GEORGE TOWN: Close on the heels of Esquel Group’s announcement to exit from Malaysia, another Hong Kong apparel maker said it plans to do the same.
The 70 year-old TAL Group has announced it will cease operations of its two Malaysian factories, Pen Apparel in Penang (PAP) and Imperial Garments (IG), in Ipoh.
In a letter to employees, the company’s senior vice-president for manufacturing, Florence Lai, cited the Covid-19 pandemic as having adversely impacted leading garment manufacturers.
In a 2016 report, TAL had said it had 22,344 global employees, and Malaysia made up 26 per cent of that global headcount.
The PAP and IG facilities were established in 1982 and 1987 respectively, and has served customers like Brooks Brothers, LL Bean and Bonobos.
“We will proceed with the closures in full accordance with Malaysian regulatory requirements. We are finalising the actual closure dates in due course.
“All customer orders currently handled by these two factories will be diverted to our other factory locations in Asia,” Lai said.
The TAL Group has 11 factories across Asia.
Lai said the company will identify opportunities for its employees who are able and willing, to be transferred to other factories throughout the region.
“For those ending their tenure at TAL Group, we pledge to meet all legal and social requirements in terms of severance compensation.
“We will also work with local authorities in assisting the repatriation of foreign workers, under the current context of the local Movement Control Order and international travel restrictions,” she added.