Singapore Post (SingPost) S08 has increased its rates for standard regular mail to 51 cents, 20 cents higher than the current rate of 31 cents. This is to reflect the escalating costs of maintaining the postal service.
The group, on July 6, said that it will work with the Infocomm Media Development Authority (IMDA) to review its costs and operating model to ensure the sustainability of its postal services.
In its Sept 19 release, SingPost said that the rate increment was “necessary” for the group to continue serving its obligations as Singapore’s public postal licensee. The move will also allow the group to allow “further exploration” of a more sustainable postal business model in the long term.
“This rate adjustment will help address the loss caused by the persistent decline in postal volumes coupled with costlier labour, utilities, fuel, and higher conveyance expenses,” adds the group in its statement.
The last time SingPost increased its rates significantly was in 2014 when postage increased from 22 cents to 30 cents.
Weight tiers for untracked mail services have also been removed in a bid to simplify the structure of the group’s domestic postage rates.
See also: New IHH Healthcare CEO Nair lays out growth plans
The group saw its mail volumes drop by over 40% between FY2018/2019 and FY2022/2023 due to the global structural decline in postal volumes over the last decade due to the digital disruption.
“SingPost has been absorbing inflationary costs and essentially kept our 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. We are also focused on pursuing our strategic transformation towards eCommerce and logistics to mitigate the persistent decline in postal volumes and explore business growth opportunities,” says Neo Su Yin, CEO, Singapore, SingPost.
The new rates will be made effective on Oct 9.
See also: Seatrium to pay $76.5 mil to Singapore authorities under deferred prosecution agreement
To help households cope with the postage increase, SingPost will issue a first local stamp booklet comprising 10 stamps to each household starting from the end of October.
SingPost will also resume its registered service as a doorstep and sign-for delivery service, which was suspended during the Covid-19 pandemic.
Photo: SingPost
Shares in SingPost closed 0.5 cents lower or 1.02% down at 48.5 cents on Sept 18.
