Singapore Press Holdings (SPH) cited the increasing costs of new technology and the impact of the city-state's five percent goods and services tax as two of the reasons for the price rises.

The price of the Straits Times, the group's flagship publication and Singapore's biggest selling daily newspaper with a circulation of nearly 400,000, will rise 20 Singapore cents (US11.83 cents) to 80 cents at newstands from this Friday.

SPH chief executive officer Alan Chan said the increase for the Straits Times and a 10-cent news-stand hike for Lianhe Zaobao, Singapore's major Chinese language daily, were only the second time the publications' prices have risen in 19 years.

Price rises of between five and 10 cents will also apply to Lianhe Wanbao, Shin Min Daily News, the New Paper, the New Paper on Sunday, Berita Harian and Berita Minggu.

News-stand prices will go up higher than those for home and office subscriptions.

SPH said it was the first time it had raised prices for any of its publications since 1995, but it was no longer able to absorb rising business costs.

"Despite our concerted efforts to contain cost, particularly in tightening manpower, our newspaper production costs have gone up significantly over the years," Chan said.

SPH announced on Monday a marginal 1.2 percent net year-on-year profit of $83.75 million, with the slight increase in profit mainly due to higher rental revenue that offset weaknesses in its core earnings.

"The performance of our core business segments remained soft but this was mitigated by additional rental income generated by the new Paragon (shopping mall) extension," Chan said on Monday.

"Despite early signs of an improving outlook for global economic growth, there are continued uncertainties over the growth momentum ahead."

SPH shares finished 10 cents higher at 19.50 on Tuesday.
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