SPH Media Trust to receive up to SG$900m in govt funding over next 5 years

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SPH Media Trust (SMT) will receive up to SG$900 million in funding support from the Singapore government over the next five years. Minister for Communications and Information Josephine Teo said during a parliament sitting today that the funding, which amounts up to SG$180 million annually will enable SMT to make "essential investments" that help propel it "decisively" into the digital era, Channel NewsAsia reported.

SMT will not only have more funds to invest in the future but also sustain its current operations during the transition period which Teo described to be critical, CNA said. SMT was spun off from SPH last year to become a not for profit entity amidst the ongoing challenge of falling revenue.

According to Teo, MCI predicts SMT will spend about 40% of the funding on digital talent and tech investments. The rest will be set aside for building up newsroom capabilities, especially for the vernacular newsrooms, The Straits Times said. Although SMT has mapped out a "promising" direction, Teo said investments are still required, adding that it "will likely be loss-making" during the transition period.

Prior to the restructuring, SPH invested SG$50 million each year in digital talent and tech investments. While Teo said this has resulted in "some success", more needs to be done by SMT to accelerate the newsrooms' transformation. The ministry will be monitoring SMT's performance closely through key performance indicators, including the total reach and engagement of its products, especially its digital platforms, as well as specific reach indicators for vernacular groups and youths, media reports said. SMT is also required to offer progress updates to the ministry on a half-yearly basis.

Teo explained that doing so will enable MCI to track SMT's progress and for the government to "help achieve its desired outcomes when necessary". At the same time, the funding quantum will also be reviewed by MCI after the first five years based on the progress it has made, media reports said.

Teo acknowledged that SMT will need to pivot digitally and beef up its user experience, newsroom technology, and constantly evolve its content formats. These include podcasts and videos to help it reach younger readers. According to CNA, SMT will also tie-up with clan associations, community groups, and schools to offer students greater access to its vernacular products.

While it is tougher to sustain an independent vernacular readership due to its small base, Teo explained that it is important to offer credible news products that serve Singapore's multiracial society.

SMT chairman Khaw Boon Wan previously said SMT will "invest heavily" in forming an SPH Media Academy which will double down on sharpening journalists' digital skills and multimedia capabilities. Teo reiterated this in parliament, stating that the new academy will update the newsrooms' training programmes to prepare journalists for the digital age.

This is in line with SMT's vision to become more customer-focused, data-driven and collaborative. As part of its transformation process, SMT has since ceased the print edition of The New Paper and pivoted to being fully digital. Lianhe Wanbao and Shin Min Daily News also officially merged on 26 December 2021.

Last month, SMT named Teo Lay Lum CEO of SPH Media Group with effect from 1 March 2022. She was previously chairman of Accenture Singapore until 31 August and succeeded Patrick Daniel who was previously interim CEO. Khaw said then that Teo brings with her a wealth of experience.

"She has an acute sense of creating opportunities for commercial growth. Most importantly, she possesses a passion for building and transforming people and organisations for the long-term. The Group looks forward to working closely with Teo on strategies to underscore its vision and mission to produce trusted quality journalism," he added.

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