Government-linked Malaysian Institute of Translation & Books (ITBM) is expected to scale down its operations by half after left saddled with debts of close to RM10 million, according to a news report.

Online portal The Malaysian Insight quoted ITBM general manager Sakri Abdullah as confirming that the retrenchment process involving about half of its 116 employees could take place at any time.

"The actual percentage of cutbacks has not been determined because we have been reviewing ITBM’s operational requirements for the past five to six months.

“We do not want to waste our talents, but 50 percent could be retrenched," Sakri was quoted as saying.

He also reportedly indicated that the company's board would meet with Finance Ministry officials soon to discuss further actions.

"It is likely that the board of directors will meet with the MOF in the near future and action will be taken as soon as the ministry responds," he said.

According to the report, Sakri said that under the rationalisation exercise, ITBM has been redirected to its original function of translating books.

This is after it had also been tasked to manage the Kedai Buku 1Malaysia (KB1M) bookstore chain, which closed down in 2017, and reportedly raked up debts of some RM3 million.

The Malaysian Insight also quoted several ITBM staff who said they had been informed of the retrenchment exercise.

According to the report, the affected staff will only be compensated with one month's salary as the company lacked the financial means to offer a voluntary separation scheme.

"After Hari Raya Haji, the management had a meeting with all the employees. Many understood the hardship and the situation that ITBM is going through.

"We were also given services such as counselling, Socso insurance and talks on other job opportunities," said a worker who has been with ITBM for 10 years.

Last month, ITBM was named among 80 entities and individuals which were issued compound notices by the MACC in a bid to recover illicit funds allegedly stemming from 1MDB.

The agency at the time maintained its innocence and explained that their dealings with the office of the former prime minister were above board.

This was in relation to two book printing deals amounting to RM996,000 struck by ITBM with the Prime Minister’s Office in 2011.

ITBM is a wholly-owned subsidiary of Minister of Finance Incorporated and staffed by Education Ministry personnel.

It was previously known as the Malaysian Translation Institute.