boycotting, can anyone responsible taking care of the 10,000 direct affected employees?

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