SINGAPORE - The Republic's media landscape can "ill-afford" convulsions and closures seen around the world without risking a consequential loss of diversity and choice, said Minister for Communications and Information S. Iswaran on Monday (May 10).
He was making a ministerial statement in Parliament on a proposal by Singapore Press Holdings (SPH) to restructure its media business to a not-for-profit entity.
The proposal, announced last week, was backed by the Government, which stated it was prepared to provide funding support for the entity.
Noting that Singapore's small local market comprises just two main news media organisations - SPH and Mediacorp - Mr Iswaran said that SPH must, at this critical juncture, chart its own course to revise - and if necessary, reinvent - its business model for the digital age.
"Most publications are now running deficits, and many newsrooms are shrinking, even closing," he noted.
Mr Iswaran pointed out that in South-east Asia, well-known newspapers have changed hands, restructured or shut down in recent years.
The Jakarta Globe, for example, ceased printing and went fully online in 2015; and the Philippine Star had a majority stake acquired by the telecommunications group PLDT.
Elsewhere, more than a quarter of American newspapers have disappeared in the last 15 years, reducing the number of newsroom jobs by half. And in the United Kingdom, more than half the country is no longer served by local newspapers, Mr Iswaran noted.
He pointed out that sources of support - be it public, private, philanthropic or others - have varied widely around the world.
Private sources include wealthy financial backers or funds, with some billionaires acquiring established newspapers.
Hong Kong's South China Morning Post (SCMP), for one, was acquired by the Jack Ma-founded Chinese multinational tech group Alibaba in 2016. It was previously owned by Mr Rupert Murdoch's NewsCorp until 1993, before being acquired by Malaysian real estate tycoon Robert Kuok.
"With the largesse of Alibaba, SCMP lifted the paywall on its articles, and was reported to have increased its international reach more than fourfold within three years," said Mr Iswaran. "Yet it remained loss-making. In 2020, SCMP restored the paywall and subscription model, acknowledging that the advertising model is no longer enough to sustain high-quality news."
Mr Iswaran also pointed to The Washington Post, bought by Mr Jeff Bezos of Amazon in 2013 after 80 years of ownership by the Graham family - which had sustained the paper partly from the proceeds of its Kaplan education business.
In the six years before the sale, the paper's operating revenue fell by 44 per cent, Mr Iswaran observed.
He added that other major newspapers now owned by billionaires include the Los Angeles Times. Even hedge funds have got into the act, said Mr Iswaran, noting that Alden Global Capital has acquired over 200 US newspapers, leaving extensive layoffs and cost-cutting measures in its wake.
Mr Iswaran concluded that the global news media industry was under severe structural pressure, with no universal solution. "A few have succeeded; some are struggling; many have failed," he said.
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