SingPost increases postage rate for standard regular mail by 65% amid rising costs
Singapore Post says it will issue a booklet of 10 first local stamps to each household to help manage the postage increase.
SINGAPORE: Singapore Post (SingPost) will increase the postage rate for standard regular mail from 31 cents to 51 cents – an almost 65 per cent increase – amid rising costs and declining mail volume.
The 20-cent increase reflects the "escalating costs of maintaining the postal service", SingPost said in a media release on Tuesday (Sep 19), adding that the new postage rates will take effect from Oct 9 this year.
The last significant rate increase was nine years ago in 2014 when rates were increased from 22 cents to 30 cents, according to SingPost.
To help consumers manage the costs of the increase, SingPost will issue a first local stamp booklet of 10 stamps to each household from the end of October.
SingPost told CNA that it will provide return options for households who do not want or need the stamps, to reduce wastage.
REMOVING WEIGHT CRITERIA
SingPost also said that it will simplify the domestic postage rate structure, "including the elimination of the weight criteria, to make postal services more user-friendly, enhancing the customer experience and provide greater convenience".
This will apply to weight tiers for its untracked mail services, it added.
This means that 51 cents will be charged for standard regular mail. SingPost currently charges 31 cents and 38 cents for standard regular mail weighing up to 20g and 40g respectively.
Standard large mail of up to 500g will have a flat rate of 80 cents from Oct 9. Currently, SingPost charges 60 cents for mail up to 100g, 90 cents for mail that weighs up to 250g and S$1.15 for mail up to 500g.
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.