The shareholders of the company cited in a proposed takeover bid of two Chinese dailies by an MCA-controlled company should reject the proposal in order to protect the independence of the newspapers, a Chinese youth leader said today.

Furthermore, the shareholders may lose money because the acquisition may result in a readership decline and subsequently a profit loss, said Chew Chong Sin, chairman of the Kuala Lumpur and Selangor Youth Graduates Society.

Recently, it was reported that MCA, through Star Publications Sdn Bhd, is seeking to acquire Nanyang Press which publishes two major dailies - the Nanyang Siang Pau and the China Press . Star Publications publishes the English daily The Star .

When news of the proposed takeover bid hit town, many voiced their disapproval and claimed that MCA was simply attempting to expand its propaganda machinery since the party was said to be suffering a popularity crisis.

However, the party's president and Transport Minister Ling Liong Sik, was reported to have termed the bid as a "business deal".

But Chew disagrees, claiming the proposed takeover should not be viewed as merely being a business deal and would not have progressed without MCA's order or agreement.

"Hence we urge MCA treasurer, William Chek to clarify to the Chinese community whether the party had planned the deal," said Chew at a press conference by 24 Chinese youth groups at the Selangor Chinese Assembly Hall in Kuala Lumpur.

Lose credibility

Chew claimed that control of the Chinese media has intensified since the day MCA was given a deputy minister's post in the Home Affairs Ministry and "this is not a coincidence".

"When the press works for political parties, it will lose readership and credibility and finally hampering the interests of the shareholders," he said, adding that the Chinese community must see the deal more realistically.

"Any political party which controls two major Chinese dailies may cause the community to be misinformed and misled by their politically-slanted reporting," he explained.

Chew said if the already "closely-monitored" Chinese dailies were run by a political party, the Chinese community's grievances such as the Vision School issue, the SJK (C) Damansara school controversy and others would not be highlighted.

The Edge business weekly, reported this week that Nanyang Press was going to be taken over by the MCA-influenced Star Publications.

Star is 44 percent owned by Huaren Holdings, which is controlled by the MCA while Nanyang Press is 70 percent owned by Hume Industries, which is a member of the Hong Leong Group, controlled by tycoon Quek Leng Chan.

Taming effect

Meanwhile, the president of the Selangor Chinese Assembly Hall's Youth Section, Jean Lee, said they are worried that the takeover would "tame the ferocity of the dailies's reporting".

Last year, both dailies were warned by the Home Affairs Ministry on several occasions over their reports which were "seen to be courageous," she said.

MCA must not attempt to control other media besides The Star whereas Hume Industries should not sell its shares to any company affiliated to political parties, said Lee.

"Hume must recognise its moral duty to preserve the freedom of the press and expression in Malaysia," she added.

Lee called on all individuals and groups, whether they read Mandarin or not, to register their objections to the possible takeover of the Chinese dailies.

"We Malaysians simply have too little press freedom to take for granted," she said.