KUALA LUMPUR: Media Chinese International Ltd will gradually reduce its workforce to about 1,000 over a medium-term of up to five years only after the merger of Sinchew and Nanyang, according to group chief executive officer Francis Tiong.
The Chinese-language media company, which publishes China Press, Sin Chew Daily and Nanyang Siang Pau, among others, is restructuring its internal team.
Hence, the plan to reduce its workforce by as much as 44 per cent to about 1,000 from 1,800, as stated by Kenanga Research in its note yesterday, is still at a preliminary stage and not an immediate move, it 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, we can reduce our staff to 1,000 over a period of two, three or even five years," he told Business Times today.
The Main Market-listed company recorded a net loss at RM61 million in the financial year 2024 (FY24) compared to a net loss of RM1.16 million a year earlier due to high operating costs.
In its research note, Kenanga Research said manpower comprised the most significant cost driver for Media Chinese, accounting 50 per cent of costs, followed by newsprint at 20 per cent.
"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 firm also noted that Media Chinese is evaluating AI tools that streamline content distribution, enabling the publication of news articles on multiple digital platforms within minutes in a single click.
Concurrently, these AI tools can also generate accompanying videos, and render digital human presenters to narrate news content.
"Based on the efficiency gains offered by AI, the company estimated that at least 30 per cent 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.