Singapore's media giant awaits new kids on block
REUTERS
SINGAPORE'S newspaper industry is expecting a shake-up this year but the new entrants have their eye on the advertising dollar and are unlikely to challenge the government's tight media grip.
Media experts say while the newcomers will be trying to create niche products to garner a share of advertising revenue they are unlikely to offer diverse political viewpoints.
The advertising pie is worth about S$600 million annually for newspapers. So Singapore readers hungry for new products to add spice to their humdrum diet of staid and serious fare from mainstream newspapers may have to wait a while before this happens.
The city state's daily reading is now determined primarily by the Singapore Press Holdings group (SPH) which has long dominated the scene with its 15-year stranglehold in news publications.
But this year the group faces the novel challenge of competition from at least two local entrants and one foreign-backed player launching new editions if the government gives the go-ahead.
National subway operator SMRT and Swedish media group Modern Times have teamed up to publish a free paper for distribution to Singapore commuters.
The paper will carry world and local news in a condensed format and be circulated via the city-state's Mass Rapid Transit system, which has an average of 958,000 passengers a day.
Media Corp of Singapore, the state-owned television and radio broadcast company, is also considering its options to publish either an entertainment-based Sunday newspaper or a daily evening paper.
Industry sources said a third group, backed by British investors, also had plans to set up a newspaper to cater for the suburban market, where advertising revenue could be up to $200 million annually.
SPH has plans to return fire with two morning newspapers, a free publication and another at subscription for the young, Internet-savvy crowd.
But the new papers are unlikely to stray too far from the type of news delivered by the SPH group's current stable of more than a dozen papers in several languages.
All these keep to the straight and narrow in terms of what gets printed. Editors and journalists often practise self-censorship in coverage of sensitive topics to the young multi-racial nation such as opposition politics, racial and religious issues.
"If you operate a newspaper in Singapore you have to follow the government mind. It cannot be a very critical paper . . . They have to know the local situation, all the laws and regulations," said Hao Xiaoming, a journalism lecturer at a Singapore university.
"The laws are very strictly enforced. The government is very strict about what is said about its operations and the government has the people's support," Mr Hao said.
Singapore Prime Minister Goh Chok Tong recently said the media "should not set national agenda" and should not shoot at the government from outside the political arena.
The media in Singapore is governed by various laws including the Official Secrets Act and Internal Security Act.
Journalists and editors can be imprisoned and publishing licences revoked if these are breached. SPH's flagship Straits Times newspaper, which has a circulation of around 390,000, is openly pro-government. Its other well-circulated English language papers are the Business Times , which sticks to financial news and the New Paper , an afternoon tabloid.
The rival papers may challenge the media giant in new concepts and niche areas but SPH will continue to cater to the needs of the mass market, analysts say.
"I think SPH will retain its dominance for the foreseeable future, but for once there will be at least one independent newspaper that could do reasonably well in Singapore and reap a profit," said one consultant who declined to be named.
He said SPH's sheer size meant it had the ability to absorb lower advertising rates in the face of competition.
"Monopolies rarely are easily destroyed, unless there is full deregulation," he said.
SPH's monopoly status has allowed the group to chalk up profit margins of more than 40 per cent. Its profit last year was $326.33 million on a turnover of $844.80 million.
Analysts said SPH's share price could go for a short dive when newspaper licences were granted to thenew players.
"The share may react to the news. But it will be temporary, and [funds] will not sell it because it's part of their core portfolio," said Lawrence Lye, an analyst at DBS Securities.
The Ministry of Information and the Arts said that it had not received licence applications yet, but consultants believe that interest from state firms may speed up the process.