Utusan-NSTP Merger - Rafidah Gives A Thumbs Down.

The merits of the Utusan Melayu (Malaysia) Berhad-The New Straits Times Press (M) Berhad (NSTP) merger needs to be appraised from various angles including its business potential, said Wanita Umno chief Datuk Seri Rafidah Aziz.

She said that the management of both companies ought to look into whether the merger would generate better business growth than under their present structures.

For instance, she warned that it (merger) could result in them suffering losses if advertisers lost interest in taking up advertisement space in the newspapers once the companies were merged compared to now when they were competing for advertising revenue.

"From the business aspect, I feel that maybe they will lose advertising revenue. If it is aimed at forging collaboration then both media organisations need not necessarily merge," she told reporters before opening a Kemas kindergarten in Kampung Ara Panjang, Manong near here today.

Rafidah, who is also International Trade and Industry Minister, had been asked to comment on the merger between the two media giants, which had generated a lot of debate, including in Parliament and the Senate. "I feel that even without a merger they can still forge a strategic alliance... for example in our quest to strengthen Malay participation in the economy.

Both (companies) can cooperate and map out similar strategies to nurture the mindset of the Malays to have a culture of excellence. "If we want the Malays to generate more business, it can be done together, not necessarily through one company," she said.

Rafidah said that the management of both companies should also seek the views of Utusan Malaysia, Berita Harian and New Straits Times employees. "I believe they have each have their own culture. So its not proper that we do it hastily... let's discuss with them (employees) further on it," she added. -- BERNAMA
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