MEDIA group Singapore Press Holdings (SPH) is the latest company here to announce cost-saving measures to help it ride out the downturn, including a pay freeze for senior management and a slowdown in hiring.

But, despite the tough times ahead, SPH non-executive chairman Tony Tan said on Thursday that the company with a 3,500-strong workforce would help its people keep their jobs.

RELATED LINKS  Dr Tan's full speech

Addressing its annual general meeting, he said Singapore's recession looked likely to last several quarters.

'We do not know when the global economic storms will clear but it would be prudent to make the necessary preparations in the event that the Singapore economy undergoes a prolonged period of below-average growth through 2009 and possibly 2010 before hopefully improving in 2011,' he said.

In anticipation of the impact, SPH had begun acting.

'We have slowed down our hiring, instituted a pay freeze for all senior management staff, tightened our operations and strengthened our financial resources,' said Dr Tan.

'SPH is therefore in good shape to ride out the downturn, although it will be painful.'

A company spokesman said that retrenchments would be the last resort, considered only after a wider-ranging wage freeze or wage cuts had been implemented. Its last major retrenchment exercise was in 2003.

The group publishes 17 newspapers including The Straits Times, and more than 100 magazines. It reported in October a 12 per cent fall in net profit to $437 million for the year ended Aug 31.

This was primarily due to lower investment income and an investment-related impairment charge. Staff costs amounted to about $333 million.

Read the full story in Friday's edition of The Straits Times.