LOCAL MEDIA (Review of rules)

[Mr Speaker in the Chair]

Mr Ong Ah Heng asked the Minister for Information and the Arts whether the Government is going to review the rules on the local media in order to pave way for greater competition in the industry, and, if so, whether the Government is prepared to give licences to news groups, apart from Singapore Press Holdings, to publish newspapers which may be partially or wholly owned by foreign companies.

The Minister for Information and the Arts (Mr Lee Yock Suan): Mr Speaker, Sir, the Government is currently studying the local media structure to keep it abreast of market and technological changes. Whilst it is useful to have market competition, the control of the domestic media should remain in local hands because of their unique nation-building role. They can help unify and share local highpoints and viewpoints among Singaporeans, and get the Government's official position through to the people. Foreigners must not be able to use media to influence local politics.

Our present rules, such as the 3% cap on ownership by any one person and the requirement that only Singaporeans may own management shares, are thus still relevant because they ensure that these goals are met.

Mr Ong Ah Heng (Nee Soon Central): Sir, advertisers always feel that it is expensive to advertise in the newspapers. Could the Ministry control the prices of advertisements in the newspapers so as to make it more affordable?

Mr Lee Yock Suan: Sir, we believe in a free market here, whether it is for advertisements or for other things. I think we should leave it to market forces. If the newspapers are too expensive, the advertisers can resort to other media. For example, we get a lot of junk mail in our post boxes. There are also the TV and other media that they can use.

Mr Ong Ah Heng: Sir, as far as the media is concerned, there is no free market. It is a monopoly. Therefore, I ask whether the Ministry can control the prices of advertisements.

Mr Lee Yock Suan: Sir, there is no monopoly. There are so many newspapers, although they are under the SPH umbrella. But they all compete like cats and dogs.