MERGER OF NEWSPAPER COMPANIES

Mr J.B. Jeyaretnam asked the Minister for Foreign Affairs and Minister for Culture whether the proposed merger of the newspaper publishing companies in Singapore was directed or initiated by the Government and, if not, whether the Government had any say in the proposed merger.

Mr S. Dhanabalan: The proposed merger of the newspaper publishing companies in Singapore was neither directed nor initiated by the Government. When the idea was mooted by the publishing companies, the Government raised no objections.

The merger makes sense. The two publishing houses will have to spend $20-30 million a year for the next few years in a long and fierce circulation war. This does not include the capital expenditure of over $50 million on duplicated plant and equipment which will be incurred by both sides. Its outcome will be uncertain. Singapore may at the end of the day still end up with only one newspaper in English and one in Chinese.

In April 1982, the newspapers were restructured to ensure the long-term viability of Chinese newspapers and to upgrade the standard of journalism in English newspapers through competition. The objectives remain unchanged. The merger has guaranteed the long-term survival of the Chinese newspapers. The profit made by Lianhe Zaobao within the Singapore News and Publications Limited (SNPL) will be spared the cost of the circulation struggle.

The Government still believes that Singapore will be best served by having more than one English newspaper.