Singapore Propaganda Holdings (SPH) is in deep shit and may go the privatization route, similar to other failures such as NOL, Tiger Airways, Chartered Semiconductor, SMRT, etc.
But SPH is worse, considering it is no ordinary business but a monopoly which enjoys huge support from the government and almost every business.
The writing has been on the wall for years, as confirmed by its recurrent declining revenue and profit, no thanks to its former civil servant CEO Alan Chan.
Former civil servants never make make good CEOs and Alan Chan will be leaving the company in a very sorry state come September. 😦
Chan’s single achievement during his 14-year term: the destruction of shareholder value. And SPH is no longer a media business because its income from being a landlord has already overtaken its income from media business.
SPH’s business will soon be similar to how PAP runs our country: mainly deriving income from rental. Chan’s foray into property a decade ago had paid handsome returns not because of any foresight but solely due to PAP increasing the population – mostly foreigners to support property prices – by 1.5 million.
SPH is so desperately clueless that it has continued to throw money at investments which it is totally unfamiliar with, ie property development.
It was recently reported that SPH had won a $1.1 billion bid with Kajima to develop a site at Bidadari. SPH is essentially betting on PAP meeting or exceeding its PWP target of 6.9 million.
Should economic conditions worsen, almost-in-ICU SPH will likely be privatized to prevent it from becoming a … laughing stock. (Recall that without PAP throwing billions in tax dollars at SMRT – another monopoly – it would have likely become a penny stock 3 years ago.)