Publications under Singapore Press Holdings (SPH) may receive direct government funding after a proposed restructuring plan involving a transfer of its media business to a non-profit entity in light of its declining revenue from advertising.
Prior to this, the Singapore Government and Government-linked entities have always been supporting SPH via newspaper subscriptions and putting up advertising such as public announcement by ministries.
Following the transfer, SPH will no longer be subject to shareholder and other relevant restrictions under the Newspaper and Printing Presses Act (NPPA).
SPH in its statement today noted that it has approached MCI with a restructuring proposal to put the media business on a long-term sustainable financial footing.
“While such a model may be unfamiliar in Singapore, many news organisations overseas are operating under these funding structures. These include the Guardian in the United Kingdom that has been controlled by the Scott Trust since 1936 and the Tampa Bay Times in the United States that is owned by the non-profit Poynter Institute,” said the company.
According to SPH, Ministry of Communications and Information (MCI) has indicated support for its proposal, adding that the ministry has given its in-principle approval to lift shareholding and other relevant restrictions under the NPPA from SPH when the proposed restructuring is completed.
SPH said that it has undertaken strict cost management measures in recent years to mitigate the effect of the declining advertising revenue.
However, further cost cuts to reduce losses may impair the media business’ ability to maintain quality journalism.
“A not-for-profit structure will allow the media business to seek funding from a range of public and private sources with a shared interest in supporting quality journalism and credible information,” said SPH.
Under the proposed restructuring, the media business will gain the resources to focus on transformation efforts and quality journalism, as well as to invest in talent and new technology to strengthen its digital capabilities, the company said.
“This will ensure that the public will continue to benefit from quality information and credible news from trusted media titles and newsrooms, across different platforms and in vernacular languages,” said SPH.
SPH chairman Lee Boon Yang said — in response to queries from reporters on how the company’s media business would retain editorial independence — that its media arm aims to serve its audiences objectively, accurately and responsibly.
SPH’s goals to earn public trust and confidence will be “ported over” to the new entity, Dr Lee said.
“This is something that the company limited by guarantee will pay great attention to,” he said.
Dr Lee is a former People’s Action Party Member of Parliament for Jalan Besar GRC and held various portfolios as an officeholder, among them being Defence Minister, Manpower Minister, and the Information, Communications and the Arts Minister.
He served as the Information, Communications and the Arts Minister from 12 May 2003 to 1 Apr 2009.
SPH’s chief executive officer Ng Yat Chung stressed that SPH publications “never pander to the needs of advertisers”, and suggesting that they do is outrageous, considering how other media outlets “receive substantial funding from various sources”.
Mr Ng’s fiery response came after a barrage of follow-up questions from reporters on how titles under SPH would maintain their editorial independence with direct government funding as a possibility, following the announcement of transferring its media business to a non-profit entity in the wake of declining revenue from advertising.
Stressing that he took umbrage at such questions, Mr Ng said — while pointing at the reporters at the same press conference on Thursday — that their media outlets do not describe themselves as “bowing to the needs of advertisers in doing your job” despite where they receive their funding from.
“(At) SPH, we always have advertising, but never pander to the needs of advertisers… The fact that you dare to question (the editorial independence) of SPH titles… I don’t believe even where you come from, you concede in doing your job,” Mr Ng said. “I must call this out… Chairman (Lee Boon Yang) is a gentleman. I’m not.”
