SingPost directors quizzed about CEO search and company's future strategies at AGM
Meanwhile, chairman Simon Israel, at his last SingPost AGM before stepping down, disclosed that the decision to divest SingPost Centre, the group's flagship headquarters building in Paya Lebar, now lies with the reconstituted board, which will review whether the property is non-core to the group and is to be sold.
He and other directors were quizzed at the listed firm's 33rd AGM held at Suntec Singapore about the reset strategy that shareholders have been looking forward to since they approved the divestment of the Australian logistics business Freight Management Holdings for A$1 billion (about S$845 million) in March.
They were also queried about the CEO who would replace the dismissed predecessor and be tasked with executing the reset strategy. Former CEO Vincent Phang was fired together with group chief financial officer Vincent Yik and CEO of international business unit Li Yu in December 2024 over the alleged mishandling of a whistle-blower's report.
The questions from shareholders came as the presentation at the AGM left them none the wiser about SingPost's plans or strategies to replace the divested Australian logistics business, which had been a core business and key financial contributor.
One shareholder said the reconstituted seven-member board, including incoming chairman Teo Swee Lian, did not have an idea as yet about the path forward, despite the board renewal and the passage of time.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
'We came here with a lot of expectation... I feel very disappointed... We already know the current situation, but what's next? What kind of CEO are you looking for to run whatever remains (under) SingPost?
'You tell us to be patient. We have been patient all this while. Today is an important day; I thought you should have at least given us some guidance that (would signal) there is hope for SingPost.'
This shareholder also asked the recently appointed non-executive, non-independent director Gan Siok Hoon – deputy group chief corporate officer of Singtel – to share the views of the telecommunications company, considering it is SingPost's major shareholder.
Israel pointed out that Gan is not the spokesperson for Singtel.
Questions over a new CEO
Another shareholder asked the board what kind of CEO it is looking for, and suggested that a new helmsman be appointed only when the board has a clear strategy.
'Because your strategy is still in a little bit of a flux, you may hire a CEO and end up with the CEO (having) nothing much to run… Should you be a bit cautious in terms of hiring the CEO at this point, or should you continue to run with an interim CEO (until the board has) more certainty? Because I think the kind of CEO you need also depends on the strategy that you think the company should pursue.'
Teo asked for patience and the opportunity for her board to do a review as these are 'not easy issues'. Also, she flagged that there will be a conversation with 'very important stakeholders' on what to do.
She added: 'I do not know of any high-performing organisation that wants to continue the situation without the CEO. I think that's not best practice, really. So we do have to search for a CEO. We're very fortunate, we have the candidates… We will, in due course, identify who the person will be.'
The CEO must have leadership quality, think out of the box with a free hand, and be enterprising, Teo elaborated.
'We're looking for people who can actually take a company which is not in the best situation, and still find what can be done in order to get a pathway for (us) to be sustainable in the long term.'
A shareholder suggested that SingPost take the privatisation route and liquidate its assets, including SingPost Centre, and return capital to shareholders. But Israel replied that privatisation is not within the board's scope of work and that it requires an external actor.
Regarding SingPost Centre
The outgoing chairman also told shareholders that the SingPost Centre would be 'the last big piece' to unlock value, after SingPost sold its Australian logistics business in March and its freight-forwarding business this week, as well as the earlier sale-and-leaseback bid of 10 HDB shophouses for S$50 million.
SingPost Centre was defined as 'non-core' following a strategic review in 2023-2024, because the board did not think SingPost was a property company, Israel said. The directors have not decided on the timing of the divestment even though the property, last valued at about S$1 billion, has since been earmarked for sale.
Israel pointed out that the board has never set out a timeline for the sale of this asset.
He added: 'Now that brings us to today's circumstances... It's quite clear that the short-term earnings of SingPost, while it works its way through its strategy and what the future holds and which options it's going to pursue, are underwritten by the property business.
'So it really will be for the board in the future to define whether that remains non-core, it becomes core, or whatever the options are around that property.'
The business contributed an operating profit of S$48.4 million for the full year ended Mar 31 – more than any other segment, and higher than the total group operating profit of S$44.3 million after accounting for operating losses in some segments.
All 13 resolutions were approved at the AGM that lasted more than 1.5 hours, including for a special dividend of S$0.09 per share to be paid out of the sale proceeds of the Australian logistics business.
The counter closed up 2.3 per cent or S$0.015 at S$0.655 on Wednesday.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
42 minutes ago
- Straits Times
Australia to buy 11 advanced warships from Japan: Defence minister
Sign up now: Get ST's newsletters delivered to your inbox SYDNEY - Australia will upgrade its navy with 11 Mogami-class frigates built by Japan's Mitsubishi Heavy Industries, Defence Minister Richard Marles said on Aug 5. Australia announced a major restructuring of its military in 2023, turning towards long-range strike capabilities to better respond to China's naval might. It is striving to expand its fleet of major warships from 11 to 26 over the next 10 years. 'This is clearly the biggest defence-industry agreement that has ever been struck between Japan and Australia,' he said, touting the US$6 billion (S$7.7 billion) deal. Mitsubishi Heavy Industries was awarded the tender over Germany's ThyssenKrupp Marine Systems. 'This decision was made based on what was the best capability for Australia,' Mr Marles said. 'We do have a very close strategic alignment with Japan.' Mogami-class warships are advanced stealth frigates equipped with a potent array of weapons. Mr Marles said they would replace Australia's ageing fleet of Anzac-class vessels, with the first Mogami-class ship to be in service by 2030. 'The Mogami-class frigate is the best frigate for Australia,' he said. 'It is a next-generation vessel. It is stealthy. It has 32 vertical launch cells capable of launching long-range missiles.' Top stories Swipe. Select. Stay informed. Singapore Singapore launches review of economic strategy to stay ahead of global shifts Singapore A look at the five committees reviewing Singapore's economic strategy Opinion Keeping it alive: How Chinese opera in Singapore is adapting to the age of TikTok Life Glamping in Mandai: Is a luxury stay at Colugo Camp worth the $550 price tag? Sport World Aquatics C'ships in S'pore deemed a success by athletes, fans and officials Singapore Strong S'pore-Australia ties underpinned by bonds that are continually renewed: President Tharman World Trump says he will 'substantially' raise tariffs on India over Russian oil purchases Defence industry minister Pat Conroy said the frigates were capable of launching long-range Tomahawk cruise missiles. 'More lethal' 'The acquisition of these stealth frigates will make our navy a bigger navy, and a more lethal navy,' he said. The first three Mogami-class frigates will be built overseas, Mr Conroy said, with shipbuilding yards in Western Australia expected to produce the rest. Australia announced plans in 2021 to acquire US-designed nuclear-powered submarines, scrapping a years-long plan to develop non-nuclear subs from France. Under the tripartite Aukus pact with the United States and the United Kingdom, the Australian navy plans to acquire at least three Virginia-class submarines within 15 years. The Aukus submarine programme alone could cost the country up to US$235 billion over the next 30 years, according to Australian government forecasts, a price tag that has stoked criticism of the strategy. Major defence projects in Australia have long suffered from cost over-runs, government U-turns, policy changes and project plans that make more sense for local job creation than defence. Australia plans to gradually increase its defence spending to 2.4 per cent of gross domestic product – above the 2 per cent target set by its Nato allies, but well short of US demands for 3.5 per cent. AFP
Straits Times
an hour ago
- Straits Times
Australia awards navy frigate contract to Japan's Mitsubishi Heavy
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: Australian Deputy Prime Minister and Minister for Defence Richard Marles looks on during his ceremonial reception, in New Delhi, India, June 4, 2025. REUTERS/Anushree Fadnavis//File Photo SYDNEY - Japan's Mitsubishi Heavy Industries will deliver Australia's new A$10 billion ($6.5 billion) navy frigate programme, Australian Deputy Prime Minister Richard Marles said on Tuesday. The deal underscored Canberra's "focus on investing in the capabilities we need now and into the future, to meet Australia's strategic circumstances", he said. The frigate contract is the biggest Australian defence purchase since the government agreed to build nuclear-powered submarines with the United States and Britain in 2023. MHI's Mogami frigate was selected over German company ThyssenKrupp Marine Systems' MEKO A-200 in a meeting of the government's national security committee on Monday. Marles told reporters that while the MEKO-class frigate was "very impressive", the Mogami-class frigate was "the best frigate for Australia". The upgraded Mogami-class frigate has a range of up to 10,000 nautical miles, compared to Australia's current Anzac Class frigates, which have a range of around 6,000 nautical miles, Marles said. The government said in 2024 it would spend up to A$10 billion for the general-purpose frigates to replace the Anzac Class. They will be equipped for undersea warfare and air defence to secure maritime trade routes and Australia's northern approaches. Top stories Swipe. Select. Stay informed. Singapore Singapore launches review of economic strategy to stay ahead of global shifts Singapore A look at the five committees reviewing Singapore's economic strategy Opinion Keeping it alive: How Chinese opera in Singapore is adapting to the age of TikTok Life Glamping in Mandai: Is a luxury stay at Colugo Camp worth the $550 price tag? Sport World Aquatics C'ships in S'pore deemed a success by athletes, fans and officials Singapore Strong S'pore-Australia ties underpinned by bonds that are continually renewed: President Tharman World Trump says he will 'substantially' raise tariffs on India over Russian oil purchases It says the first three general-purpose frigates will be built offshore, with the remainder built in Western Australia. REUTERS
Straits Times
5 hours ago
- Straits Times
Rugby Australia chief certain Lions will return in 2037, Giteau Law scrapped
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: Rugby Union - Australia v British & Irish Lions - Third Test - Accor Stadium, Sydney, Australia - August 2, 2025 Australia celebrate their win over the Lions Dean Lewins/AAP Image via REUTERS/File Photo SYDNEY - Rugby Australia chief Phil Waugh was disappointed the Wallabies lost the test series against the British & Irish Lions but believes the tour was a huge success and talk that the tourists might not return in 2037 was well wide of the mark. Some media pundits had suggested after the Lions comfortably won the first test in Brisbane that Australian rugby was so weak the country no longer deserved its place on the touring rotation along with New Zealand and South Africa. Waugh thought the competitiveness of the Wallabies in the second test in Melbourne, where they came within seconds of victory, and the third in Sydney, where they won 22-12, had firmly quashed any speculation about the Lions not returning. "Australia is a really important home for the Lions tour every 12 years," the RA chief executive told reporters at the conclusion of the series. "On the field, I think the accumulative points, they got one point better than us and one try better than us, and it was a really fierce test battle. "So I think any of that speculation, it was shut down by a number of people, including their CEO, who spoke at various events committing to return to Australia." Waugh thought the second test, which attracted a crowd of 90,307 to the Melbourne Cricket Ground, was one of the best internationals he had seen in a while and said he had been impressed with the Wallabies throughout the series. Top stories Swipe. Select. Stay informed. Singapore Singapore launches review of economic strategy to stay ahead of global shifts Singapore A look at the five committees reviewing Singapore's economic strategy World Trump says he will 'substantially' raise tariffs on India over Russian oil purchases Singapore Strong S'pore-Australia ties underpinned by bonds that are continually renewed: President Tharman Singapore All recruits at BMTC will be trained to fly drones and counter them: Chan Chun Sing Sport Singaporean swimmer Gan Ching Hwee at 'crossroads' after World Aquatics C'ships display Singapore Ong Beng Seng to be sentenced on Aug 15, prosecution does not object to fine due to his poor health Singapore Pritam Singh had hoped WP would 'tip one or two more constituencies' at GE2025 "I think it's been an overwhelmingly successful tour, albeit would have been nice to win the ... trophy, but that wasn't to happen," he added. "I think that the progress that's continued through the group, and I think the cultural growth of the group, has been really, really pleasing." Around 450,000 fans attended the nine matches and Waugh said the tour had exceeded expectations on financial returns for both RA and the Lions. REDUCE DEBT Exactly what the returns were was still being calculated, he said, but Australia's proceeds would go to reducing the A$80 million ($51.78 million) credit facility RA took out in 2023, which cost more than A$9 million to service last year. "It certainly exceeded expectations," Waugh said. "I've always said that it's a really good opportunity for us to reset the balance sheet. "We've got the debt facility, and ideally we pay that down as quickly as possible, given the cost to carry it ... then we'll lean into the next broadcast cycle to get to a financially sustainable model." The Wallabies got great returns in the series from Will Skelton, the wrecking ball of a lock who was recalled from his French club to take on the Lions. Tighthead prop Taniela Tupou, who played a key role in the third test victory, will also be moving to a French club this year, which would once have made him ineligible to play for the Wallabies. That blanket ban was eased ahead of the 2015 World Cup under the 'Giteau Law', which allowed the Wallabies coach to select three overseas-based players under certain criteria. RA's Director of High Performance Peter Horne confirmed that all restrictions on test selection had been scrapped when Joe Schmidt took over as Wallabies coach last year. "Joe's got no impediment to select whoever he wants. That's always been the case. The Giteau Law's kind of redundant," he said. "But we've also made a choice that we select domestically if the players are of equal calibre, it's important that we invest in our premier competition in Australia." REUTERS
