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Utusan M’sia closes shop
Published on: Thursday, October 10, 2019
By: Bernama

KUALA LUMPUR: Utusan Malaysia, the nation’s oldest Malay language daily, will officially cease operations Wednesday, after a prolonged financial crisis that saw its workers protest it over unpaid wages.

Its publisher, Utusan Melayu Bhd, sent out a circular to inform employees that its board of directors approved on October 7 the creditors’ voluntary liquidation and appointed UHY Advisory KL as its interim liquidator.

Malay Mail obtained a copy of the circular from an employee of the newspaper.

“The company had tried to sell the group and company’s assets for funding and to obtain sufficient cash flow.

“However, the daily distribution of Utusan Malaysia and Kosmo! continued dwindling and the failure to hit the RM4 million monthly advertising revenue placed Utusan’s cash flow in a critical state.

“Therefore, the company will cease operations effective Wednesday, October 9, 2019,” the circular said.

Meanwhile,  workers who are being retrenched under the law can seek assistance from the Employment Insurance System (SIP) under the Social Security Organisation (Socso). 

Human Resource Minister, M. Kula Segaran said SIP acted as social security aimed at helping workers who lost their jobs by providing assistance to them. 

“Under the SIP,  for six months (after being dismissed), they (workers) will be given some payments of salary. 

“During that time, SIP will also help look for alternative employment. It will also get employers to interview these people,” he told a press conference at the Parliament lobby, here. 

In a statement, Utusan said it would dispose of 70 per cent of its equity interest in its wholly-owned subsidiary, Dilof Sdn Bhd to Aurora Mulia Sdn Bhd.

Meanwhile, Kula Segaran suggested that the Utusan management reconsider its decision to cease operations.

He said the newspaper company should look into alternative solutions as the decision would impact the livelihood of its employees. 

“I hope the management of Utusan will reconsider (to cease operations), maybe some other buyers can take over the company,” he added,.

Dilof is the permit holder for the publication of two Malay language newspapers, namely Utusan Malaysia and Kosmo. – Bernama 

 



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