“CHALLENGING OPERATING ENVIRONMENT”
The company said the global economic outlook remains clouded by ongoing trade tensions following the imposition of US tariffs and retaliatory measures by key trading partners.
“These developments have disrupted international trade flows, created greater volatility in supply chains and weakened global economic forecasts,” SingPost said.
It noted that the logistics sector has been impacted, with cross-border logistic volumes “under pressure”.
“This, along with geopolitical tension, has led to a more uncertain and challenging operating environment.”
SingPost expects the “challenging conditions” to persist into this financial year.
Additionally, after the divestment of its Australia business, the group has taken steps to sharpen its focus on its core business, which includes streamlining its operations to right-size the cost base.
Following the review by the board, the company’s international cross-border business has been reintegrated into the Singapore postal and logistics business to achieve “business synergies and drive operational efficiencies”.
The cross-border business will continue to be part of SingPost’s product offering, leveraging the international postal network, it added.
SingPost also said that efforts are underway to strengthen Singapore’s postal and logistics operations for greater efficiency, with a S$30 million investment in a new automation system to expand processing capacity for small parcels at the Regional eCommerce Logistics Hub facility, creating a pathway for future growth.
The company added that it remains engaged with the Singapore government on the future operating model that will place the postal service on a profitable and sustainable footing.
“The group remains committed to disciplined capital management, safeguarding cash flow and exercising cost prudence to preserve financial strength.
“The group also continues to explore opportunities to progressively divest and unlock the value of non-core businesses and assets,” SingPost said.
The review and reset of the company’s strategy is ongoing.
In February, SingPost said that it would lay off 45 employees – primarily in corporate support units – in a restructuring exercise.
“For affected roles, the company has exhausted options to find alternative positions within SingPost,” the company said then.
It added that the layoffs were “not correlated” with any previous incidents or whistleblowing reports.
In December last year, SingPost fired three senior executives after a probe into a whistleblower’s report found “grossly negligent” behaviour in their handling of internal investigations.
The three executives, group CEO Vincent Phang, group CFO Vincent Yik and the chief executive of SingPost’s international business unit Li Yu, have said they would contest their sackings.
