SingPost’s postage rates are affordable despite price hike
I refer to Mr Tan Beng Guan’s letter, ‘SingPost’s postage hike is not justifiable when it is making profit’ (ST Online Forum, 21 Nov 06).
In 2004, when the Goods and Services Tax (GST) was increased to 5 per cent, SingPost adjusted its domestic postage rates by one cent for only the 20g and 40g weight-steps to offset the increase in tax.
The last time domestic postage rates were increased was 11 years ago, in 1995. Throughout the years, SingPost has managed to maintain the postage rates by putting in place various measures to mitigate rising labour and fuel costs, including enhancing staff productivity and optimizing schedules and routes.
Over the past 11 years, operating costs, mainly manpower and fuel costs, have continued to rise.
Although SingPost has invested in automation in sorting and processing of mail to help reduce manpower costs, mail delivery is still highly labour-intensive.
Manpower costs have increased more than 40 per cent. Distribution costs arising from collection and delivery of mail have risen more than 200 per cent, due mainly to fuel price increases.
Additionally, for international mail, terminal dues or international settlement rates between countries have risen significantly.
As a listed company with responsibilities to its shareholders, SingPost has to ensure that its business is viable and that it continues to grow, both for the benefit of shareholders and customers.
SingPost embarked on a diversification strategy several years ago, leveraging on its core competencies and extensive retail network. This strategy is bearing fruit, with new businesses contributing to the overall growth of the company.
In our recent second quarter results, contributions from non-mail business and the one-off sale of a non-core property boosted our net profit. Excluding the sale, we registered an underlying net profit growth of 4 per cent.
Specifically in the mail business, public mail volumes have continued to decline as a result of e-substitution. However, SingPost has managed to offset the decline by focusing on growing direct mail which includes advertising mail. As a result, it managed to grow mail revenue by 1.7 per cent.
SingPost is mindful of its responsibility to the public. As a basic service provider, it takes care to ensure that its postage rates remain affordable and that it continues to provide a high level of service.
In spite of the increase, Singapore’s domestic rates are still among the lowest in countries of comparable economies.
Tay Poh Choo (Ms)
Vice President (Corporate Communications/Customer Service)
Singapore Post Limited
Doesn’t it sound familiar?
Every time we complain about a hike, be it public transport fares or some other shit, the excuses given are always the same.
Must have been some kind of template with a random generator to throw out the follow standard responses: ‘We haven’t done so for donkey years.’ ‘We need to ensure we are profitable.’ ‘Our costs have gone up.’
Is it MY problem if your total operating costs have gone up?! It is your duty to look into keeping your costs down! That’s not mentioning you are profitable now! And if you hasn’t gone for a raise for years, and allegedly absorbed some of the GST, am I supposed to be grateful for that?! It’s not like the absorbed GST is given as some kind of rebates to me!!
Why do we continue to put up with this crap and allow this selfish practice to persist?
The reason is damned simple. Because it is a small loss spread over a large number of people to make it unprofitable for each individual to fight back. After all, the cost needed to fight this will probably cost more than the amount of increase they will suffer individually. Above which, this country doesn’t have the system – be it laws or NGOs – in place to protect the individual, unlike the United States.
CASE in Singapore is a kriffing mofo joke!!
Thank you, 66.6%.