SINGAPORE - SPH Media Trust’s acquisition of technology media company Tech in Asia is aligned with the intent of government funding and supports the group’s transformation plans, said Minister for Communications and Information Josephine Teo on Nov 22.
She was responding in a written answer to a parliamentary question by Workers’ Party MP Louis Chua (Sengkang GRC).
He had asked whether the Government specifies restrictions on the use of the funds given to SPH Media Trust (SMT), such as on transactions involving mergers and acquisitions.
In February 2022, Mrs Teo had announced that SMT would receive funding of up to $180 million annually over the next five years.
In her response on Nov 22, Mrs Teo said funding for SMT is earmarked for three focus areas: technology development, talent development and the preservation of vernacular media.
To ensure prudent use of public funds, the Ministry of Communications and Information has been closely monitoring SMT’s performance and utilisation of funding in support of these areas, she said.
Earlier in 2023, SMT had informed the ministry of its plans to acquire Tech in Asia and to fund it through existing resources, said Mrs Teo.
As a commercial entity, SMT will have to undertake independent and sound decisions to carry out its mission, including how best to bring about its transformation, she noted.
“While the Government does not get involved in such decisions, we note that the acquisition supports SMT’s transformation and is aligned with the intent of government funding,” said Mrs Teo.
She added that SMT and Tech in Asia would not be disclosing the financial terms of the transaction given market sensitivities, in response to Mr Chua’s question on whether the Government had information on the price paid.
SMT on Nov 1 announced that it had entered into an agreement to acquire Tech in Asia, which would strengthen the offerings of the group, in particular that of The Business Times.
“The synergies from this proposed acquisition will deepen the value BT brings to businesses and readers in the region, and accelerate its goal of becoming a regional player for business and tech news, and events,” SMT said then.
A spokesperson said the combination of BT and Tech in Asia was expected to generate new revenue opportunities for the wider group. The post-merger integration process would take 12 to 18 months.
Mr Chua also asked about measures in place to prevent agglomeration risks in the local media industry.
Mrs Teo said that one should take a broader and more updated view of the media landscape.
With the advent of social and digital media, the media industry has seen increasing fragmentation and intense competition both globally and locally, with diverse forms of content offered across a wide range of online and offline platforms, she noted.
“Nonetheless, as with other industries, the Government will continue to protect consumers and prevent anti-competitive practices, and will take measures to promote fair and efficient market conduct where necessary.”
