Terengganu Menteri Besar Datuk Ahmad Razif Abdul Rahman on Wednesday announced the payment of RM500 compassionate aid to employees of Perwaja Steel Sdn Bhd whose services were terminated by the national steel company which is expected to wind up operations by the year-end.
He said a special committee, chaired by State Financial Officer Datuk Osman Muda, had been set up to identify the actual number of employees involved as against the initial 1,500.
“This (RM500) is the immediate aid for them. The committee has the cooperation of the State Economic Planning Unit and the deputy state secretary (management) to ensure smooth implementation.
“The process will be expedited to enable the payment to be made by Dec 31,” he told reporters after chairing the weekly meeting of the state executive council.
Perwaja, which was established under the heavy industry policy in 1982, saw several changes in management and suffered various problems including financial difficulties, to the extent of terminating operations.
Terengganu Industry and Trade Committee chairman Datuk Tengku Putera Tengku Awang had said previously that the state government had asked Eastern Steel Sdn Bhd of China to give preference to the recruitment of Perjawa employees.
The state government had held discussions with Eastern Steel, whereby skilled Perwaja employees would be employed by the Chinese company, but no decision was made on an intake quota.
Eastern Steel is the biggest steel manufacturer in Malaysia, developed with an investment of RM1.8 billion, on a 500-hectare site in Teluk Kalong, Kemaman.
The process of terminating the services of Perwaja employees was made known about a year ago, but the initial phase of the termination of services began only last September.
Its closure has become inevitable despite the injection of capital several times.
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