Senior Minister of State for Communications and Information Tan Kiat How said IMDA will work further with SingPost on a 'fundamental review' of the future of Singapore’s postal service, given the rise of logistics and e-commerce players.
SINGAPORE: With more people opting to communicate online instead of through letters, the government will consider allowing Singapore Post to “introduce postage rate adjustments” in the future, said Senior Minister of State for Communications and Information Tan Kiat How on Wednesday .
In his response, Mr Tan noted that domestic postal rates have largely remained unchanged since 2014, apart fromSingPost has raised postage, package delivery and doorstep parcel delivery rates in tandem with the increase in Goods and Services Tax from 7 per cent to 8 per cent, as well as inflationary cost increases across manpower, fuel, and electricity.
Domestic letter volumes have fallen from around 490 million letters in the financial year 2015 to 260 million in the financial year 2022. “IMDA will also review the current postal service obligations to ensure that they remain relevant in today's highly digitalised context, especially given the many alternative electronic communication channels available to consumers and businesses," Mr Tan said.
“I will just assure that … the context of the costs, overheads; context of the postal rate adjustments; context of the declining volume and the operating environment, will be considered as part of these discussions,” he said.
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