The Malaysian Chinese media group which oversees China Press, Sin Chew Daily and Nanyang Siang Pau, among other titles, may be reducing its workforce by up to 44 per cent from 1,800 staff to 1,000 over a period of up to five years, Malaysian media The New Straits Times reported.

The staff reduction is part of the restructuring of Media Chinese International's internal team.

The media group's Chief Executive Officer, Francis Tiong, added that the reduction will follow the application of Artificial Intelligence (AI) across all "units of operation".

He was quoted as saying:

"With internal structural and reorganisation, the merger or consolidation of Sinchew and Nanyang group, closure of Johor and Penang (printing) 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."

Malaysian bank: Media group looking at using AI to narrate news content, improve efficiency

News of Media Chinese International's cut to its workforce was first announced by Malaysian bank Kenanga Investment Bank in a research note, Malaysian media reported.

According to the note, the media group is exploring the integration of AI to streamline its operations, such as generating videos and rendering human digital human presenters to narrate news.

The firm has since started training its staff to equip them with the "necessary tools" for using AI.

Kenanga added that based on these "efficiency gains" offered by AI, the media group has estimated that at least 30 per cent of its staff could be laid off within two years following the adoption of AI.

Kenanga also said the media group's could be reduced by up to 44 per cent as part of its restructuring efforts.

The bank noted that manpower is the biggest cost factor for the media group, accounting for 50 per cent of costs, followed by the printing of news at 20 per cent.

In addition, should the publishing costs increase, Media Chinese International may close its printing plants in Johor and Penang and centralise its operations at its Petaling Jaya plant.

Following Malaysian media reports on the bank's research note, Media Chinese International said the plan to reduce its workforce by 44 per cent is still in the preliminary stage and not an immediate move.

Company reported its largest net loss for the financial year ending on Mar. 31, 2024

According to The Malay Mail, Media Chinese International reported a net loss of RM61 million (S$17.5 million), the largest since 1998 for the financial year ending on Mar. 31, 2024 (FY2023/24).

In comparison, it only reported a net loss of RM1.16 million (S$333,500) for the previous financial year, according to The New Straits Times.

The company had reportedly experienced a drop in its advertising income as a result of a decline in digital traffic to its websites.

This decline was due to changes in Facebook's news feed algorithm which led to fewer readers being directed to the media group's sites.

Kenanga noted that Media Chinese International is "optimistic" about improving its financial results after FY2023/24 however as the company is hiking prices in the fourth quarter of 2024 for its key publications and improved profits for its travel publications, among other things.

Top left photo via Sin Chew Daily News/FB, right photo via China Press/FB