KUALA LUMPUR (May 15): Star Media Group Bhd will only look into voluntary separation scheme (VSS) as a last option to its cost-cutting measures as the MCA-controlled media group intends to continue its cost reduction efforts seen last year, according to its chairman Datuk Fu Ah Kiow.

"VSS will be our last resort. We will consider (it) only if necessary. The board will have to make a final decision… we have to look at the numbers and the recommendation from the management to the board," Fu told theedgemarkets.com after the group's annual general meeting today.

Fu said the cost reduction plans are being discussed among the management and board level and an announcement will be made when a decision is made.

He added that the cost reduction efforts have been ongoing since last year from a lot of different aspects such as operating costs, and that staff costs consist of the largest chunk of it. According to him, VSS was taken last year and will only be considered as a last resort in this financial year ending Dec 31, 2018 (FY18).

Fu said that as a responsible company, measures need to be taken to reduce costs due to the drop in revenue. He pointed out that a key component to bring in better profit for the media's shareholders include cost-cutting aside from growing its revenue.

"There is a series of cost cutting measures being implemented. Some of the measures include printing plant operation — initiate some management changes that will help to cut down the costs," Fu added.

On Star's future revenue growth, Fu said focus will be on the digital space, which is Star Online, and the group will revamp its content and improve it, and grow the revenue of its digital assets.

The radio segment also is turning in positive results now after some restructuring was seen last year, while Dimsum is expected to improve revenue although it might not be added to the bottomline immediately. Fu also added that efforts have been intensified in events and exhibitions to bring in more profit.

Fu also denied that there was interference from the largest shareholder, MCA, which has a 42.46% stake in the group, and that it was merely the perception of others.

"As far as management and editorial, the shareholders (MCA) did not interfere," he said.

He is also hoping that the court decision between Star Media and JAKS Resources Bhd would be resolved soon and that following the holiday on May 11, the date for the court's decision has been postponed and will only be announced on a later date.

As of writing, Star's share price slipped lower by 0.97% or 1 sen to RM1.02 with about 386,800 shares traded, giving it a market capitalisation of RM760 million.