Singapore Post Ltd (SingPost) is shifting its focus to e-commerce and logistics as demand for traditional mail continues to decline.
Domestic letter volumes fell to 260 million in 2022 amid a global coronavirus pandemic, from about 490 million letters in 2015, Li Yu, CEO for SingPost’s international business, told Singapore Business Review.
“The group thus strategically shifted our focus to logistics, in line with our belief of staying adaptive to market dynamics and harnessing emerging trends,” he said.
Logistics accounted for 69% of SingPost’s revenue for the fiscal year ended March 2024, or $1.17b out of a total $1.69b, according to a statement posted on its website. The group’s full-year net profit more than doubled to $81.5m from a year earlier, even as revenue fell to $1.69b from $1.87b due to lower sea freight revenue.
“By orienting ourselves to capitalise on the [e-commerce logistics] sector’s growth, we are aiming to create market leadership to generate long-term shareholder value,” Yu said. “Our transformation will position us well to scale our logistics ambitions and deliver sustainable growth.”
This story is from the Issue No. 109 edition of Singapore Business Review.
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This story is from the Issue No. 109 edition of Singapore Business Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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