Singapore: SingPost to raise postage rates, cites cost increases
SINGAPORE POST (SingPost) announced it would be raising postage, package and doorstep parcel delivery rates starting Jan 1, 2023.
This is in line with the goods and services tax (GST) hikes announced by the government in February this year, as well as “exceptional inflationary cost increases across manpower, fuel and electricity”, said the group in a bourse filing on Friday (Dec 16).
For standard regular basic mail and untracked mail which go into letterboxes, rates for the first two weight steps of 20g and 40g will be raised from 30 Singapore cents and 37 Singapore cents to 31 Singapore cents and 38 Singapore cents respectively from Jan 1.
The associated first and second local stamps will cost 31 Singapore cents and 38 Singapore cents starting next year, and subsequently raised to 32 Singapore cents and 39 Singapore cents from Jan 1, 2024.
Customers holding existing first and second local stamps may continue using these stamps after Jan 1, 2023, and Jan 1, 2024, without having to top up the difference in postage. GST is not and will not be applied on these mail services, said SingPost.
Tracked mail services, now priced between S$2.55 and S$3.40, will cost five Singapore cents more in 2023 for items weighing up to 20g. The same increment will apply for items weighing up to 40g, but this will apply only on Jan 1, 2024.
Items weighing up to 100g, 250g and 500g will see annual increments of five Singapore cents respectively from 2023 to 2024.
Additionally, the registered service fee for local mailings will be revised from S$2.24 to S$2.27 from Jan 1, 2023, and to S$2.30 from Jan 1, 2024. The fee is payable on top of the applicable postage rates.
Small and medium-sized smartpacs will be priced at S$2.20 starting 2023, while a smartpac box will cost S$3.20 in 2023 and S$3.25 in 2024. Smartpacs are postage-paid products which are delivered to the letterbox and trackable from the time they are posted until delivery.
The Speedpost standard delivery fee within Singapore will also be revised from S$6 to S$6.10 from Jan 1, 2023, and to S$6.20 from Jan 1, 2024.
Neo Su Yin, Singapore chief executive of SingPost, said that the company has been bearing the impact of inflationary cost increases across manpower, fuel and electricity.
“The adjustment in rates will help us maintain our service offerings and high service standards, and enable us to operate sustainably with the GST hike.”
Revenue for SingPost’s post and parcel business has been weak. The segment saw a 19.6 per cent decline year-on-year to S$261.7 million for its half-year ended Sep 30. This was partly due to a dip in the volume of domestic letters and parcels, as well as a major customer who had insourced their logistics, said the group in its financial report in November.
SingPost’s shares were up 2 per cent, or S$0.01, at S$0.52 as at 2.31 pm on Friday.