Industrial Sector Will Bounce Back From Global Slowdown: Expert

GEORGE TOWN (Penang, Malaysia), Oct 13 (Bernama) -– The industrial sector has been urged to take the opportunity during the global economic slowdown to carefully plan their business modules for the future. Making the call, Infor Vice President South Asia, ASEAN and Pacific, Helen Masters, said the global economy will bounce back after a few years. "The economy is fluid and this is not the first time we are facing such a situation. Back in 2007 to 2009, we suffered a major blow which was considered by economists as the worst financial crisis since the Great Depression in the 1930s. We had overcome that and surely we can overcome this," said Masters at a press conference here Thursday. Masters, who is also an industrial expert, said that Penang is still a key industrial area in the northern region of Malaysia despite the slowdown and believes that the industrial sector will get through this phase. "Penang is currently going through a phase of retrenchment as the industrial sector is going through a restructuring process. However, companies will retain the experienced and skilled employees. At this time, the companies will review their business module and strengthen their weak spots," she said. Masters also said during low times, many things could be done and this is the best time for the companies to become as efficient as possible. According to the Malaysian Trades Union Congress (MTUC), over 2,000 workers have been retrenched so far this year,with the latest at TS Solartech Sdn Bhd where 241 employees were given 24-hour notice of their dismissal. MTUC had also voiced their concern that the retrenchment trend is expected to continue in the coming months. "This will affect us in a few years' time and when the economy has stabilised, the companies will be stronger and the hiring process will resume. This is just a phase," she said. Masters also applauded the government's efforts to raise the Gross Domestic Product (GDP) growth rate, as Malaysia had recorded GDP growth of 4-4.5 per cent this year. "This is much better compared to Singapore as they had only recorded a GDP growth of 2.1 per cent. This means that Malaysia is on the right track," she said. According to Organisation for Economic Co-operation and Development (OECD) statistics, Malaysia is one of five ASEAN countries -- the others are Indonesia, the Philippines, Thailand and Vietnam -- recording stable GDP growth. Meanwhile, Masters also said that despite the weakening of the ringgit, the export sector is doing well while more investments are coming in. According to Malaysian External Trade Development Corporation (MATRADE) statistics, total exports from January to August this year hit US$118.6 billion (RM500.33 billion) compared to US$117.46 billion (RM495.62 billion) in the same period last year. (US$1=RM4.21) Electrical and electronics products remained the highest grossing export item, accounting for US$43 billion (RM181.64 billion) or 36.6 per cent of total exports. -- BERNAMA