State newspapers criticised for discount on ads

 

Instead of a cut in budget, the newspapers have launched a new action that would further hit private newspaper companies – a 20 per cent discount on advertisements.

The two papers announced on January 18 that advertising fee would be cut from February 1 onwards.

Saying that a democratic government should not publish its own newspaper, critics said the discount announcement was a blow to private newspapers.

The two state-owned newspapers continue to be on sale at Ks 50 per copy, even though they upgraded to 32 pages in colour starting in the first week of January. 

The number of private newspapers operating in Myanmar has shrunk since 2013 as some had to stop publishing following heavy losses. There is widespread criticism that the discount was intended to strike another blow to the remaining private newspapers, which are gaining getting momentum. 

The information ministry requested a capital expenditure budget of more than Ks 36 billion, including the allocation of more than Ks 3 billion for its loss-making press and publishing industry for the 2014-15fiscal year, former minister Aung Kyi told parliament. 

The ministry was allocated a capital expenditure budget of Ks 82 billion for the 2013-14 fiscal year. The ministry spent Ks 52 billion of this budget to prop up unprofitable state media, including newspapers and broadcasters.

The ministry submitted a draft of the Public Service Media Law to parliament, despite criticisms by MPs about its unprofitable newspapers.

"The state newspapers are attacking private newspapers with aims to make them die off. They cannot compete with the private newspapers. They should no longer accept commercial ads. They should consider letting private newspapers survive. Only on that condition will the independent private newspapers survive," said MP Khine Maung Yee. 

"I say it's not fair that the ministry did such a thing. The market economy principle is based on fairness. These papers are loss-making and ask for bigger budgets every time they need it. They want to dominate the ad market at the expense of private newspapers even thoughthey run on public funds. The state newspapers are just for propaganda. They have no readership," said Chit Win Maung, a writer and publisher.

"Although they're called state-owned newspapers, they're running on public money. They should face market competition bravely. It's unfair. [They] speak for media freedom on one side. But they're trying to kill [that freedom] on the other side. Currently the private newspapers are struggling. They depend on ads. The information ministry runs the state newspapers on public money, and not for the sake of the country. It's just for the sake of the ruling party. They are just for propaganda. We condemn it," said TheinThanOo, an activist from Mandalay. 

When asked what the interim Myanmar Press Council will do to protect private newspapers, secretary Kyaw Min Swe said: "I will think up a plan. We private newspaper publishers will need to collaborate to voice objections against [state media]. I will submit the plan at the council.”