Minister for Communications and Information, Josephine Teo, stated on Thursday that the government has implemented safeguards allowing for "ad-hoc audits" on SPH Media Trust (SMT). She emphasized that if serious wrongdoings are discovered, the government reserves the right to terminate funding. This statement came in response to queries from Members of Parliament regarding updates on SMT's review of overstated circulation numbers from September 2020 to March 2022.
The review, which was disclosed in early January, revealed that the reported daily average circulation of SPH Media titles had been inflated by approximately 10 to 12 percent. Following this revelation, SPH Media entrusted its audit and risk committee, with the assistance of legal advisers, to conduct a further investigation into the inflated circulation figures.
In February of the previous year, the government announced its intention to provide up to S$900 million in funding support for SMT over a five-year period. This decision came after SMT was separated from Singapore Press Holdings (SPH) in 2021 to operate as a not-for-profit entity, given the declining nature of print media and the shift towards digital platforms.
Mrs. Teo stated in February last year that SMT's chosen direction appeared promising, although substantial investments would be necessary, and it was expected to incur losses during the transition period. On Thursday, Mrs. Teo informed the House that the first tranche of funding had been disbursed in March this year, clarifying that the events in question occurred prior to the funding period, and no public funds were involved.
Mrs. Teo also expressed the Ministry of Communications and Information's commitment to collaborating with SMT to overcome the challenges posed by the transition of readership to online platforms and to ensure the success of SMT's transformation plans. The funding primarily focuses on three key areas: technology upgrades, talent development, and sustaining the vernacular media.
To ensure accountability, Mrs. Teo explained that the funding agreement already includes measures such as the submission of specific information on key performance indicators (KPIs), which must be agreed upon and cannot be altered without the consent of the Ministry. Additionally, SMT's KPI performance and financial statements must undergo independent external audits.
While SMT's executive team is primarily responsible for internal process evaluation and improvement, the government will intervene in cases of misconduct or mismanagement of public funding. Mrs. Teo reiterated that the government reserves the right to terminate funding in the event of serious wrongdoings.
When asked about public confidence in SMT following the incident, Mrs. Teo outlined the measures to assess accountability. This includes evaluating SMT's success in digital transformation, particularly in digital media, as well as ensuring the maintenance of trust. The government will rely on independent reports, such as those conducted by Reuters, and conduct its own studies to validate the findings.
Improving governance within SMT is another aspect of accountability to the public, according to Mrs. Teo. This involves rectifying flaws in systems for controls, contracting, and pricing, as well as addressing cultural aspects such as attitudes towards misconduct and willingness to report it. Mrs. Teo emphasized that SMT acknowledges the importance of not only communicating the findings but also committing to making improvements.
Regarding SMT's digital transformation, Mrs. Teo acknowledged the challenges brought about by disruption and highlighted the recent Reuters Institute Digital News Report as a reminder of the need for funding support. The report indicated that trust levels in SMT's major titles remained higher than the global average, with 73 percent of respondents expressing trust in The Straits Times. Mrs. Teo emphasized the importance of trusted news media and quality journalism as a public good, especially in an environment plagued by disinformation and sensationalized news.
The Reuters report also highlighted a decline in print news consumption, with only 22 percent of respondents indicating their consumption of print news, down from 53 percent six years ago. Therefore, Mrs. Teo emphasized the need for SMT to swiftly transition to the online space. However, she acknowledged the challenges in building new competencies and the difficult economic conditions for newsrooms in the digital era.
Addressing the issue of KPIs, Mrs. Teo stated that circulation numbers are no longer as relevant as reach in the digital landscape. The focus has shifted to measuring the frequency of audience interaction with a particular title's content. The funding agreement's KPIs include the total reach and engagement of SMT's digital platforms, reflecting the aim of ensuring the success of SMT's digital transformation.
The Ministry of Communications and Information will review the funding agreement, including the KPIs and funding amount, during the mid-term period, taking into account SMT's ability to address management issues.
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