Kuala Lumpur - Japanese wireless toy manufacturing company Nikko Electronics shut down its operations in Malaysia's northern Penang state on Tuesday, leaving some 950 employees jobless, a state spokesman said.

The company had shut down without giving any of its employees the required one months' notice, chairman of the state-owned investment body InvestPenang, Lee Kah Choon, was quoted as saying by the Star online news portal.

"We are looking into measures to ensure the retrenched workers' welfare," Lee told reporters in the state.

He said the company, which is listed on the local stock exchange, shut down due to dwindling market demand and escalating production costs, adding that the state would try to hold talks with the company's management team.

"We want to meet with them to resolve issues concerning the workers' wages and benefits; to learn of their plans for the factory's land and facilities; and to get the necessary details to help the retrenched workers get new jobs," he said.

Penang is home to electronic giants from the United States, Germany and Japan including Intel, Motorola, Dell and Sony. (dpa)