Several Members of Parliament (MPs) filed questions to ask for updates on reports of inflated circulation figures of various titles published under SPH Media.

SPH Media Group is managed under SPH Media Trust (SMT), which was set up after restructuring the media business of its predecessor, Singapore Press Holdings.

The government previously announced on Feb. 16, 2022, that it would provide SMT up to S$900 million over the next five years to aid with its restructuring.

The questions filed in Parliament on Jul. 6, 2023, focused on the follow-up actions by SPH Media Group following the release of an investigation report by its board's audit and risk committee and whether the Ministry of Communications and Information (MCI) will continue with its plan to fund SMT with S$900 million.

Government has already started its funding of S$900 million

In response to the queries, Minister for Communications and Information Josephine Teo replied that the first tranche of funding by the government had been disbursed in March 2023.

According to Teo, "whatever happened" had no bearing on public funds because the government did not have a funding relationship with SMT before the end of 2022.

"In other words, the events preceded the period of funding. No public funds had been involved. Correspondingly, the question of loss of public funds does not arise," she said.

The government's reasons for funding SMT, Teo said, had been previously explained and had "little to do with circulation."

The government will intervene, however, if there is a case of misconduct or mismanagement of public funding, she added.

Teo said that the government also has the right to terminate funding should "serious wrongdoings" be found.

MCI will also be reviewing the terms of the funding agreement, including key performance indicators (KPIs) and funding quantum at the "midterm juncture", with SMT's ability to address management issues taken into consideration, Teo noted.

What are the follow-up actions SMT will take in the wake of the investigation report?

As for the follow-up actions that SMT will take, Teo said this includes SMT benchmarking its reporting to "international standards" by commissioning the World Association of Newspapers and News Publishers to review and advise on methods for measuring the reach of its various titles.

SMT will also improve its internal controls, which include tightening deal structure and pricing approval procedures, enhancing the separation of duties among staff to ensure data accuracy and accountability, and commissioning external parties to review its governance control, among other measures.

In addition, SMT will review its risk culture.

"SMT has assured MCI that they will implement these measures immediately and will provide us with regular status updates on a half-yearly basis," she said.

Why continue to fund SMT?

Turning to the government's funding for SMT, Teo highlighted that audiences in Singapore "consistently" turn to the mainstream media when they need something they can trust.

Teo noted that trust levels in all titles under SMT were much higher than the global average, with 73 per cent of respondents expressing trust in The Straits Times. She cited the 2023 Reuters Institute Digital News Report.

In comparison, trust in the news globally has fallen from 42 per cent in 2022 to 40 per cent in 2023, Teo highlighted.

In addition, she said SMT must "move decisively" into the online space, given the falling share of respondents who consume print news.

However, this will take time to build, Teo noted.

"The costs of running a professional newsroom remains high, and data and technology infrastructure requires substantial upfront costs. Yet revenue streams are a fraction of what they were in the heyday of print media. Advertising revenues have been squeezed with a large share going to platforms run by big tech."

She highlighted that only 15 per cent of Singaporeans surveyed by Reuters are also willing to pay for news.

"The government's funding is ultimately to fulfill a public good: that of trusted news media enabled through quality journalism. MCI is committed to working with SMT to overcome the challenges of disruption and succeed in its transformation."

MCI will carry out its own studies

When asked by MP Hany Soh about whether local confidence has dipped following the announcement of the inflated circulation numbers, Teo replied that SMT was "equally concerned" if the level of public trust ascribed to them suffered a loss due to the incident, as well as the reach of their content.

In describing such a concern as a "key consideration", Teo said that is why SMT has been taking "great pains" to undertake a full and thorough investigation and make the findings public.

As for how SMT will be held accountable, Teo said that MCI will rely on independent reports such as those carried out by Reuters Institute and its studies to confirm the findings of such reports.

The issue of whether SMT has improved its internal controls, governance and risk culture will also be consistently brought up in the review conducted as part of the funding arrangement, Teo said.

This is to ensure that remedies have been implemented and efforts have been made to sustain trust by the public, she added.

Follow up after police investigations will be made public

Pointing out that SPH Media Group had filed a police report on the matter, Teo said that the focus now is to ensure SMT will discharge its public duties responsibly on an ongoing basis.

She said that at a leadership level, the SMT management and board have demonstrated commitment to changing legacy practices.

"We expect SMT to persist in addressing internal weaknesses and systematically follow up on the required changes."

Teo added that the police investigation should be allowed to take its course, and at its conclusion, the follow-up actions will also be made public.

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Left screenshot via MCI/YouTube, right photo by Joshua Lee