SINGAPORE--Local computer parts maker GES International Ltd will not cut its workforce, despite a 38 percent drop in earnings for the financial year ended June 30 2001.
The company, which designs and makes electronics parts, requires all its 1,300 staff to meet new orders. "Because we do have other orders that are expected to be fulfilled in the new fiscal year, we did not have to retrench any of our people," said GES managing director Danny Yeong to The Business Times.
Nor is GES planning to ask any of its employees to take leave, or reduce their work hours.
"We don't intend to reduce our work week because I don't think we need to take any drastic measures," said Yeong, while admitting that the economic outlook, especially in the US, was bleak.
One measure it will take, however, is to move some of its operations to China.
"If the business changes to lower-end models, Singapore will become a less attractive manufacturing site," Yeong told Bloomberg. GES is planning to start a new plant in China by the end of next year.
When the China facility starts operations, GES may consider trimming some of its 800 Singapore workers. "Our manufacturing presence in Singapore will be reduced," Yeong noted.
However, he stressed that "Singapore is still a very good base for manufacturing high-value adds and complicated products."