SHAH ALAM, Aug 17 — The Automobile Association of Malaysia (AAM) today announced it will be downsizing its operations to meet challenges of "market situation” and "general economic slowdown”.

The announcement followed a protest outside its head office here yesterday by some of its employees who claimed they have not been paid wages since April this year.

"The current market situation has affected many business entities in Malaysia, and the general economic slowdown has also bears [sic] effect in the overall business of the Association that is self-funded entirely via its membership and its business operations,” the AAM management said in a statement.

"In order to meet these challenges, the Association has embarked on downsizing of its operation that will see unprofitable branches being closed down or relocated, as well as the disposal of its assets and properties that were acquired and the majority fully paid, many years ago,” it added.

It said that AAM will also carry out immediate rationalisation and modernisation programmes to build new business modules and business partnerships.

The programmes, it said, will be completed by end of the year.

The motoring association said this new phase it will be embarking on will result in a temporary disruption to its current services to AAM members.

Local daily theSun had reported dozens of AAM staffers demonstrating outside the head office demanding to be paid their wages.

According to the news report, no senior official was present to address the demonstrators’ concerns or to speak to the press during the protest.