SPH Media's acquisition of Tech in Asia is aligned with intent of government funding: Josephine Teo

SINGAPORE: While the cost of acquiring technology media company Tech In Asia will remain confidential for commercial reasons, the government said the takeover by SPH Media Trust (SMT) supports the entity's mission, which includes its transformation. 

This is aligned with the intent of government funding, said Minister for Communications and Information Josephine Teo on Wednesday (Nov 22). 

She was responding to a parliamentary question from Mr Louis Chua (WP-Sengkang) on whether the government specifies restrictions in the use of the S$180 million annual funding to SMT.

SMT was hived off from Singapore Press Holdings in 2021 to become a not-for-profit entity and will receive S$900 million in public funds over five years. In announcing the funding in February 2022, Mrs Teo said this would help SMT make "essential investments that move it decisively into the digital era".

SMT informed the Ministry of Communications and Information (MCI) earlier this year of its plans to acquire Tech in Asia and fund it through existing resources, said Mrs Teo on Wednesday. 

"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 added. 

“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.”

SMT announced on Nov 1 that it had entered into an agreement to acquire Tech in Asia. The move will serve to "strengthen the offerings of SPH Media and, in particular, that of The Business Times", the group said. 

The acquisition will also support its “broader transformation efforts”, SMT said at the time. 

Tech in Asia was founded in 2010. Its website describes the publication as the largest English-language technology media company that focuses on Asia. 

In a written answer to Mr Chua, who also asked if the government was privy to the amount SMT paid for Tech in Asia, Mrs Teo said both entities would not be disclosing the financial terms of the transaction due to market sensitivities.

Funding for SMT is earmarked for three areas – technology development, talent development and the preservation of vernacular media, she added. 

“To ensure prudent use of public funds, MCI has been closely monitoring SMT’s performance and its utilisation of funding in support of these areas,” said Mrs Teo. 

SPH Media, which is wholly owned by SMT and publishes titles such as The Straits Times and The Business Times, also confirmed on Nov 1 that no layoffs were expected following the merger. 

“The acquisition is rooted in the joint growth opportunity of Business Times and Tech In Asia. As such, we do not anticipate any layoffs. With the merger, our audience and market will grow, creating new opportunities for everyone involved,” a spokesperson said at the time. 

Tech in Asia currently has a staff strength of about 90 and its staff is based in Singapore, Indonesia and across the Asia-Pacific region, SPH Media said. 

It will exist as a subsidiary of SPH Media after the move and as such, the staff will remain under employment with them, said the spokesperson.

"We have mapped out a post-merger integration process which will take 12 to 18 months. We are committed to ensuring a smooth and successful transition for all the employees."