exclusive

Top-selling Chinese-language daily Sin Chew Jit Poh is planning to buy a stake in Nanyang Press, which publishes two rival newspapers, sources told malaysiakini today.

While Star Publications, controlled by MCA's investment arm Huaren Holdings, has confirmed its intention to takeover Nanyang Press, it appears that Sin Chew Jit Poh 's publisher, Pemandangan Sinar, is also eyeing a minority stake in the newspaper company.

Media watchers have expressed fears that both deals would result in parties having similar interests having a complete monopoly of all four major Chinese-language daily newspapers in the country.

In addition to publishing Sin Chew Jit Poh - the top-selling Chinese daily with a circulation of 289,514 according to 1999 figures - Pemandangan Sinar also publishes Guang Ming Daily , which has a circulation of 100,475.

Nanyang Press publishes the business-orientated daily Nanyang Siang Pau which had a circulation of 177,824 in 1999, while its sister paper the China Press enjoys a circulation of 204,225.

According to the sources, Pemandangan Sinar is likely to acquire an18 percent stake from the 70 percent equity in Nanyang Press held by tycoon Quek Leng Chan's Hume Industries.

Pemandangan Sinar is controlled by Sarawak timber tycoon Tiong Hiew King.

"Star Publications is expected to take 52 percent while Sin Chew will have the remaining 18 percent," said a source.

The deal, said the sources, is expected to cost Sin Chew RM60 million.

Combined forces

China Press today reported that the sources close to MCA revealed that Star Publications and Pemandangan Sinar would combine forces in the proposed takeover of Nanyang Press.

The involvement of Sin Chew in the Nanyang Press takeover bid will see an emerging monopoly of Chinese dailies in the country, the sources pointed out.

"The Chinese press industry will be under 'one political group', so to speak, although business-wise they will appear to be two separate groups," said a source.

He was referring to MCA, the second biggest partner in the ruling Barisan Nasional coalition, which also controls the top-selling English-language daily The Star .

"If both Sin Chew and Nanyang become politically-motivated papers, they will turn out to be not unlike Utusan Malaysia and Berita Harian ," said the source.

It is also learnt that MCA plans to tap pro-MCA personnel in Sin Chew to help manage its new acquisitions in Nanyang Press.

Deal to be signed 'soon'

Sources also said the deal would be sealed "very soon" as MCA is "worried that strong public opinion against the takeover may derail the agreement".

"At the MCA presidential council meeting, one of the members stated that they had to takeover Nanyang Press as soon as possible before strong criticism emerges from the Chinese community," said a source.

(Yesterday, an emergency MCA presidential council endorsed Star Publications' takeover of Nanyang Press.)

"They are also concerned that if MCA fails to takeover Nanyang, Gerakan would step in," the source added.

It is believed that a preliminary agreement will be signed before June 3 as MCA leader Dr Ling Liong Sik plans to leave on an overseas trip then.

Last Saturday, Singapore's Chinese daily Lianhe Zaobao reported that Gerakan, another Chinese-based BN coalition partner, was interested in taking a 30 percent share in Nanyang Press.

However, sources said Kuala Lumpur today it was unlikely Gerakan would proceed with the acquisition as the party coffers would not allow it.