SHAH ALAM: UiTM Holdings Sdn Bhd has confirmed it will cease all services and hospitality operations at Intekma Resort and Convention Centre in Section 7, here.
It said the cessation was because UiTM Hospitality Management and Services Sdn Bhd (UHMSSB), which operates Intekma, had been experiencing operational and financial difficulties over the past few years.
"It is resulting mainly from Intekma's ageing facilities and against the backdrop of a highly competitive business environment in the hospitality industry, especially in the Shah Alam area.
"The current assets and facilities will be converted into students’ accommodation for UiTM Private Education Sdn Bhd," the management said in a statement today.
It added that a majority of Intekma employees will be offered the Staff Separation Scheme (SSS), where the cost of the exercise will be derived based on the Employment Act 1955.
"Most employees of Intekma will be made redundant. A few will be retained to fill up critical positions that have been identified while some will be redeployed or reassigned to other vacancies within the group.
"In order to help the outgoing staff, the management will work closely with them to provide counselling and assistance in seeking for placement opportunities elsewhere, wherever possible."
The statement, however, did not indicate the number of staff affected by the cessation.
The management said Intekma is not as a training facility for UiTM (Universiti Teknologi MARA) students and the cessation will not affect them.
Intekma, it said, is a company duly incorporated under the Companies Act and operate as a full commercial set-up.
"UiTM operates its own hospitality chain under the brand of Hotel UiTM that among others serves as the training facility for UiTM students and managed by the Faculty of Hotel and Tourism Management. As such, the closure of Intekma does not affect students’ training."
On Saturday, New Straits Times Press reported the fate of Intekma, a Shah Alam iconic landmark, which will cease its operation by March after 30 years in the hotel and hospitality industry.
An internal letter, circulated to Intekma's staff, stated that the process would take place in two phases; the first on Feb 28 and the second on March 31.
The letter also said that from Jan 11 to March 31, all current operations will continue in accordance to the phases.
However, during the period, no room reservations or events will be accepted and all operations involving food and beverage sourced externally will be terminated.