Media Chinese to lay off 800 staff, says Kenanga
Media Chinese to lay off 800 staff, says Kenanga
PETALING JAYA: Media Chinese International Ltd may lay off at least 44% of its staff within two years after it integrates artificial intelligence (AI) into its operation, according to Kenanga Investment Bank (Kenanga IB).
In its report, the research house said the company is exploring AI integration to streamline operations and hopes to monetise its intellectual property or news content in the future.
“On the back of this, Media Chinese has initiated internal training for its staff to equip them with the necessary skills to effectively utilise AI tools,” it said.
Media Chinese, which publishes titles such as China Press, Sin Chew Daily and Nanyang Siang Pau, is collaborating with local publishers through the Malaysian Newspapers Publishing Association to “collectively approach and engage multinational AI companies”, Kenanga said.
Shares in Media Chinese have declined 3.7% in 2024, continuing a trend of sharp drops in recent years as the company struggled with dwindling earnings and losses.
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The company reported its largest net loss since 1998, amounting to RM61 million for the financial year ended March 31, 2024.
Kenanga also said Media Chinese may reduce its workforce by up to 44% as part of its ongoing restructuring efforts.
“Media Chinese estimates that its workforce may potentially be reduced from 1,800 to around 1,000 employees in future,” it said.
“To recap, manpower comprises the most significant cost driver for Media Chinese, accounting for about 50% of its costs, followed by newsprint at around 20%.”
If publishing costs increase, Kenanga IB said Media Chinese may close its printing plants in Johor and Penang and centralise operations at its plant in Petaling Jaya.
However, the research house said Media Chinese is optimistic about improving its financial results after experiencing losses in FY23-24. It maintained an “underperform” call for Media Chinese with a target price of RM0.11.
Media Chinese to lay off 800 staff, says Kenanga
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