Singpost forced to appoint independent assesor for late mail

Part of anew plan to bring fines up to $50,000 for late mail.

The Infocomm Development Authority of Singapore (IDA) has revised the Quality of Service (QoS) framework for postal services.

A key change is the increase in financial penalty for breach of the standards – a penalty of up to S$50,000/month per indicator may be imposed for non-compliance.

This compares with the current penalty of S$1,000- S$5,000/month per indicator. The second key change is the

requirement for SingPost to appoint an independent assessor to conduct a sampling letter test.

How will this impact SingPost? Here's from OCBC Investment Research:

The revised framework will be applicable to Singapore Post’s (SingPost) basic letter delivery service (effective 1 Jul 2012), and does not apply to parcel deliveries.

According to statistics collected by SingPost in recent years, the group has been delivering over and above IDA’s requirements. Should this trend continue, we do not foresee an impact from the increase in penalty.

Meanwhile, SingPost’s compliance with IDA’s QoS framework is currently measured via a sampling letter test that is carried out by SingPost itself.

Under the new framework, SingPost has to appoint an independent assessor to conduct the sampling letter test at SingPost’s cost as an additional method of measuring compliance.