GOVERNMENT-LINKED Malaysian Institute of Translation & Books (ITBM) will scale down operations to ensure that it can keep functioning, axing about half of its more than 100 workforce, sources said.

Staff of the GLC were informed about a month ago that about 50% of ITBM’s 116 employees will be laid off.

The company also lacks the financial means to offer staff voluntary separation scheme (VSS) and will only give one month’s salary as compensation.

“After Hari Raya Haji, the management had a meeting with all the employees. Many understood the hardship and the situation that ITBM is going through.

“We were also given services such as counselling, Socso insurance and talks on other job opportunities,” said a worker who was with ITBM for 10 years.

“We hope the government can help out with a higher severance package. The VSS will help tide us over while we look for other jobs,” said another staff member.

Affected workers will receive assistance from other government agencies, including Socso for insurance, and the Labour Department for new job placements, sources told The Malaysian Insight.

ITBM is saddled with debts of RM9.5 million.

A subsidiary of the Ministry of Finance, it is managed by the Education Ministry and is now undergoing a rationalisation exercise.

While its core function is to translate books and promote local authors, it used to manage the now-defunct Kedai Buku 1Malaysia (KB1M) bookstore chain, which was the brainchild of former prime minister Najib Razak.

Managing KB1M, which closed in 2017, landed ITBM in debts amounting to RM3 million, The Malaysian Insight reported previously.

ITBM general manager Sakri Abdullah confirmed that the retrenchment process could take place at any time.

“The actual percentage of cutbacks has not been determined because we have been reviewing ITBM’s operational requirements for the past five to six months,” he told The Malaysian Insight.

“We do not want to waste our talents, but 50% could be retrenched.

“It is likely that the board of directors will meet with the MOF in the near future and action will be taken as soon as the ministry responds,” said Sakri.

He said under the rationalisation exercise, ITBM has been redirected to its original function of translating books.

Despite the unhappy news for staff, Sakri said the management has made every effort to help ensure a future for those who will be let go.

“Many early steps have been taken, including calling on Socso, JobsMalaysia and the Credit Counselling and Debt Management Agency (AKPK).”

It is understood that the monthly operational cost of ITBM is RM500,000.

ITBM was formerly known as the National Institution of Translation of Malaysia (ITNM) which was established on September 14, 1993. – November 13, 2019.