Newspapers in Asia battle for survival

JAKARTA — Skyrocketing newsprint prices in Asia are forcing many newspapers into battles for survival.

And there appears to be no immediate relief in sight, with some analysts predicting further price surges into next year after rises of 50 per cent or much more since early in 1994.

The first victims have already fallen in a struggle that has political and social, as well as business, aspects in a diverse region, much of which is enjoying an economic boom.

From Pakistan to Australia, analysts say newspapers are mulling ways to make up shortfalls from newsprint purchases, from staff cuts and smaller papers to higher advertising rates.

Bangladesh, Hong Kong, Indonesia, the Philippines and Pakistan appear among areas where newspapers could be hit hardest.

Other countries, such as Australia, Singapore and Taiwan are not immune but are unlikely to feel the pinch as much as others, media executives and analysts say.

In MALAYSIA, analysts say the growth of newspapers will not be affected by newsprint costs because most of them are backed by financially strong companies with political links.

The first shudder was in January when HONG KONG'S Overseas Chinese Daily News closed after 89 years. The English-language daily South China Morning Post in May cut editorial staff by 10 per cent. Both pinned their decisions to newsprint costs in Hong Kong, where legislator and former journalist Emily Lau said rising costs could put more pressures on publishers to exercise self-censorship to secure the China market.

In INDONESIA, a leading publisher has predicted that 100 newspapers and periodicals, nearly one-third of the number now in circulation, could be forced into bankruptcy if newsprint prices continue to rise.

Indonesia views newspapers as a way to educate people, especially in national development, and Information Minister Harmoko said on Friday it should try to produce pulp and paper from bamboo and jute to meet future demand.

The cost of newsprint has more than doubled since early 1994 in PAKISTAN, where some smaller newspapers are crumbling under the pressure.

"Their liabilities are increasing and many of them have not been able to pay salaries for more than two months," said Mr Hamid Ali, of the Jang Group, Pakistan’s biggest newspaper group.

In BANGLADESH, Mr Matiur Rahman Chowdhury, editor of the daily Dainik Banglabazar Patrika, said:

"Many newspapers will be forced to close down because of higher newsprint prices."

Many of the more than 20 newspapers in the PHILIPPINES have already raised cover prices and industry officials say some of them are mulling plans to lay off staff and reduce print runs.

SINGAPORE’S dominant newspaper publisher, Singapore Press Holdings (SPH), plans advertising rate hikes for August and next January to combat newsprint costs.

In SYDNEY, analysts say Rupert Murdoch’s News Corp, which controls 66 per cent of Australian newspapers, are mulling possible rises in local advertising rates and cover prices.

News Corp’s Australian unit, News Ltd, is expected to face a doubling in newsprint costs at some of its papers by the second half of 1996.

NEW ZEALAND’S biggest newspaper publisher, Independent Newspapers, is relaxed about newsprint prices. Managing director Mike Rob-son said a long-term supply contract with manufacturer Tasman Pulp and Paper meant newspapers enjoyed security of supply.

INDIA also appears relaxed. The government on May 1 removed curbs on the import of newsprint and a stipulation that papers should buy two tonnes of domestic newsprint, produced largely by state-run mills, for each tonne imported. — Reuter.

Source : The Straits Times,12th June 1995

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