CJ Bio Malaysia factory closure in Kerteh, Terengganu affects 372 workers

Ministry of Human Resources (KESUMA) has taken intervention measures to protect the rights of the employees affected.

Malaysia’s Ministry of Human Resources (KESUMA) has taken intervention measures to protect the rights of 372 employees affected by CJ Bio Malaysia Sdn. Bhd.’s decision to end its factory operations in Kerteh, Terengganu from 15 October 2026.

In a media statement on 7 October 2026, KESUMA said the intervention, carried out through the Peninsular Malaysia Manpower Department (JTKSM) and the Social Security Organisation (SOCSO), is aimed at protecting workers’ rights and supporting their transition to new jobs.

JTKSM is focusing on employer compliance relating to the termination of employment, including the payment of salaries and termination benefits, and will onitor the company’s implementation of the employee terminations in line with the Employment Act 1955 and its related regulations.

At the same time, SOCSO has conducted profiling sessions for affected workers, and provided information on Employment Insurance System (SIP) benefits, benefit application procedures, and registration on the MYFuture Jobs portal.

As of 6 October 2026, 224 workers had participated in the sessions, which also included skills enhancement to help identify suitable job opportunities.

The sessions continued on 7 and 8 October to complete the profiling process.

The intervention has also resulted in affected workers being placed with CHEC Construction through a career carnival organised by SOCSO at Dungun Polytechnic.

In addition, three local companies have been identified and have expressed their willingness to employ affected workers. SOCSO is finalising details of the positions offered.

Relocation efforts are also being carried out by the Terengganu Human Resource Development Centre (T-HRDC) in collaboration with the Terengganu state government.

Meanwhile, the Malaysian Investment Development Authority (MIDA) is identifying new investors that could potentially take over or replace operations at the site. The state government is also involved in facilitating land lease arrangements.

KESUMA said it will continue to monitor the development through the relevant agencies.

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