Featured image from Malay Mail
Listen to BFM for Utusan Struggles
For those who have been following the news related to the Umno-linked media company, Utusan Melayu (M) Berhad, might already know its financial struggles which lead them to take some drastic measures to keep the company afloat.
The company had a strong backing from the previous government in the past 2 years but with the loss of Umno-led Barisan Nasional on GE 14, things continue to spiral downwards.
In a report by The Star, its deputy minister Datuk Mahfuz Omar said overall, 15,903 people were dismissed from their jobs during the period this year, while 35,097 people were terminated from their jobs last year.
Desperate times call for desperate measures. To cover for its staff voluntary separation scheme (VSS) as well as to raise funds for the working capital requirements, Utusan is selling their assets.
This includes its five-storey corner shop office in Seksyen 14, Petaling Jaya, which the company has agreed to sell at RM7 million to Eden Resources Sdn. Bhd. The property was purchased in December 1995 at RM4.82 million.
Another disposal is going to involve the company’s industrial leasehold land in Jalan Tiga, Kuala Lumpur. The Star reported that Utusan has entered a conditional sale and purchase agreement with Strong Skyhutch Sdn Bhd, to sell the 4,715 sq.m. asset for RM18 million. The original cost of investment in the property, incurred in 1979, was RM813,191.
The disposal of the land is expected to be completed by June 2019.
The financial challenges faced by the company lead to its classification as a Practice Note 17 (PN17) company by Bursa Malaysia, denoting its financials were inadequate as a listed entity.