Toshiba quits S'pore without fanfare
On Wednesday, its factory at Alexandra Distripark downed its shutters for good.
AFTER 27 years of operations and a series of retrenchments, Toshiba Singapore finally pulled the plug on its entire manufacturing operations here.
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Quietly and without much fanfare, the Japanese electronics giant confirmed on Friday that it has permanently shut down its manufacturing division in Singapore, which is based at the Alexandra Distripark along Pasir Panjang Road.
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A Toshiba Singapore spokesman told Today that a total of 21 staff — out of a group of 40-odd workers — were axed from the payroll as the factory closed for good on Feb 1 — ironically the day many Singaporeans returned to work after the Chinese New Year celebrations.
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While the exact reason for the closure is not immediately known, soaring operations and rental costs are believed to have played a part in the decision.
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Ten years ago, Toshiba Singapore shifted part of its production of televisions to Jakarta, before moving the remaining portion to Malaysia last year.
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A spokeswoman, however, said that despite the closure of its manufacturing division, the company's other units in Singapore, such as its service centres, remain unaffected.
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However, she declined to say how many people were hired in these units.
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At its peak in Singapore, Toshiba employed about 1,600 people in its manufacturing arm, said a retrenched worker, who spoke on condition of anonymity.
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But for him, the writing has been on the wall for some time.
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The 55-year-old production material manager, who has been with Toshiba Singapore since Day 1, said he was "not surprised" as retrenchments had taken place in phases over the years.
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He estimated that "more than 1,000" people have been laid off in total.
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"It's been a gradual process, we had about 1,600 people at the beginning, before the numbers were reduced to 200 about four years ago," he told Today.
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Of the colleagues who still remain, he said six more workers would be retrenched next Friday, while the rest will be transferred to the company's Research and Development department at the Alexandra Technopark.
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When asked to sum up the mood at the office last week, the source said it was one of acceptance.
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"We understand that it is difficult for any manufacturing company to survive here. For one thing, the rental is so expensive ... But it's okay, I'm trying to find a new job, maybe in the supply chain or logistics areas," he said.
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Toshiba Singapore is a subsidiary of the US$53 billion ($86 billion) Toshiba Corporation, one of the world's largest manufacturers of electronic and computer equipment. It employs about 165,000 employees worldwide.
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The closure of the Toshiba Singapore plant comes less than a year after another major manufacturing firm, Maxtor, shut down its Ang Mo Kio facility and shed up to 5,000 jobs.
On Wednesday, its factory at Alexandra Distripark downed its shutters for good.
