Singapore Post required to meet the Quality of Service standards amid strategic review: Josephine Teo

“As the Public Postal Licensee, SingPost is required to deliver letters to every addressable place in Singapore, provide and maintain a network of posting boxes and post offices to serve postal needs, and meet the Quality of Service (or QoS) standards for letter delivery,” stated Minister for Communications and Information, Mrs. Josephine Teo.

Her remarks came in response to inquiries from Mr Chua Kheng Wee Louis, Workers’ Party Member of Parliament for Seng Kang GRC, on Tuesday (2 Apr) concerning the specific Universal Service Obligations and Quality of Service standards set by the Infocomm Media Development Authority (IMDA) for SingPost, including the provision and maintenance of posting boxes and post offices throughout the nation.

The Minister’s comments highlighted the comprehensive service expectations placed upon SingPost, emphasizing that these standards remain unchanged even in light of SingPost’s recent strategic review.

Mrs Teo elaborated, stating, “These obligations and standards have not changed as a result of SingPost’s strategic review of its business. SingPost must continue to provide sufficient postal services through its network of postal touchpoints and postal agents.”

Addressing future adjustments, Mrs Teo acknowledged ongoing transformations within the postal service landscape.

“However, as I explained in previous PQ responses, IMDA is working with SingPost to review the existing requirements for post offices and posting boxes as it transforms,” she said.

SingPost announced on 19 March that it had completed a strategic review, resulting in the organization being divided into three business units focusing on Singapore, Australia, and the International market. This restructure aims for each unit to better address the specific needs of its market.

Following a strategic approach initiated in 2020, SingPost has been actively expanding its operations in Australia, leading to overseas activities now contributing more than 85% to both the group’s total revenue and operating profit.

The company has also responded to the worldwide decline in letter mail, which has affected the postal industry’s profitability, by adjusting postal rates in October of the previous year.

It increased postal rates in October last year, which contributed to the postal segment returning to profitability in the third quarter of the financial year.

Postage rates for standard regular mail rose from 31 cents to 51 cents – an almost 65 per cent increase – in October last year.

According to SingPost’s website, its QoS standards dictate specific performance targets for postal deliveries.

For local basic letters, the standards require that 98% must be delivered by the next working day (D+1), and 100% by the second working day (D+2).

Local registered letters must achieve a 100% delivery rate by the second working day (D+2). Additionally, incoming basic letters received at the Singapore Post Centre before 3pm are expected to be delivered by the next working day (D+1) 98% of the time.

For outgoing basic letters, the standard mandates that 100% should be processed and connected to departing flights by the next working day, ensuring that international dispatches meet these stringent timelines.