IN a strategic move following the merger of Sin Chew Daily and Nanyang Siang Pau, a prominent Chinese-language media company Media Chinese International Ltd has announced plans to gradually reduce its workforce over a medium-term period of up to five years.
Group CEO Francis Tiong revealed that the company aims to streamline operations and increase efficiency through internal restructuring.
The company, which publishes notable titles such as China Press, Sin Chew and Nanyang, is set to undergo significant changes in its internal team structure.
Despite recent reports suggesting a substantial reduction of its workforce by as much as 44%, bringing the total number of employees down to about 1,000 from 1,800, Tiong clarified that these measures are still in preliminary stages and not immediate.
“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, we can reduce our staff to 1,000 over a period of two, three or even five years,” Business Times quoted him as saying.
Moreover, Media Chinese reported a net loss of RM61 mil in the financial year 2024, compared to a net loss of RM1.16 mil in the previous year, primarily attributed to high operating costs.
According to Kenanga Research, manpower represents the most significant cost driver for the company, accounting for 50% of its expenses, followed by newsprint at 20%.
“On top of that, if unit publishing costs increase further in the future, Media Chinese may shutter its printing plants in Johor and Penang. Thereafter, it would centralise print operations at its plant in Petaling Jaya, Selangor,” it said.
The company is exploring the potential of AI tools to streamline content distribution, enabling rapid publication of news articles across various digital platforms. These tools could also facilitate the creation of accompanying videos and employ digital human presenters to narrate news content.
“Based on the efficiency gains offered by AI, the company estimated that at least 30% of its staff could be laid off within two years following the adoption of AI.
“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 added. – May 31, 2024
