No scope for cost cuts without impairing journalism quality: CEO

There is no further scope for cost cuts without impairing the quality of journalism that SPH Media provides, said Singapore Press Holdings (SPH) chief executive Ng Yat Chung yesterday.

Responding to media questions on whether SPH media staff could face salary and bonus cuts, now that they will come under a not-for-profit entity, Mr Ng said the restructuring exercise "is to make sure that we can preserve the fine bowl of china".

"The intention is not to do anything that will impair the ability of SPH Media to continue to provide quality journalism."

He was referring to what founding prime minister Lee Kuan Yew had said to the late president S R Nathan, when Mr Nathan was appointed executive chairman of Straits Times Press a few years before SPH was formed in 1984.

Mr Lee had said: "Nathan, I am giving you The Straits Times. It has 150 years of history. It has been a good paper. It is like a bowl of china.

"If you break it, I can piece it together. But it will never be the same. Try not to destroy it."

Under the restructuring proposal, SPH Media containing the media business of SPH - including The Straits Times and Lianhe Zaobao - will be transferred to a not-for-profit entity. This will be a newly formed public company limited by guarantee, or CLG.

SPH chairman Lee Boon Yang said that he could not speak for the CLG, as the intention is for it to operate independently.

But he gave the assurance that the media capability in SPH Media will not be disadvantaged or undermined by the transfer.

"The CLG is fully aware of this intention and fully cognisant of the fact that they have now taken on the responsibility of caring for this china bowl.

"They will then continue to nurture and strengthen this previous legacy, rather than undermine it - whether by further right-sizing or wage adjustments," he said.

"They would have to be very careful in ensuring that media capabilities are in no way adversely affected as a result of this transfer."

In a statement, the Creative Media and Publishing Union (CMPU) noted that many of its members are unsure how the announcement might impact their livelihoods.

CMPU president David Teo said the restructuring will have no impact on the collective agreements between the union and SPH.

"CMPU will continue to ensure that its members are treated fairly and will continue to negotiate for fair employment terms and conditions, which include negotiation of bonuses and annual increments, should there be a need or when circumstances develop," he said.

He added that union members and SPH employees can approach CMPU to give feedback or share their concerns.