Poh Huat confirms 543 employees tested positive Covid-19 at Muar plants

The group has suspended the Malaysia operations from yesterday to Feb 3, 2021, or further as advised by MoH

by PRIYA VASU / source: Facebook/PohHuatGroup

POH HUAT Resources Holdings Bhd’s subsidiary, Poh Huat Furniture Industries (M) Sdn Bhd, is the latest manufacturing company to have confirmed 543 positive Covid- 19 among its employees.

In a filing to Bursa Malaysia yesterday, the company said it conducted a screening exercise that covered approximately 1,400 of its employees in all the plant premises and corporate offices in Bukit Pasir, Muar, Johor on Jan 21.

The company voluntarily underwent a Covid-19 full screening for all its employees, both foreign and local, at all its factories located in the Bukit Pasir Industrial Area as a precautionary measure to contain and prevent the spread of the Covid-19 virus among its employees and its surrounding community.

Poh Huat Furniture Industries is cooperating and working closely with the Ministry of Health (MoH) to implement mitigating steps to contain the spread of Covid-19 at the premises and safeguard the health of employees who may have been exposed to the virus.

The group has also taken an additional step to temporarily suspend the Malaysia operations from yesterday to Feb 3, 2021, or further as advised by MoH.

The group’s Vietnam operations are free from Covid-19-related incidents and remain in full operations.

“The temporary closure of Poh Huat Furniture Industries operations is expected to result in delay for the shipment of several orders to its customers in the US.

“The management is currently in discussion with the affected customers for the rescheduling of the delivery dates for these orders and expects that there will not be any adverse impact to the group,” the company noted in the filing.

Poh Huat Furniture Industries expects to be able to mitigate the delay in shipment as it has a certain amount of ready inventory to meet some of these orders and if necessary, increase production with extended shifts upon re-commencement of manufacturing activities.

“The group can divert some of its Malaysian orders to its Vietnamese subsidiary should the need arise,” it added.

The company does not expect any material impact on its financial performance other than the cost incurred for the swab test, disinfection process and daily meal allowance to foreign workers.

Barring any prolonged interruptions or closure of operations of Poh Huat Furniture Industries, the board does not expect any material adverse impact on the revenue or the earnings of the group for the financial year 2021.

In November, Top Glove Corp Bhd was ordered to shut down its factories in stages after more than 5,000 of its employees were tested positive for Covid-19.

This followed by Hartalega Holdings Bhd that reported 35 Covid-19 cases among more than 8,700 employees it tested, and Kossan Rubber Industries Bhd that announced 990 Covid-19 at one of its plants in Klang, Selangor, since intensive screening began on Dec 4.

Besides glovemakers, car leather upholstery maker, Pecca Group Bhd, also announced 246 of its employees tested positive for Covid-19 in a screening in December last year.

Read our earlier report

Poh Huat Resources confirms 543 employees tested positive for Covid-19