POSTAGE HIKE” NO Ensure” WILL IMPROVE FINANCIAL Place
While SingPost’s general business is still profitable in the fiscal year 2022, more than 90 % of the profits came from its transportation division and were mainly attributed to its overseas investments, according to Mr. Tan. & nbsp,
Post and piece, SingPost’s primary business in Singapore, suffered operating costs of S$ 16 million.
According to Mr. Tan, this is because of the global decline in text email as well as fierce competition from logistics firms and e-commerce players expanding their own parcel delivery capabilities. He also said that as a result, the cost of delivery per letter has increased significantly. & nbsp,
There is no assurance that the rise in shipping rates will strengthen SingPost’s financial position, as noted by many analysts, Mr. Tan said. & nbsp,
He continued by saying that if customers choose more e-substitution, the increase in sales might not make up for the accelerated decrease in notice volumes. & nbsp,
SingPost is anticipated to invest in modernizing its regional post and shipment business as part of the postage rate increase in order to maintain efficiency and high-quality service. & nbsp,
However, according to Mr. Tan, this action could put SingPost on a more long-term course to fulfill its duties as the common post licensee.
POSTAGE HIKE SUPPORT FOR Organizations
In response to Mr. Yip’s additional query about targeted assistance for those affected by the mail hiking, Mr Tan added that SingPost may continue to offer suitable bulk discounts as well as other forms of customer support to consumers and businesses such as property agencies, charitable organizations, small businesses, and small and medium-sized enterprises( SMEs ).
All first and second native stamps will still be honored even after the post rate rises, the older minister of state continued. & nbsp,
Mr. Tan responded that the government only makes up a” very little proportion” of Singapore’s complete mail volume in response to Assoc Prof. Lim’supplementary question about whether the postal increase amounts to governmental taxation on itself.
In response to Assoc Prof Lim’s query about cross-subsidization, Mr. Tan even emphasized that it is not responsible for a publicly traded company to keep generating losses, particularly SingPost, which receives the majority of its revenue outside of Singapore.
” When the company is doing well beyond of Singapore, it is expected to support the less successful companies in Singapore.” What transpires, however, if it is the other way round? What if companies in different nations are losing money? Is there( an) expectation that we will be able to stop those losses?
” We must be obvious that this is not the regulatory framework in which we are conducting business. The home controller segment receives ringfenced revenues and profits.
Mr. Tan remarked,” It’s not supposed to make up for losses in other businesses, and second opposite.”