Josephine Teo: SMT did not get full funding due to unmet KPIs

SINGAPORE: Josephine Teo, Minister for Communications and Information, disclosed that SPH Media Trust (SMT) fell short of meeting certain Key Performance Indicators (KPIs), resulting in the media entity not receiving the committed full funding.

During the debate on The Ministry of Communications and Information (MCI) budget on Friday (1 March), responding to Leader of Opposition Pritam Singh’s enquiries, Ms Teo noted that SMT did not achieve its KPIs for digital reach, youth reach, vernacular reach, and average time spent on its websites and apps.

“Accordingly, it did not receive the full funding that was committed, ” she said these results indicate that the efforts expended so far are just the initial steps.

While she asserted that the government funding allocated to SPH Media has been “put to good use”, she acknowledged that SPH Media must intensify its efforts to sustain relevance in the dynamic media landscape.

Ms Teo further outlined that MCI has earmarked approximately S$260 million in funding for SPH Media in the fiscal year 2024, anticipating a more demanding environment.

This allocation is documented in MCI’s budget book, constituting part of the ministry’s comprehensive grant disbursement to various organizations.

To date, around S$320 million has been disbursed to SPH Media across the financial years 2022 and 2023.

In 2022, MCI announced a commitment to provide up to S$900 million in funding support for SPH Media Trust over the ensuing five years.

Mr Singh inquires about SPH Media Trust’s KPI performance

Earlier, Mr Singh in his cut on the MCI budget debate, highlighted that  Given the provision of taxpayer funding for SPH Media Trust (SMT), there is considerable public interest in how Singaporeans will be better served by the mainstream media in Singapore.

He emphasized that the government had previously communicated the rationale behind subsidizing SMT, citing reasons such as its transition into a digital news company, the preservation of local news media in vernacular languages, and the establishment of a trusted mainstream media.

“We were told public funding is necessary to support SPH Media Trust as the public will be well served by a mainstream media that is trusted.”

He then requested information regarding the stakeholders involved with SMT and sought clarification on the Key Performance Indicators (KPIs) set for SMT under the funding framework and its performance against these indicators after one year of subsidy.

Furthermore, Mr Singh queried whether the MCI has deemed SMT’s half-yearly updates satisfactory and how SMT has addressed its risk management framework.

Ms Teo: The funding dispersed has been “put to good use”

In response to Mr Singh’s queries, Ms Teo reiterated the critical role of the government in intervening to safeguard SPH Media, emphasizing its indispensable function in informing Singaporeans.

She acknowledged that SPH Media is confronting its most substantial challenge yet, given the profound disruptions caused by digitalization and social media in the broader media industry.

Ms. Teo highlighted the decline in readership, attributed to the abundance of choices available to audiences, and the sharp decrease in traditional revenue sources, with advertising increasingly shifting to social media and online platforms.

Contrary to characterizing these issues as unique to SPH Media, Ms Teo drew attention to the struggles faced by even well-established media entities, citing examples like the Washington Post’s substantial loss and the closure of the Pulitzer Prize-winning Buzzfeed News.

She underscored that without government intervention, SPH Media might have faced a similar fate.

Ms Teo reiterated the government’s decision to support SPH Media, emphasizing that the funding is strategically directed towards talent, technology, and vernacular capabilities.

These areas, she noted, reflect the government’s commitment to promoting quality journalism, digital transformation, and upholding multiculturalism for the sake of public accountability and fiscal prudence.

They reflect the importance the government has placed on quality journalism digital transformation and upholding multiculturalism to ensure public accountability and fiscal prudence

Addressing the matter of stakeholders, Ms. Teo explained that SPH Media Trust includes representatives from various segments of society, ranging from commercial entities like DBS, UOB, and OCBC to local institutes of higher learning such as NUS, NTU, SMU, and SUTD.

“But ultimately SPH Media is accountable to Singaporeans. The news industry is a people-centric business and SPH Media has a crucial public service media role.”

Ms. Teo elaborated on the Key Performance Indicators (KPIs) set for SPH Media, emphasizing their role in tracking reach and engagement across all communities, including specific targets for vernacular outlets, youth, and digital reach.