SingPost fast-tracks transition into a regional, digital powerhouse

Another quarter of declining profits puts pressure on the firm to speed up investments outside its now low-margin domestic mail segment.

“As part of our transformation programme, we will continue to invest into people, technology and operations as we scale up our businesses not just in Singapore but in the region. For instance, we are investing in building our regional capabilities as we acquire more regional customers and expand Quantium Solutions’ business. Overseas contribution is growing and now accounts for more than 15% of revenue, up from 12% in the same period last year. At the same time costs grew in tandem with business activities," said Dr Wolfgang Baier, SingPost’s Group Chief Executive Officer, after revealing a dip in group net profit by 2.9% to S$38.1 million in the first quarter.

“While the outlook remains challenging, we are committed to our efforts to transform the business to build a sustainable future for SingPost and for our shareholders. Our transformation programme is gaining good traction in new business areas such as e-fulfilment. We are really excited with the opportunities in ecommerce and m-commerce, and will be expanding our distribution channels with mobile applications and more self-help services. We are also looking to reach out to SMEs going forward. With the decline in high-margin domestic mail, we have to move even faster to offset the impact on profitability," added Dr Baier.

SingPost said that besides growth initiatives, the transformation programme also includes productivity and cost measures as well as a focus on continued service excellence in the domestic market.

SingPost added that the Group continues to explore new technologies and resources to further enhance productivity and service to its customers. One such initiative is ezy2ship, a self-help webbooking tool which will be rolled out in the next few months. SingPost is also exploring the deployment of parcel locker stations which will boost customer service without increasing manpower costs. These parcel locker stations provide customers the flexibility and convenience to drop off and pick up their parcels round-the-clock.