Utusan expects to reopen in April


SM Amin

Utusan Melayu Bhd, the listed company which owned Utusan Malaysia and Kosmo!, ceased operating on September 9, 2019 but former employees have yet to be compensated. – The Malaysian Insight file pic, January 27, 2020.

UTUSAN Malaysia, the country’s oldest Malay daily, which was shut down 100 days ago, is now expected to begin operations again in April, said sources from the top management.

Sources told The Malaysian Insight that some former Utusan Malaysia editors will be called in next month for the purpose of restructuring the company’s operations in a new environment.

“This February, some former editors will be called in to set up new operations, including hiring staff. The team is not as big as before, so the way things work has to change.

“If all goes well, the first newspaper will roll out in April,” a source told The Malaysian Insight.

Last year, Utusan Malaysia and sister publication Kosmo! shut down and terminated about 800 employees.

The decision was taken as the company, Utusan Melayu Bhd, could no longer shoulder the burden of its debts accumulated over the years, estimated at between RM240 million and RM340 million.

On October 9, the board of directors decided to cease operations after approving the proposed creditors’ voluntary liquidation two days earlier.

Its executive chairman, Abd Aziz Sheikh Fadzir, said the move was necessary as the company was no longer in a position to continue doing business.

Aziz said the new publication of Utusan Malaysia will be continued by a company associated with billionaire Syed Mokhtar Albukhary’s Aurora Mulia after it bought a 70% stake in Dilof Sdn Bhd, the holding company with Utusan’s printing licence.

In relation to hiring staff for the new venture, another source said some of these opportunities would be offered to former Utusan Malaysia employees while others would be open to the public.

“So far, no offer has been made. The number of staff they are going to hire is not huge. We have not identified the exact number but it may be around 100,” said an editorial source.

It has been more than four months since the closure of Utusan Malaysia and its former employees are still waiting for their outstanding salaries, claims, and compensation.

The workers told The Malaysian Insight they have not heard anything from their former employer or liquidators since the company ceased operations on September 9 last year.

Some of the 800 laid-off employees have found new jobs in the gig economy, such as with Grab and Foodpanda. Others have embarked on their own businesses. But many remain unemployed and in dire need of the payments promised by their former company.

They have heard rumours of the publication returning to the stands under a new management but these remain just that, rumours.

Mohd Taufek Razak, the former chairman of National Union of Journalists-Utusan Melayu, is among those still without a job.

He said there has been no update from the liquidators after a briefing on November 6 last year.

Utusan has struggled with severe financial difficulties over the past few years. Its woes intensified after Barisan Nasional lost the last general election.

The company tried to slash staff numbers and sell assets to increase cash flow in 2018.

Utusan started out in Singapore in 1939 and moved to Kuala Lumpur in 1959.

Two years later, it was owned by BN lynchpin Umno, until after the 14th general election in May 2018 that saw the pact ousted from power. – January 27, 2020.



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