Is Singapore’s mainstream media putting words in the prime minister’s mouth? You don’t see Prime Minister Lee Hsien Loong saying there will always be a place for traditional media in presenting trusted, unbiased and informed opinions, as reported by the Straits Times and Today. That’s what the Channel NewAsia reporter says in the middle of this clip recorded by Singapore Enquirer.
According to the transcript of the interview kindly provided by the Straits Times, this is what the prime minister said: “I think the fact that you’ve been able to keep audiences up, readership up in Singapore shows that the mainstream media have credibility.”
“Credibility” may mean the same thing as “trusted”. But it does not mean unbiased. I couldn’t find that word in the transcript.
Newspapers are hardly unbiased, and not just in Singapore. The Guardian is pro-Labour, the Daily Telegraph Conservative, Murdoch supported Tony Blair. The New York Times is pro-Obama, the Wall Street Journal sceptical of his policies. A newspaper’s political leanings colour its choice and presentation of stories too.
If you want just the facts and nothing but the facts, you have to stick to the news agencies: Reuters, AP, AFP and Bloomberg.
Even when newspapers report the same story, there will be some differences. Take a look at the Straits Times and the Wall Street Journal reports about the Government of Singapore Investment Corporation (GIC) not wanting to give up the preference shares it holds in Citigroup though the bank is urging investors to convert them into common stock.
The two stories are almost identical but the first paragraphs are different. The Straits Times says its story is based on the Journal’s but recasts the first paragraph to make it easier to understand for Singapore readers.
I have highlighted the words which are different in the Straits Times report. The words used in the Wall Street Journal’s original report appear here in italics within brackets:
The Government of Singapore Investment Corporation (GIC) does not plan to convert its preferred Citigroup shares into common stock as part of a potential US government effort to help the ailing bank, the Wall Street Journal reported on Tuesday, quoting people familiar with the matter.
But GIC, a sovereign-wealth fund that has seen the value of its initial US$6.88 billion (S$10.5 billion) investment in Citigroup plunge in recent months, could face a dilemma if the bank reaches an agreement with US officials that includes a greater government role.
The WSJ (Wall Street Journal) reported on Monday that Citigroup is in talks with US officials that could give the US government a 40 per cent stake, although talks could still fall apart. The news cheered investors in several Asian markets because of the potential for greater stability in the financial sector if an agreement is reached.
But it also sparked wariness in other corners of Asia, both at the GIC and among market participants as they are concerned that greater US government participation could result in a pullback by the bank in favor (the Straits Times didn’t change the American spelling) of its domestic market, said WSJ.
A spokeswoman for GIC (A spokeswoman for the Singapore fund, known as GIC), and a spokesman for Citigroup in Hong Kong declined to comment.
As part of the plan, Citigroup officials hope to persuade some investors holding preferred shares to follow the government's lead in converting some of those stakes into common stock, according to people familiar with the matter. That would bolster a key measure of the bank's financial health.
Those investors include GIC and other sources of government-controlled wealth, such as Abu Dhabi Investment Authority and Kuwait Investment Authority. Representatives of the latter two didn't immediately comment.
GIC holds preferred shares in Citigroup that represent a beneficial 5.3 percent stake if converted, according to a US Securities and Exchange Commission filing late last month. The preferred shares offer an annual coupon of 7 per cent. Converting the preferred shares into common stock would cut off that income stream.
'If GIC is to convert into common stock, the deal must be sweetened quite a lot. They want to make sure that their return will be equal or above the coupon,' WSJ quoted (said) one of the people familiar with the matter as saying.
But a greater US government role could increase pressure at Citigroup to halt dividend payments. If it then converted the preferred shares to common, GIC risks being diluted or wiped out if Citigroup needs another capital injection or is nationalised (nationalized) by the US government.
GIC bought the convertible preferred securities in January 2008. Based on Citigroup's US$1.95 closing price on Friday, the stake is worth US$592.4 million. Citigroup shares were up 11 per cent to US$2.17 in midday trading Monday on the New York Stock Exchange.
