Panasonic has announced the closure of its AVC Networks Kuala Lumpur Malaysia Sdn. Bhd. (PAVCKM) facility in Shah Alam, Selangor, by the end of March 2027. This decision is part of a global restructuring aimed at enhancing the competitiveness of Panasonic's audio-visual communications (AVC) business. Approximately 400 employees are expected to be affected by this closure.
The closure will impact the production of Panasonic televisions, Blu-ray Disc players, and Technics-branded Hi-Fi audio products. Television production is scheduled to cease by the end of September 2026, while the manufacturing of Blu-ray players and Technics audio products will be transferred to other Panasonic Group facilities. Despite these changes, Panasonic has stated that sales and service operations for TV and audio products in Malaysia will continue as usual.
In response to the impending job losses, the Selangor state government has initiated plans to support the affected workers. The state is collaborating with relevant authorities, government agencies, and the Electrical Industry Workers' Union (EIWU) to provide assistance, including job placement services and career transition support. This collaborative effort aims to ensure that the workers are well-supported during this transition period.
This development follows a series of similar closures in Malaysia, such as the Goodyear factory shutdown in Shah Alam in 2024, which affected approximately 550 employees. In that instance, the government mobilized a specialized team to facilitate job placements and offer upskilling programs for the affected workers.
The closure of PAVCKM underscores the ongoing restructuring efforts within Panasonic to optimize its manufacturing footprint and strengthen its global competitiveness. While the company remains committed to its operations in Malaysia, the transition may present challenges for the affected employees. The effectiveness of the support measures implemented by the state government and other stakeholders will be crucial in mitigating the impact on the local workforce.