Government does not expect proposed SPH restructuring to affect relationship: Iswaran

THE government does not expect its relationship with the Singapore Press Holdings (SPH) newsroom to change, following a proposed restructuring by SPH of its media business, Minister for Communications and Information S Iswaran said in Parliament on Monday.

Last Thursday, SPH, which publishes The Business Times, proposed a restructuring that involves a transfer of the media business to a company limited by guarantee (CLG).

This structure will allow any future profits from the media business to be reinvested into the media operations rather than be distributed to shareholders.

Mr Iswaran noted that the CLG would still have to find new sources of funding to meet the expected financial shortfalls in the news business.

"The government is willing to help fund the proposed CLG - while ensuring fiscal discipline and accountability - in areas like digital innovation and capability development as part of a long-term sustainable business plan," Mr Iswaran said.

He noted that there is already a similar financing model with Mediacorp, which has been working well.

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Mr Iswaran said a high-quality and trusted national media, with "an instinctive understanding of our national interests and constraints, is essential to Singapore", and the government has aimed to develop and sustain such a media industry throughout Singapore's history.

"Although the business and financing model will change, the government does not intend nor expect this to affect the relationship between (the Ministry of Communications and Information) and the SPH newsroom," Mr Iswaran said.

He added that the government is "mindful that our local news media must remain credible institutions that are trusted by Singaporeans, and that it must remain the responsibility of editors and journalists in SPH Media to report news and diverse opinions objectively, and from a Singaporean point of view".

READ MORE:

• Khaw Boon Wan to be chairman of SPH Media CLG, management shareholders to be founding members
• Singapore cannot afford 'convulsions and closures' in media landscape: S Iswaran
• SPH to transfer media business to not-for-profit entity
• SPH deal aims to improve asset values, ease shareholder pressure off media unit
• The SPH Journey: A timeline of key events since SGX listing
• SPH restructuring: 6 other news outlets under media trusts and foundations