Gov Willing to Provide Funding to SPH New Media Entity & Supports The Proposal

Yesterday (6 May), Singapore Press Holdings (SPH) made a quite unexpected announcement.

The media company said it will be restructuring its media business into a non-profit entity that supports “quality journalism”.

They cited a drop in revenue due to a decline in print media as the main reason for their major restructuring.

Ah Hock: Eh, but if you’re losing money why would you become a non-profit entity?

Good question, Ah Hock. See, one of the advantages of being a non-profit entity is that you can turn to public and private sources, as well as the government, for funding.

And it seems the newly-formed entity will have no trouble getting that financial support.

Gov Willing to Provide Funding to SPH New Media Entity & Supports The Proposal

There’s some good news for SPH Media – the new company which will take over SPH’s media businesses.

The Ministry of Communications and Information (MCI) said it supports SPH’s restructuring proposal and will provide funding for the new non-profit entity.

The ministry added that Mr S Iswaran, Minister for Communications and Information, will deliver a ministerial statement on this issue at the next Parliament sitting.

In response to the news, Mr Iswaran said that the government supports “high quality, credible journalism in our local news media” and that a respected news outlet is critical to Singapore’s national interest.

“They must continue to be trusted by Singaporeans as a reliable and objective source of news, reporting on domestic and overseas events, as well as on the diversity of views that Singaporeans hold,” he said.

The minister said the government agrees with SPH’s assertion that the current media business model under a listed company structure is not feasible.

With government funding, SPH Media can “adapt and thrive in the digital era while maintaining the high professional standards we expect and value.”

This way, it can continue to play a key role in Singapore’s media scene, he added.

How It’ll Work

Under the major restructuring, SPH Media will eventually be transferred to a newly-formed public company for a nominal sum.

This firm will be a company limited by guarantee (CLG), which is usually set up by non-profit organisations, like companies promoting the arts.

Local organisations with a similar operational model include the Esplanade and The Arts House.

All of SPH’s media-related businesses, including magazines, books, and newspapers, as well as relevant subsidiaries, related intellectual property, and information technology assets, will be transferred to the new entity.

The restructuring is expected to be completed by October, subject to shareholders’ approval.

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