Singapore Press Holdings (SPH) says it announced to its staff today that it will restore 50% of the pay cuts introduced in April. In addition, SPH will give special one-off amounts to staff to thank them for the sacrifice and contributions they made.

In March, SPH announced pay cuts of between 2% and 10% of basic monthly salaries, depending on salary levels. The pay cuts, effective 1 April, did not affect staff earning $2,000 or less in monthly pay.

The pay cuts were implemented in the face of a weaker advertising market and uncertain business environment resulting from the worldwide financial and economic downturn. They followed a range of other cost-cutting measures implemented by SPH earlier.

Alan Chan, Chief Executive Officer of SPH, said in an SGX statement: “2009 has been a difficult year with the world economy undergoing a deep recession, not seen for many years. SPH had to take quick pre-emptive measures by cutting wages, operating costs and budgets. These helped us weather the financial storm.

“Singapore’s GDP has since seen a strong rebound in the third quarter of 2009 with 14.9% quarter-on-quarter growth. And in the Group's announcement of its financial results for the year ended 31 August 2009, SPH said that in spite of the challenging conditions faced during the financial year, the Group delivered a net profit of $421.9 million, augmented by profits from the Sky@eleven project. Given the circumstances, SPH has done well in the financial year 2009. I would like to express my deepest appreciation and thanks to all staff for their contribution and dedication.”

Chan also thanked the SPH unions for their understanding and cooperation. He said the 50% per cent pay cut restoration would be effective from Jan 1 2010, and the special one-off amounts would be paid at the end of January.

Chan added: “The business outlook remains uncertain despite there being signs of a gradual recovery. Our advertisement revenues, which saw some improvement in recent months, are expected to move in tandem with the economy. We will have to monitor our cost levels closely while at the same time continuing to exploit opportunities to grow beyond print and beyond Singapore.”