Kenanga Investment Bank has reported that a Chinese media group in Malaysia may lay off 44% of its staff and integrate artificial intelligence (AI) into its operations.

In a report, the research house stated that Media Chinese International Limited, the parent company of China Press, Sin Chew Daily, and Nanyang Daily, among others, will undertake this layoff as part of an ongoing restructuring, according to FMT.

The group may reduce its workforce from 1,800 to approximately 1,000 within two years.

This announcement follows Media Chinese's net loss of RM61 million for the financial year ending 31 March, the largest loss since 1998.

Media Chinese, the first dual-listed entity on the Stock Exchange of Hong Kong Limited and Bursa Malaysia Securities Berhad, has a product portfolio spanning Southeast Asia, Greater China, and North America, including newspapers, magazines, and books.

Sibu-born Tan Sri Tiong Hiew serves as the group's honorary chairman.

Kenanga Investment Bank noted that Media Chinese might collaborate with emerging AI players in China, such as Baidu and Tencent, to produce Chinese language content.

The research house added that Media Chinese is working with local publishers through the Malaysian Newspapers Publishing Association to "collectively approach and engage multinational AI companies," as reported by The Edge.

A similar trend has been observed in the West, where OpenAI has partnered with news outlets to train its AI model and feature news on its platform. Last week, OpenAI signed a five-year agreement with News Corp, the parent company of the Wall Street Journal and the New York Post, to access both current and archived content. The UK-based Financial Times has also signed a deal with OpenAI to license its content for AI model development, as reported by The Guardian.

Media Chinese's plan to lay off employees is not unprecedented in Malaysia. Last year, Astro Malaysia Holdings implemented a voluntary separation scheme to reduce operating expenses, and Media Prima and Star Media Group have previously adopted similar measures.