While more US newspapers carry out drastic layoffs, the publisher of the Straits Times in Singapore is gradually restoring salaries of employees who had to take pay cuts in order to preserve jobs at the height of the global financial crisis.

   Singapore Press Holdings (SPH), one of Asia's largest media companies, said half of the pay cuts imposed in April – ranging from two to 10 percent – will be reinstated on January 1.

   In addition, staff will also get an unspecified one-off cash payment in January as a gesture of gratitude from the company.

"SPH had to take quick pre-emptive measures by cutting wages, operating costs and budgets. These helped us weather the financial storm," said Alan Chan, chief executive officer of SPH.

   He said advertising income, a major revenue driver for SPH, was improving but cautioned the company must keep a tight rein on expenses.

   "The business outlook remains uncertain despite there being signs of a gradual recovery," said Chan.

SPH earlier reported a 3.6 percent drop in net profit to 421.9 million Singapore dollars (306 million US) in the financial year ending in August, on revenues of 1.30 billion dollars.

   In addition to being a virtual newspaper monopoly, SPH has substantial property holdings and other investments.

It has 4,000 employees. Those earning 2,000 dollars or less were spared from the salary cuts.

    Singapore last month declared its recession over after two straight quarters of growth and predicted the economy would expand by up to 5.0 percent in 2010, after contracting by an estimated 2.0-2.5 percent this year.

 

(by Roberto Colomma - AFP Singapore Bureau Chief)