Reports: Some Japanese companies may relocate out of Thailand after the beating taken from last year’s floods

Reports: Some Japanese companies may relocate out of Thailand after the beating taken from last year’s floods

A report states that a number of Japanese companies with manufacturing operations in Thailand are set to relocate out of the country after the beating they took from last year’s floods.

According to a survey, almost one in 10 Japanese companies are set to hightail it out of the Kingdom, the AFP reports. The survey, carried out by the Japanese Chamber of Commerce Bangkok, polled 1,345 companies, of which 366 firms responded.

The statistics have it that 8% of the manufacturers plan to relocate out of the country, while 85% say they will resume their business in the same place. Some companies say they will move, but within Thailand. While 72% of manufacturers were expected to resume their operations between last December and this month, a further 21% said they would restart sometime in April to May, and 6% in June or later.

Of those companies surveyed, electronics manufacturers were the hardest hit on the whole, with more than half directly affected by the disaster. For automakers, Honda was dealt the most severe blow, when its factory in Rojana Industrial Park, Ayutthaya was submerged in early October. The company has said it plans to resume vehicle production at the plant by the end of March.

The JCCB said that the companies that are resuming late have to wait for new machinery imported from Japan, and some are still waiting to see the Thai government’s flood prevention plan – the JCCB has urged the Thai government to speed up the implementation of a flood control plan.

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Henry on Mar 01, 2012 at 9:48 pm

    How about coming to Bolehland? They are most welcome.

    Like or Dislike: Thumb up 0 Thumb down 0
  • rockapolla on Mar 01, 2012 at 9:51 pm

    Malaysia should take this chance to promote them a better place.. but there will be a great competitor from indo..

    Like or Dislike: Thumb up 0 Thumb down 0
    • Chilavert on Mar 02, 2012 at 8:20 am

      agree. even our labor cost is higher than our neighbouring countries, but in other area, we are better. we are clear from earthquake, volcanos, massive flood (only in some area) and our political and economic stability is better. also give them extra rebate on whatever tax that may have been imposed. come, come to Malaysia. haha

      Like or Dislike: Thumb up 0 Thumb down 0
    • GTR 2.0 on Mar 02, 2012 at 6:01 pm

      Gov should promote East Coast states such as Kelantan. Labour cost will be cheaper there.

      Like or Dislike: Thumb up 0 Thumb down 0
      • Kelantan may not such a good idea
        there suffer a lack of competent workers.
        Gurun in Kedah is the best place to doing business
        Naza have been there since 2003.
        the infrastructure and resource are available thus, no need to worried about the facilities. Just upgrade and we will have the advantage.
        The Million question is whether Malaysia ready to liberalise it’s NAP?

        Like or Dislike: Thumb up 0 Thumb down 0
  • Even if they move, it wont be to malaysia, most likely to indonesia or vietnam which are more pro business and with cheaper labour costs. And for sure the spouses of the expatriates that come along do not need to negotiate with the taxi drivers when trying to board one. In vietnam & indonesia, you just get in , tell the driver your destination and the meter runs!

    Like or Dislike: Thumb up 0 Thumb down 0
    • jalan2 on Mar 01, 2012 at 11:27 pm

      u definitely, hvn’t been to indonesia. only blue and white taxi uses meter. others u still need to nego :p

      Like or Dislike: Thumb up 0 Thumb down 0
      • Mietawar on Mar 02, 2012 at 12:28 am

        u go to Indonesia and experience yourself living there. U drive there you have to pay the unofficial traffic warden every turn and corner.

        Like or Dislike: Thumb up 0 Thumb down 0
        • kusochon on Mar 02, 2012 at 12:54 pm

          sometime in crowded area you have to pay the guy who tahan the taxi and open the door for you even though you never ask them to…

          Like or Dislike: Thumb up 0 Thumb down 0
    • Cahaya on Mar 02, 2012 at 12:51 pm

      And you definitively have’nt been to Vietnam. Vietnam is not pro-business. It is a communist govt…and there is virtually no transparency. Corruption is even worse than Indonesia.

      Like or Dislike: Thumb up 0 Thumb down 0
  • niceone on Mar 01, 2012 at 11:32 pm

    those lazy-ass government officers must try to get those companies move here!

    Like or Dislike: Thumb up 0 Thumb down 0
  • orang biasa on Mar 02, 2012 at 12:24 am

    Honda may move to Melaka…..

    Like or Dislike: Thumb up 0 Thumb down 0
  • drMpower on Mar 02, 2012 at 1:05 am

    we got to accept labor cost here significantly higher than vietnam, indonesia and high than thailand. so in term of competitiveness tax rebates etc we dont have any problem whatsoever

    infact honda got plants here, kia, pugs, vw soon. and they are getting better labor quality here and of course it cost bit more. so government should and already stripped some of unnecessary tax on these manufacturers and afta is on full throttle at the moment.

    the only reason car prices not cheaper is dealers profit which of course isnt within anybodys reach except the dealers.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Dartz on Mar 02, 2012 at 7:47 am

    Instead of giving a free tax to lynas for 10+ year, the gov should enticed the Japs with similar incentive’s.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Meanwhile, another disaster news is Protongkat’s continued loss…wonder why Paul Tan missed this news though…

    The Japanese aren’t fool enough to relocate to Bolehland lah…better brave the flood in Thailand than cohoot with flood of Kronies here incur even more Krony costs losses…

    In fact Protongkat losses always due to higher Kronies cost but choose anything else to blame…
    _____________________

    Proton posts RM84m loss in 3Q2011
    Thursday, 01 March 2012

    (Bernama) – National car manufacturer Proton Holdings Bhd’s pre-tax loss widened to RM84.054 million for the third quarter ended Dec 31, 2011 compared to a pre-tax loss of RM51.535 million in the same period in 2010.

    In a statement, the company said the weaker performance was due to a decline in year-end sales which resulted in the adjustment of production numbers to better manage costs.

    Revenue decreased to RM1.432 billion from RM1.833 billion previously.

    Meanwhile, the revenue for the first nine months also dipped to RM5.92 billion from RM6.36 billion on the back of a RM36.530 million loss before taxation against a pre-tax profit of RM134.3 million recorded in the corresponding period in the preceding financial year.

    Group chairman Mohd Nadzmi Mohd Salleh said the lower profit was largely attributed to lower revenue recorded from domestic sales.

    However, the unfavourable impact from the lower revenue was cushioned by a decrease in manufacturing overheads and lower administrative expenses incurred in the same financial period, he said.

    “Additionally, the result was also affected by lower volume sales of Lotus cars in Europe in the past quarter,” he added.

    Furthermore, Mohd Nadzmi said the one-month delay of the launch of Proton’s latest model, the Exora Bold, had affected projected sales.

    “However, the delay was necessary to ensure that all issues were addressed and that customers would get the best from the car,” he said.

    According to the Malaysian Automotive Association, total vehicle sales fell 25% to 40,948 units in January from 54,781 units in the same period in 2010 due to tighter hire purchase loan approval requirements, shorter working month and further impact from Thailand’s flood disaster.

    Mohd Nadzmi said following the sluggish performance of the industry, Proton expects challenging times ahead with further low sales volume after Bank Negara recently maintained that it will not review or adjust the new loan guidelines.

    On its expansion strategy on the global front, he said the group is finalising plans to export left-hand drive Completely Built-Up (CBU) units of its models assembled in China to selected target markets.

    Additionally, Proton Iran, which is 100%-owned by the group, was recently launched with the objective of serving after-sales demand of existing customers, he stated.

    “The next step was to start selling cars in Iran again using the left-hand drive CBUs,” he added.

    After the successful opening of the first full-fledged Proton Platinum showroom in Medan, Sumatra, the national car brand will open another Platinum showroom in West Jakarta to support the growing response in the Indonesian market.

    Despite the challenges, Proton in a collaboration with Yes, a 4G network provider under YTL Communications Sdn Bhd, is due to launch Malaysia’s first in-car 4G Internet access in its high-end cars and the new sedan P3-21A next month.

    Going forward, the group will continue to explore more opportunities to enhance and generate income from other business avenues, particularly through its after-sales services and parts.

    As at Dec 31, 2011, Proton’s cash bank balances stood at RM1.18 billion.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Wisdom on Mar 02, 2012 at 9:25 am

    Careful to those buying new cars imported from thailand..

    If i remembered correctly, Camry, Altis, Fiesta, some BM’s and other few models were imported from Thailand. Yes they have resume operation and have re-calibrated their machineries, still they might be some inconsistency in assembly process they overlooked.

    Not to mention the recycled/salvaged parts which has been submerge during the flood.

    Like or Dislike: Thumb up 0 Thumb down 0
  • kabal on Mar 02, 2012 at 9:42 am

    ducati plant in thailand also should move here..

    Like or Dislike: Thumb up 0 Thumb down 0
  • As expected laa. Initially, mostly denied, they said can recover bla bla bla. Eventually, they will come to Malaysia. This is Bolehland! But cannot say loud. Safe the waterface.

    Like or Dislike: Thumb up 0 Thumb down 0
  • The government should have taken opportunity to set up teams to entice those impacted in Thailand to come over to Malaysia. Did we do anything? I hope we did. However judging from the pace our country does things, we could have just sat on our big butts since the flooding till now waiting for cow to drop from the sky.

    I hope Penang’s state government did something The BN government is hopeless.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Apalalu on Mar 02, 2012 at 3:00 pm

    Dear Japs company, come and flood Malaysia or you will get flooded elsewhere.

    Like or Dislike: Thumb up 0 Thumb down 0
  • shawal on Mar 04, 2012 at 1:37 am

    welcome to malaysia, we hv cheap indon n bangladeshi workers, 2 in 1 bebeh!

    Like or Dislike: Thumb up 0 Thumb down 0
  • pelams on Mar 11, 2012 at 3:14 pm

    n also a cheap glass of plain water which is 50sen..

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required