Business model has to change to safeguard trust in media: Minister

While readership is up, revenues are down, impacting media's ability to uphold quality

Law and Home Affairs Minister K. Shanmugam speaking to reporters at a constituency event yesterday. He said that it is vital for the media to retain the trust of the public, as media that is not trusted will lead to a government and political leaders
Law and Home Affairs Minister K. Shanmugam speaking to reporters at a constituency event yesterday. He said that it is vital for the media to retain the trust of the public, as media that is not trusted will lead to a government and political leadership that are not trusted. ST PHOTO: KUA CHEE SIONG

While newspaper readership in Singapore has grown, bottom lines have suffered as the old business model that relies heavily on advertising revenue no longer works, Law and Home Affairs Minister K. Shanmugam said yesterday.

Singapore Press Holdings (SPH) newspapers - which include The Straits Times and Chinese-language daily Lianhe Zaobao - have done "extremely well" in terms of readership, he noted.

"Readership has gone up, but at the same time, bottom lines have come down, suffered," he said.

"Ad revenues have come down sharply. The old business model doesn't work."

These pressures are faced by newspapers around the world, and have seen some titles taken over by billionaires and others getting government support, he added.

The minister said this is the context in which SPH's restructuring plan, which will see its media business transferred to a not-for-profit company, has to be seen.

The Ministry of Communications and Information has said the Government is prepared to provide funding support to the entity.

Mr Shanmugam said it is vital for the media to retain the trust of the public, as media that is not trusted will lead to a government and political leadership that are not trusted.

"We have to maintain trust in all our institutions, and the media has to play its part in making sure that it maintains the trust of the people," he added.

Speaking to reporters at a constituency event, he said: "Media businesses in most countries are under pressure. Many newspapers in Europe and the US have closed. Many others have been restructured, including some of the best-known international newspapers."

He cited the Chicago Tribune and The Denver Post, both of which had to be saved from bankruptcy.

Others, including The Washington Post and Hong Kong's South China Morning Post, have been taken over by billionaires such as Mr Jeff Bezos and Mr Jack Ma.

And governments of many countries - including France and Australia - also provide financial support to newspapers, like France's Le Monde, sometimes to the tune of hundreds of millions of euros.

"They are all aiding their media," Mr Shanmugam said.

"You have no choice if you want high-quality journalism."

The minister also spoke about trust in the media, noting that independent surveys, such as the Edelman Trust Barometer, have shown that Singapore ranks higher than other developed countries - including the United States, Britain and Japan - on this topic.

Around 62 per cent of respondents in Singapore trust the media to do what is right, compared with the global average of 51 per cent.

A YouGov survey last year found seven in 10 people here trust local media reporting on Covid-19, compared with three in 10 in Britain.

"If the media is not trusted, it would inevitably lead to a government and political leadership that are not trusted. Then, we are all finished if that happens," Mr Shanmugam said.

He was also asked about SPH chief executive Ng Yat Chung's remarks at a press conference on the move that sparked furore online.

Mr Ng had told a reporter he took umbrage at her question, and a video of the segment was widely shared. The reporter, from Mediacorp's CNA Digital, had asked if the company "will now pivot to emphasise editorial integrity, for example, ahead of advertiser interests".

"Both the reporter who asked the question, and her editor, Walter Fernandez, know that taking money from an advertiser doesn't automatically mean that independence is compromised," Mr Shanmugam said. Mr Fernandez is Mediacorp's editor-in-chief.

"If that were so, most newspapers in the world would not be considered independent because most newspapers do, in fact, completely rely on advertisements."

He added that the question was nevertheless a fair one, given that journalists would be concerned about their independence.

"Mr Ng's reaction, and the way he answered the question, I think was very unfortunate. His outburst can be described in stronger terms," the minister said.

"But I want to be careful... because SPH is a listed company, with shareholders and management."

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A version of this article appeared in the print edition of The Sunday Times on May 09, 2021, with the headline Business model has to change to safeguard trust in media: Minister. Subscribe