http://www.todayonline.com/articles/246319.asp
IN A sign of the competitive, innovation-driven times, electronics firm Motorola announced yesterday that it would phase out its mobile phone manufacturing operations here by the end of this year, but retain its Asia-Pacific operational headquarters in Singapore.The retrenchment of some 700 manufacturing staff — out of a total of 2,500 employees here — is expected, in line with the company's $500-million global cost-reduction initiative, said Motorola in a media statement. Its Singapore office will remain "a key site for regional management activities ... as well as research and development and software development activities".Employees were notified in an officewide memo on Tuesday morning and all affected staff were informed on Monday and Tuesday, added a company spokesperson. While Motorola's announcement came after a few quiet years on the mass retrenchment front — from post-Sars 2003 to the end of last year — Citigroup economist Kit Wei Zheng is not surprised by such a development. "It takes place after a few 'boomtown' years, when demand was high. But with the global economy slowing down and a squeeze on the costs side, it is not surprising," he said.Since the 1990s, various electronics manufacturers have "rejigged operations in Singapore", driven by the relative high labour costs in Singapore and the emergence of China as a manufacturing powerhouse, added Mr Kit.Companies such as Siemens, Philips and Panasonic have transferred production facilities out of Singapore, focusing their operations here on management, research and more capital-intensive production processes.Mr Kit said the recent potent mix of spiralling land costs, labour costs and appreciation of the Singapore dollar has increased cost pressures on manufacturers, and that "Motorola is not the first and won't be the last" to shift manufacturing operations out of Singapore.As for the workers, help may be on its way. Without providing details, Motorola said it will offer a severance package to permanent employees. It will also help improve the resume writing and interview skills of affected workers, while talks are under way with the Economic Development Board to help those laid off.The Workforce Development Agency will also help workers to upgrade their skills. This will be done with the Employment and Employability Institute and community development councils.
IN A sign of the competitive, innovation-driven times, electronics firm Motorola announced yesterday that it would phase out its mobile phone manufacturing operations here by the end of this year, but retain its Asia-Pacific operational headquarters in Singapore.The retrenchment of some 700 manufacturing staff — out of a total of 2,500 employees here — is expected, in line with the company's $500-million global cost-reduction initiative, said Motorola in a media statement. Its Singapore office will remain "a key site for regional management activities ... as well as research and development and software development activities".Employees were notified in an officewide memo on Tuesday morning and all affected staff were informed on Monday and Tuesday, added a company spokesperson. While Motorola's announcement came after a few quiet years on the mass retrenchment front — from post-Sars 2003 to the end of last year — Citigroup economist Kit Wei Zheng is not surprised by such a development. "It takes place after a few 'boomtown' years, when demand was high. But with the global economy slowing down and a squeeze on the costs side, it is not surprising," he said.Since the 1990s, various electronics manufacturers have "rejigged operations in Singapore", driven by the relative high labour costs in Singapore and the emergence of China as a manufacturing powerhouse, added Mr Kit.Companies such as Siemens, Philips and Panasonic have transferred production facilities out of Singapore, focusing their operations here on management, research and more capital-intensive production processes.Mr Kit said the recent potent mix of spiralling land costs, labour costs and appreciation of the Singapore dollar has increased cost pressures on manufacturers, and that "Motorola is not the first and won't be the last" to shift manufacturing operations out of Singapore.As for the workers, help may be on its way. Without providing details, Motorola said it will offer a severance package to permanent employees. It will also help improve the resume writing and interview skills of affected workers, while talks are under way with the Economic Development Board to help those laid off.The Workforce Development Agency will also help workers to upgrade their skills. This will be done with the Employment and Employability Institute and community development councils.
IN A sign of the competitive, innovation-driven times, electronics firm Motorola announced yesterday that it would phase out its mobile phone manufacturing operations here by the end of this year, but retain its Asia-Pacific operational headquarters in Singapore.The retrenchment of some 700 manufacturing staff — out of a total of 2,500 employees here — is expected, in line with the company's $500-million global cost-reduction initiative, said Motorola in a media statement. Its Singapore office will remain "a key site for regional management activities ... as well as research and development and software development activities".Employees were notified in an officewide memo on Tuesday morning and all affected staff were informed on Monday and Tuesday, added a company spokesperson. While Motorola's announcement came after a few quiet years on the mass retrenchment front — from post-Sars 2003 to the end of last year — Citigroup economist Kit Wei Zheng is not surprised by such a development. "It takes place after a few 'boomtown' years, when demand was high. But with the global economy slowing down and a squeeze on the costs side, it is not surprising," he said.Since the 1990s, various electronics manufacturers have "rejigged operations in Singapore", driven by the relative high labour costs in Singapore and the emergence of China as a manufacturing powerhouse, added Mr Kit.Companies such as Siemens, Philips and Panasonic have transferred production facilities out of Singapore, focusing their operations here on management, research and more capital-intensive production processes.Mr Kit said the recent potent mix of spiralling land costs, labour costs and appreciation of the Singapore dollar has increased cost pressures on manufacturers, and that "Motorola is not the first and won't be the last" to shift manufacturing operations out of Singapore.As for the workers, help may be on its way. Without providing details, Motorola said it will offer a severance package to permanent employees. It will also help improve the resume writing and interview skills of affected workers, while talks are under way with the Economic Development Board to help those laid off.The Workforce Development Agency will also help workers to upgrade their skills. This will be done with the Employment and Employability Institute and community development councils.
