Publisher Singapore Press Holdings (SPH) and broadcaster MediaCorp announced in September they would merge their loss-making television and newspaper operations just four years after competition was introduced into the industry.

During the two-month rationalisation exercise involving 1,200 employees from both companies, it was decided that 132 SPH staff would be retrenched, both firms said in a joint statement.

Another 200 SPH staff will be transferred to MediaCorp, which will manage the newly merged television operations. SPH will retain 97 staff from its TV operations.

MediaCorp will also lay off 72 staff in a bid to improve efficiency.

As part of the rationalisation, SPH's English-language Channel i will be shut down on January 1 due to weak advertising revenues.

"Both parties have concluded that Channel i is not commercially viable because of the fragmented and small English language TV market," the statement said.

"Turnaround in its operations is not expected any time soon."

Singapore's attempts to introduce competition into its media and television sectors in 2000 has turned out to be a costly exercise with both SPH and MediaCorp losing money from the start.

Under the merger plans announced in September, SPH, publisher of a stable of profitable newspapers led by the Straits Times, will give up its two floundering television channels to MediaCorp.

It will merge its free Streats tabloid newspaper with Today, which is published by MediaCorp and expected to turn a profit for the first time next year.

MediaCorp, which is government-owned, will manage the merged television operations under a new company to be formed call MediaCorp TV Holdings. It will own 80 percent of the company with the remaining 20 percent to be held by

The merger is expected to be completed by the end of the year, the two companies said.

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