Sin Chew Media Corporation (Sin Chew) has finally made a public admission that it holds a minor stake in the Nanyang Press, which was controversially acquired by MCA's investment arm in May 2001.

However, the company which published Sin Chew Daily said this has not resulted in conflict of interest in the running of rival daily Nanyang Siang Pau.

Sin Chew managing director Liew Chen Chuan, better known as CC Liew, told a press conference today that the company does not have any influence over Nanyang's management and editorial policy.

He likened the acquisition of shares as similar to the "interest and equity" held in other companies.

"Nanyang and Sin Chew Daily are two major newspapers that have been competing with each other professionally and in a healthy way and this will continue," he said.

However, he conceded that Sin Chew's decisions would be subject to greater public scrutiny when it becomes a public-listed company.

Liew (photo, right) said this after an Underwriting Agreement was signed in conjunction with Sin Chew's proposed listing on the Main Board of Bursa Malaysia Securities Bhd.

Sin Chew (previously Pemandangan Sinar Sdn Bhd) owns two major Chinese-language newspapers Sin Chew Daily and Guang Ming Daily, which have captured about 50 percent of the vernacular market.

In 2001, the company was rumoured to have been working with MCA in the acquisition of Nanyang Press, the publisher of Nanyang Siang Pau and China Press.

Sin Chew chairperson Tiong Hiew King, a Sarawak-based timber exporter, was said to have a vision of developing a "global Chinese media network".

This had caused major protest among the Chinese community which feared a monopoly of the newspaper market. At the time, Sin Chew had denied its involvement (right).

In January last year, Nanyang Press' annual report listed Tiong's Pemandangan Sinar Sdn Bhd and Tiong Toh Siong Holdings Sdn Bhd as the 12th and 13th -largest shareholders.

As they hold 0.30 and 0.26 percent of the shares respectively, Tiong effectively controls at least 0.56 percent of Nanyang shares.

Focus on Chinese media

Asked if Sin Chew would give up its stakes in Nanyang Press to avoid a unhealthy monopoly of the industry, Liew said: "A very good question, but I don't know what do you mean by monopoly."

To a question whether the company would increase its acquisitions later, Liew said the company is always looking for opportunities to expand.

"In a very competitive world - it is a very small world - we need to be strong, so we are always looking for opportunities," he said, but noted that the focus would be on the Chinese media.

"Sin Chew is an established company, so we have decided to go into public. For the time being , we will continue just as we are," he added.

With the listing status, Sin Chew will be making an Offer For Sale of 73,623,000 ordinary shares of 50 sen each.

Sin Chew has four subsidiaries - Guang-Ming Ribao Sdn Bhd, Sinchew-i Sdn, Mulu Press Sdn Bhd and Media Communication Sdn Bhd.

The group has five printing plants located in Petaling Jaya, Johor Baru, Penang, Kuching and Sibu, and prints more than 500,000 copies of newspapers daily.

Sin Chew Daily reportedly has a daily readership of more than 1,000,000 while Guang Ming Daily has 400,000.