Other factors cited are increased competition, poor advertising revenue and staffing difficulties’
KUALA LUMPUR: Berita Publishing has announced that it intends to exit the magazine publishing business in the wake of poor sales since the implementation of the Goods and Services Tax (GST) on April 1, reports news portal mStar Online.
Managing Director Juhaidi Yean Abdullah claims that the business was no longer viable, pointing to the fact that 28,000 of 30,000 of the copies printed recently had been returned unsold by vendors.
“Factors which have contributed to this decision are increased competition, poor advertising revenue, difficulty in maintaining staff and the ‘killer’ factor, GST,” Yean told mStar Online.
The publisher, which began in 1973 as part of the New Straits Times stable, published various titles including Malaysian Business, Jelita, Anjung Seri and Madam Chair. Yean said that many newsvendors had stopped selling its magazines after the government implemented GST because they were reluctant to upgrade their cash registers by October this year as mandated by the authorities.
The decision has cost 50 experienced employees their jobs, including several with up to 40 years’ experience in their respective fields, particularly in marketing, distribution, editorial and administration.
“Apart from paying them appropriate compensation, the company has also issued them with testimonials and assisted in securing permanent employment for them,” Yean was quoted as saying. He said the company, which will retain 10 of its staff, intends to shift its focus to contract and other forms of publishing. It is also looking to venture into consultancy services.
Source: http://www.mstar.com.my/berita/berita-semasa/2015/07/01/bpub-henti-ops-majalah/
