PETALING JAYA: Media Chinese International Ltd are planning to gradually cut down its workforce to around 1,000 employees over a term of up to five years after the Sinchew Daily and Nanyang Siang Pau merger, as confirmed by group chief executive officer Francis Tiong.
The media company is looking to restructure its internal team, according to the New Straits Times.
However, according to Kenanga research in its recent note, it was found that the plan to let go as much as 44% or 1,000 from 1,800 staff is still at a “preliminary stage and not an immediate move,” as quoted.
A report from Business Times also quoted the group’s CEO, Francis, who said “with internal structural and reorganisation, the merger or consolidation of Sinchew and Nanyang group, closure of Johor and Penang plants (provided the cost-saving measures are justified but not at the moment) and the application of AI across all units of operations,” as quoted, employees can be reduced to 1,000 over a period of around five years.
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Media Chinese had recorded a net loss at RM61 million in the financial year 2024 (FY2024), due to high operational costs, compared to 2023 which recorded a net loss of RM1.16 million.
Kenanga Research verified in its note that the Main Market-listed company’s manpower took up the most cost, amounting to 50%, along with newsprint at 20%.
Kenanga Research also noted that Media Chinese might close down its printing plants in Johor and Penang if unit publishing costs increase further, thereby the firm possibly centralising print operations in Petaling Jaya, Selangor.
The firm, which publishes China Press, Sin Chew Daily and Nanyang Siang Pau, added its plans to utilise Artifical Intelligence (AI) to deliver the news more efficiently on multiple platforms.
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The company is currently evaluating AI tools that “streamline content distribution,” as quoted, which can reportedly generate accompanying videos and render digital human news presenters.
Kenanga Research added that Media Chinese Ltd estimated that 30% of its workforce could be downsized within two years after the integration of AI in its operations.
The firm has also started to train internal staff to effectively make use of AI tools, equipping them with the necessary skills to publish news quickly and efficiently.
