The Singapore Press Holdings (SPH) announced earlier today (May 6) that it plans to transfer its media business to a not-for-profit company limited by guarantee (CLG).
SPH had also said that it had approached the Ministry of Communications and Information (MCI) with its proposal, and gained initial support.
According to a press release, MCI announced that it has considered and supports the proposal put forth by SPH, pending shareholder approval.
It is also prepared to provide funding support to the newly formed subsidiary.
"In the interest of Singapore and Singaporeans"
MCI pointed out that this move is "in the interest of Singapore and Singaporeans", to ensure that the nation's local media "continues to thrive and deliver quality journalism".
S. Iswaran, Minister for Communications and Information, said that the government agrees with SPH's assessment that the current media business model is not viable:
SPH Board and management have concluded that the current media business model within a listed company structure is not viable, given global technology and industry trends, and on the need for significant investments in digitalisation and capability development.
The Government agrees with this assessment. We are supportive of SPH’s proposal to restructure and transfer SPH Media to the CLG. Our goal is to help the local news media and our journalists adapt and thrive in the digital era while maintaining the high professional standards we expect and value.
Iswaran is expected to deliver a Ministerial Statement on the subject at the next Parliament Sitting on May 10.
MCI will be consulting SPH Limited’s management shareholders on the next steps, including the formation of the CLG.
Top image via SPH