Follow us on Telegram for the latest updates: https://t.me/mothershipsg
On Thursday (Sep. 23), Japanese multinational company Panasonic announced that it will stop manufacturing refrigeration compressors in Singapore by the end of this month, and will be retrenching 700 employees.
Prime Minister Lee Hsien Loong expressed his sadness to hear the news, but also expressed gratitude to Panasonic for believing in Singapore.
Factory has been in Singapore since 1972
In a Facebook post on Friday (Sep. 24), PM Lee stated that he is "saddened" at the news that Panasonic will be closing its refrigeration compressor factory in Singapore, which has been here for nearly 50 years since 1972.
In that time, it has produced and shipped 285 million refrigerator compressors globally.
PM Lee also expressed his gratitude to Panasonic, which will continue to have a number of its operations based in Singapore:
"We are deeply grateful that Panasonic believed in Singapore and journeyed with us for the better part of our history.
Though this factory is closing, Panasonic’s refrigeration compressor global HQ and R&D functions will remain in Singapore."
Support for affected workers
Panasonic's refrigeration compressor manufacturing operations will be carried out in existing facilities in Malacca, Malaysia, and Wuxi, China instead.
Panasonic pointed to a "challenging global business outlook" as the background for its decision, as well as a "long-term business strategic review" of its refrigeration compressor business portfolio.
Of the 700 employees who will be retrenched, half are Singaporeans and 13 per cent are permanent residents, The Straits Times reported.
PM Lee noted that the National Trades Union Congress (NTUC) and the United Workers of Electronics & Electrical Industries (UWEEI) will support the affected workers and help them find new jobs.
In its statement, Panasonic said that Singapore remains "a regional and important hub", and that it will continue to employ over 1,400 employees in areas such as high-value manufacturing and research and development (R&D), as well as in Panasonic's Asia Pacific Headquarters.
"We will continue to invest in Singapore to support our growth strategies in the high-value supply chain and continue contributing to the communities in the Asia Pacific and beyond."
PM Lee stated that Singapore, and the Economic Development Board (EDB) in particular "highly value investors like Panasonic and will continue to partner them to create jobs and opportunities for Singaporeans".
Top photo via Google Maps Street View.
Follow and listen to our podcast here