Slowdown Shaves IT Growth to 12 percent

By Julian Matthews

The Asian financial meltdown has begun to take its toll and the signs of a slowdown in 1998 are already showing.

O K Lee, chairman of the northern branch of the Federation of Malaysian Manufacturers, said a number of manufacturers have begun to downsize their operations and have frozen recruitment, controlled overtime, and reduced shifts.

“The slowdown has mainly affected companies which have high imports of equipment and raw materials and are dependent on local and regional markets,” he said. He added that companies that have taken out foreign loans are also in a bind.

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Global Slowdown Strikes Malaysian Electronic Factories

By Julian Matthews

The global downturn in the electronics industry is beginning to be felt in Malaysia following the closure of factories and a slowdown in production of existing plants.

Many factories, mainly in Penang, have put a freeze on recruitment and are controlling overtime, reducing shifts and shutting down during weekends, claimed OK Lee, chairman of the northern branch of the Federation of Malaysian Manufacturers.

“Business will be slow for the next six months, possibly until early next year,” Lee said.

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