RATE INCREASE “NECESSARY”
SingPost said the rate increment is necessary for it to “continue serving its obligations as Singapore’s public postal licensee”.
The adjustment will help address costlier labour, utilities, fuel, and higher conveyance expenses, it added.
It will also help cushion the loss caused by the “persistent decline in postal volumes”.
The global structural decline in postal volumes over the last decade brought about by digital disruption has impacted the commercial viability of postal firms globally, noted SingPost.
“Between FY2018/19 and FY2022/23, mail volumes declined by more than 40 per cent.”
SingPost chief executive officer, Ms Neo Su Yin said the group has been absorbing inflationary costs and kept its postage rates constant since 2014.
“With the intensifying cost pressures and challenging business landscape, it is inevitable that we raise our prices to remain commercially sustainable so that we can continue providing the essential postal service for the nation,” she said.
SingPost also said in its media release that the rate increase will also allow it to to further explore a more sustainable postal business model in the long term, balancing the need to remain viable while safeguarding the interests of its shareholders.
The group said that it remains committed to “providing high standards of quality postal and parcel delivery services for Singapore, including the provision of self-service and digital platforms, to remain innovative and relevant into the future”.
“SingPost will also continue to strengthen its infrastructure for better productivity and cost efficiencies, whilst investing in sustainability efforts to build business resilience, and drive green initiatives to contribute towards a more sustainable ecosystem.”
SingPost added that it is working with the Infocomm Media Development Authority (IMDA) to conduct a structural review of the postal business and formulate a longer-term strategy to attain commercial sustainability.
