Individuals or companies will be allowed to own a five percent equity in newspapers and broadcast firms if the bills introduced Thursday are passed.

Shareholders who are associates could be permitted to own a combined total of no more than 12 percent, the Straits Times said.

The bills will amend the Newspaper and Printing Presses Act and the Singapore Broadcasting Authority Act. The amendments on ownership will apply to both local and foreign investors.

Earlier this month, a member of a government-appointed committee tasked to make Singapore more attractive as a business destination said it was looking seriously at recommending changes to the three percent ownership cap in media firms.

Currently, no single shareholder, foreign or local, is allowed to own more than three percent of a media outlet. Industry watchers say this has deterred potential foreign investors in the industry.

The regulation was introduced by the government in 1977 to ensure that control of the domestic media would not go to foreign entities.

In 1999, Swedish media group Modern Times was reported to have attempted to put up a joint venture to launch a free commuter newspaper, but pulled out after its application to waive the three percent rule was turned down.

The island-republic of four million people is dominated by two large media firms -- Singapore Press Holdings, which publishes the Straits Times and a host of other newspapers, and broadcaster Media Corporation of Singapore which publishes the free commuter tabloid Today.

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