KUALA LUMPUR (Feb 29): Samsung Electronics Display (M) Sdn Bhd (SDMA) has ceased its TV manufacturing facility operation in Seremban, Negeri Sembilan, after careful consideration, according to the Malaysian Investment Development Authority (MIDA).

MIDA said the cessation was due to challenging business environment, changing market conditions, as well as the group's strategic restructuring of the whole operation of Samsung entities in Malaysia.

"It is unfortunate that SDMA has to cease the operations of its TV manufacturing facility in Seremban, Negeri Sembilan," said MIDA chief executive officer (CEO) Datuk Azman Mahmud in a statement today.

"We understand that the closure is mainly due to challenging business environment and changing market conditions, as well as the strategic restructuring of the whole operation of Samsung entities in Malaysia.

"We are glad to note that Samsung is committed to provide fair and reasonable supporting programs for its affected employees," he added.

Notwithstanding its closure, MIDA observes that Samsung continues to make Malaysia an important base within the Asean market, through its other entities such as Samsung Electronics Malaysia Sdn Bhd (SEMA), Samsung Malaysia Electronics Sdn Bhd (SME) and Samsung SDI Energy Sdn Bhd (SDIE).

SEMA is the only Samsung manufacturing plant producing microwave ovens in the world, while SDIE produces 1/3 of Samsung's global cell battery production.

Another notable entity, Samsung Engineering (Malaysia) Sdn Bhd, is heavily involved with several hydrocarbon and industrial projects in Malaysia, noted MIDA.

MIDA also said that Samsung, as a group, will continue to maintain its more than 5,000 workforce in the country.

"The company is committed towards providing fair and reasonable supporting programmes for its affected workforce. These workers could potentially be absorbed into other Samsung companies in Malaysia," the statement read.

Azman said MIDA's key priority, following Samsung’s announcement, is to ensure minimal disruption to affected employees and those within its supply chain.

"We will also work with Samsung to make this transition as easy as possible. MIDA remains open and committed to support and facilitate any future investments [that] Samsung may plan in Malaysia," he added.