SINGAPORE – Singapore Post incurred an operating loss of $16 million in its post and parcel business in 2022, amid declining mail volumes and competition from logistics and e-commerce firms that have expanded their delivery capabilities.
Mr Tan said that the postal landscape has changed dramatically in the last decade, prompting the first major increase in postal prices since 2014 so that the licensed public postal company can deliver letters to every address in Singapore. In 2014, postal prices rose from 22 cents to 30 cents. “This is due to the global decline in letter mail, as well as intense competition from logistics companies and e-commerce players growing their own parcel delivery capabilities. As a result, per letter delivery costs have risen considerably.”
SingPost will provide a booklet of 10 free stamps worth 51 cents each for every household, which is likely enough to cover the postal fees for roughly a year since the average consumer sends less than one mail a month, he added. Mr Tan said that IMDA had approved SingPost’s request to hike rates to reflect the cost of delivering letters. The new prices are also comparable to countries like Japan and the United States.
SingPost said previously that mail volume declined by more than 40 per cent between 2018 and 2023, and that the price hike will address rising costs in labour, utilities and transportation.
Source: News Formal (newsformal.com)