IQ Group Holdings Bhd is closing its manufacturing operations in Penang that produce motion sensors and lighting products due to declining orders.
The company said in a Bursa Malaysia filing that 37 employees will be retrenched, while a small team will remain to manage third-party supply and external manufacturers. It added that no alternative roles will be offered to affected staff.
IQ Group said the closure will not impact its other manufacturing operations in China, or its offices in Taiwan, Japan and the UK.
The Penang plant, operated by its wholly-owned subsidiary IQ Group Sdn Bhd, has seen a sharp drop in orders over the past three years as customers shift production to China for lower costs, while US tariffs also affected volumes.
The company said production in Malaysia is no longer commercially viable, with the final production batch completed in April and no new orders received since.
IQ Group added it has been coordinating with customers to manage inventory for remaining product needs, while some products have been redesigned for lower-cost manufacturing in China.
It said the closure affects about 5% of group revenue. One-off costs of RM2.9 million will be recorded for write-offs and retrenchment compensation.
The shutdown is expected to be completed by September and generate annual savings of about RM1.81 million.
For the financial year ended March 31, 2025, IQ Group posted a net profit of RM490,000, while revenue fell nearly 14% to RM110.35 million. Revenue has declined 17% over the past three years.
