Asia Inc has been thrown another lifeline and the struggling
regional business magazine is now hopeful that it is finally on the road
to financial stability.
The lifeline comes in the form of Mr Timothy Ong, a member of one of
Brunei's oldest business families and the chairman of the APEC Business
Advisory Council.
Mr Ong - whose business interests include the National Insurance Company
of Brunei - has bought a majority stake in the company and almost
immediately announced wide-ranging plans to try to reverse Asia Inc's
flagging fortunes.
"Mr Ong represents financial stability and that should send a clear
signal to advertisers and readers that we are here for the long-haul,"
Asia Inc managing editor Peter Comparelli told MEDIA.
The magazine, which has never made money since launching in 1992, is
suspending publication for three months until April to give it time for
a restructuring.
However, Mr Ong denied that this would be damaging for the magazine.
"Advertisers know that while Asia Inc has always been a
highly-successful editorial product, it has gone through some tough
times financially.
"I will be bringing long-term financial stability and we are taking this
respite to rebuild and to ensure that our strategy is absolutely
right."
Asia Inc has been on a roller-coaster ride since it was launched about
eight years ago by Thai entrepreneur Sondhi Limthongkul. In 1997, senior
staff organised a leveraged buyout following the collapse of Mr Sondhi's
media empire as Asia-Pacific plunged into recession.
A year later, a majority stake was sold to Datuk Keramat Holdings Bhd
and its affiliate George Town Holdings Bhd, however, the stake was once
again put up for sale following a dispute between the two major
partners.
Under the restructuring, the editorial and production departments will
relocate to Bangkok, while the advertising sales and circulation teams
remain in Hong Kong.
Mr Comparelli said moving editorial and production to Thailand was aimed
at bringing costs down.
"We have brought down costs significantly over the past few years,
however, expenses are still too high vis-a-vis revenue."
The restructuring will also see the development of a revamped
website.
Said Mr Comparelli: "We were the first Asian business magazine to launch
a website but after Mr Sondhi's empire crashed, we didn't have the
resources to continue upgrading it."
