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Business Times
a day ago
- Business
- Business Times
Should SingPost stop delivering letters?
MY APOLOGIES to arborists, but every two weeks, I make a disgruntled trek from my mailbox to the nearest rubbish bin. Directly from box to bin goes not just unsolicited flotsam – property agents' fridge magnets and handyman's flyers – but legitimate mail that I simply don't need in hard copy, like dividend statements, utility bills and government missives. Come next year, the Danes will be spared these mailbox-rubbish bin sojourns because Denmark's state-run postal service, PostNord, will no longer deliver letters. Instead, it will start phasing out the nation's 1,500 post boxes this month and focus on delivering parcels. This isn't a seismic development – since the turn of the century, Denmark has seen a 90 per cent decline in letter volumes. Even so, those who prefer to send a ransom letter the old-fashioned way still can, since the nation's letter market was opened up to private firms last year. Laidback kidnappers aside, fewer people are posting letters, globally. In Singapore, total domestic mail volume fell more than 40 per cent from 2020 to 2024. The overseas travails of our national postal service, Singapore Post (SingPost), are confounding, but there is some low-hanging fruit on the domestic front. Today, SingPost's post office network remains unprofitable, while operating profit from its local postal and logistics segment is down. So, it wouldn't be unfathomable for SingPost to get out of the local letter business entirely, given Singapore's high rate of technology adoption and a national system that has digitally consolidated the vital government services that citizens need. 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 Currently, nationalisation has been ruled out, but tweaking the postal network and raising postal rates remain options. If rates are merely marginally raised, though, it would be challenging to strike a balance between the resulting fall in letter delivery demand and other costs that might not fall proportionately. SingPost's monopoly on basic mail services ended in 2007, and perhaps, other private players might be better equipped to sustainably price or subsidise local letter delivery. But if moving bits of paper around the country is financially or logistically unviable no matter which company attempts it, then this service should be treated like a public good and be funded publicly, or cease entirely. Truly important bits of paper could still be couriered like parcels and priced accordingly. When that happens, I suspect that many businesses will reconsider the need for hard-copy documents in a hurry. 'When a letter costs 29 Danish krone (S$5.69) there will be fewer letters,' PostNord Denmark's managing director said earlier this year. Indubitably, this change will require drastically reshaping SingPost's obligations as a public postal licensee. It would be a timely opportunity to re-examine what constitutes critical infrastructure in 2025. One might find that this nexus of national security has moved on to other infrastructure such as fibre-optic subsea cables and semiconductor plants. Consider how most of us were notified of Covid-19 vaccinations during the pandemic. During that pathogen-laden time, touching your mailbox would actually have been counter-productive. There is every chance that this measure might not adequately move the needle on the larger scale of SingPost's woes. If that were the case, that would also be instructive. For if the albatross and mispricing of letter delivery are not the biggest of SingPost's problems, it probably has other bigger and more intractable ones.
New Paper
4 days ago
- General
- New Paper
New stamp series showcases critically endangered native coastal plants in Singapore
The sea trumpet tree and queen coralbead vine are among four species featured in a new set of stamps that showcase critically endangered native coastal plants. The stamp series - the result of a tie-up between Singapore Post (SingPost) and the National Parks Board (NParks) - aims to shine a light on Singapore's unique natural heritage and the urgent need for conservation, the two agencies said in a joint statement on May 30. The series also comes just in time for the Festival of Biodiversity, which will be held at the Plaza in the National Library Building, from May 31 to June 1, the statement added. The stamps, valued at between 52 cents and $2 each, can be bought at all post offices, on the SingPost website, and philatelic stores from May 30. They will also be sold at the festival. Apart from the sea trumpet and queen coralbead, the stamps feature the Ormocarpum cochinchinense tree and Ficus stricta, a type of strangling fig tree. The four plant species are recognisable by their striking ornamental flowers, fruits and foliage, and are part of the NParks' Species Recovery Programme, which aims to secure the long-term survival of rare and endangered native flora. The latest series is titled Critically Endangered Flora Of Singapore - Flora Of Coastal Forests, and is the last of three stamp series to showcase endangered plant species in Singapore. The 2024 series highlighted the critically endangered native flora of Singapore's tropical lowland rainforests, which include the two-fold velvet bean climber, tiger's betel, the squirrel's jack and the Kadsura scandens. All four plants can be found in the Bukit Timah Nature Reserve and Central Catchment Nature Reserve, said NParks. In 2023, four critically endangered native floral species from Singapore's swamp forests were featured on stamps: the lipstick plant, Singapore Kopsia, red Salak, and Fagraea splendens. They were found or rediscovered in the Nee Soon Swamp Forest, which is the only remaining primary freshwater swamp forest in Singapore.
Business Times
21-05-2025
- Business
- Business Times
Time's not ripe for SingPost to sell its flagship building
[SINGAPORE] The share price of Singapore Post (SingPost) said it all about investors' attitude towards the national postal service provider's latest set of financial results. The share price tanked 12 per cent on May 15 despite SingPost proposing a dividend of S$0.09 a share for FY2025 ended March, with the payout from the gain from disposal of its Australian logistics business. But shareholders' focus were not only on the special payout – the net loss of S$461,000 for SingPost's second half of the year was clearly not lost on them. The net loss could be said to be insignificant at first glance, but it is in fact a reversal from earnings of S$28.1 million for the year-ago period. SingPost attributed the dismal performance to intensifying challenges and uncertain conditions in the global logistics sector. Revenue decreased 12.1 per cent to S$387.5 million for the half year, with all segments recording declines. But sub-segments property and freight forwarding both delivered improvements of 10.7 per cent and 15.8 per cent, respectively. Both domestic and international postal and logistics businesses posted lower revenue, with the international business declining 39.2 per cent year on year and local, 9.6 per cent. 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 Similarly, SingPost's property and freight forwarding sub-segments were the better-performing ones in terms of operating profit, delivering an improvement of 17.8 per cent and 31 per cent, respectively. Its local postal and logistics business' operating profit was down 55 per cent to S$7.4 million, while international business went deeper into the red at S$5.3 million from S$0.6 million in operating loss. This underscores the continued secular decline of the domestic postal and logistics business, and the highly competitive international postal and logistics market that SingPost is in. Unsurprisingly, the company commented that its domestic postal and logistics business saw lower profit from its delivery business and losses in other services, while the post office network remained unprofitable. SingPost is streamlining its operations to reduce its cost base, including reintegrating its international cross-border business into the Singapore business, to achieve synergies and efficiencies. It will also reset its strategy of its Australian logistics business post-sale. Still, given the smallish Singapore market and the competitive cross-border business, as well as the secular decline of the postal business, there is arguably a limit to what SingPost can achieve in terms of top line and bottom line. Meanwhile, the divestment of non-core assets, including its headquarters building SingPost Centre, remains on the cards. Non-core assets might not be central to or key pillars of a firm's main businesses, but they do have their usefulness and a place in the portfolio at times, as seen in SingPost's latest financial results. Its property segment raked in full-year operating profit of S$48.4 million – 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. SingPost Centre, for example, recorded increased rental income amid a higher overall occupancy rate of 98.2 per cent as at Mar 31, compared to 96.2 per cent as at end-FY2024. The retail mall was fully occupied compared to 99.6 per cent previously, while the office space occupancy rate rose to 97.6 per cent from 94.8 per cent. SingPost's directors' bid to unlock value for shareholders – through various means such as selling non-core assets – is commendable. But it would likely be saddled with non-remarkable domestic and international postal and logistics businesses before its reset strategy becomes fruitful. Surely, SingPost would like to have a stable and supportive base of shareholders, not the opportunistic who swoop on the stock on news of potential disposal gains and dump it after reaping the capital gain. The group on Wednesday (May 21) announced chairman-designate Teo Swee Lian will helm the board from the next annual general meeting, and appointed several new directors recently. The board and shareholders might want to reconsider selling SingPost Centre, at least not before its reset strategy bears fruit.
Business Times
21-05-2025
- Business
- Business Times
Should SingPost divest its headquarters building?
[SINGAPORE] The share price of Singapore Post (SingPost) said it all about investors' attitude towards the national postal service provider's latest set of financial results. The share price tanked 12 per cent on May 15 despite SingPost proposing a dividend of S$0.09 a share for FY2025 ended March, with the payout from the gain from disposal of its Australian logistics business. But shareholders' focus were not only on the special payout, the net loss of S$461,000 for SingPost's second half of the year was clearly not lost on them. The net loss could be said to be insignificant at first glance, but it is in fact a reversal from earnings of S$28.1 million for the year-ago period. SingPost attributed the dismal performance to intensifying challenges and uncertain conditions in the global logistics sector. Revenue decreased 12.1 per cent to S$387.5 million for the half-year, with all segments recording declines. But sub-segments property and freight forwarding both delivered improvements of 10.7 per cent and 15.8 per cent, respectively. 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 Both domestic and international postal and logistics businesses posted lower revenue, with the international business declining 39.2 per cent year on year and local, 9.6 per cent. Similarly, SingPost's property and freight forwarding sub-segments were the better-performing ones in terms of operating profit, delivering an improvement of 17.8 per cent and 31 per cent, respectively. Its local postal and logistics business' operating profit was down 55 per cent to S$7.4 million, while international business went deeper into the red at S$5.3 million from S$0.6 million in operating loss. This underscores the continued secular decline of the domestic postal and logistics business, and the highly competitive international postal and logistics market that SingPost is in. Unsurprisingly, SingPost commented that its domestic postal and logistics business saw lower profit from its delivery business and losses in other services, while the post office network remained unprofitable. SingPost is streamlining its operations to reduce its cost base, including reintegrating its international cross-border business into the Singapore business, to achieve synergies and efficiencies. It will also reset its strategy of its Australian logistics business post-sale. Still, given the smallish Singapore market and the competitive cross-border business, as well as the secular decline of the postal business, there is arguably a limit to what SingPost can achieve in terms of top line and bottom line. Meanwhile, SingPost's divestment of non-core assets, including its headquarters building SingPost Centre, remains on the cards. Non-core assets might not be central to or key pillars of a firm's main businesses, but they do have their usefulness and a place in the portfolio at times, as seen in SingPost's latest financial results. Its property segment raked in full-year operating profit of S$48.4 million – 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. SingPost Centre, for example, recorded increased rental income amid a higher overall occupancy rate of 98.2 per cent as at Mar 31, compared to 96.2 per cent as at end-FY2024. The retail mall was fully occupied compared to 99.6 per cent previously, while the office space occupancy rate rose to 97.6 per cent from 94.8 per cent. SingPost's directors' bid to unlock value for shareholders – through various means such as selling non-core assets – is commendable. But it would likely be saddled with non-remarkable domestic and international postal and logistics businesses before its reset strategy becomes fruitful. Surely, SingPost would like to have a stable and supportive base of shareholders, not the opportunistic who swoop on the stock on news of potential disposal gains and dump it after reaping the capital gain. The group on Wednesday (May 21) announced chairman-designate Teo Swee Lian will helm the board from the next annual general meeting, and appointed several new directors recently. The board and shareholders might want to reconsider selling SingPost Centre, at least not before its reset strategy bears fruit.
Yahoo
18-05-2025
- Business
- Yahoo
Singapore Post Full Year 2025 Earnings: EPS Beats Expectations, Revenues Lag
Revenue: S$813.7m (down 52% from FY 2024). Net income: S$230.3m (up 242% from FY 2024). Profit margin: 28% (up from 4.0% in FY 2024). EPS: S$0.098 (up from S$0.03 in FY 2024). We've discovered 2 warning signs about Singapore Post. View them for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue missed analyst estimates by 59%. Earnings per share (EPS) exceeded analyst estimates. Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 7.3% growth forecast for the Logistics industry in Asia. Performance of the market in Singapore. The company's shares are down 8.0% from a week ago. Before you take the next step you should know about the 2 warning signs for Singapore Post (1 is concerning!) that we have uncovered. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
