Singapore Post (SingPost) has been ranked seventh out of 173 national postal services in the world by the Universal Postal Union (UPU) for a number of attributes including its reliability, connectivity and adaptability.
The 150-year old Singapore postal service – which was an early mover in the transitioning postal market, pioneering a move into e-commerce logistics – moved up one spot from UPU’s previous 2016 ranking. SingPost also took second spot in Asia Pacific after Japan Post which ranked third globally.
Overall, Switzerland, the Netherlands and Japan topped the 2018 Integrated Index for Postal Development, followed by Germany and France. Within the Asia Pacific region Japan (3), Singapore (7), China (15) and Thailand (17) topped the list with Laos (63), Philippines (64), Myanmar (91) and Cambodia (130) anchoring the bottom end.
The UPS – a United Nations agency that oversees and coordinates the international postal sector across the globe – cited outstanding reliability – with the third highest score globally, as well as reach – a gauge of international connectivity and performance, as SingPost’s greatest strengths. These were matched alongside other criteria that included relevance – a measure of competitiveness; and resilience – a measure of the adaptability of business models.
Paul Coutts, group chief executive officer of SingPost, said: “Being amongst the world’s Top 10 postal services is truly an honour and we are proud to be Asian champions, even as we lead in the transformation of the industry in the region.
“Digitalisation and the rise of the Smart Nation now present exciting opportunities for the business. SingPost’s transformation will ensure we capitalise on this future and continue to connect communities in an eCommerce world.”
SingPost’s score of 78.2 stands tall against the global average of 37.24 across the 173 postal services in the index. First published in 2016, the index draws on postal big data, statistics and surveys to assess the performance of postal organisations across four dimensions of postal development: reliability, reach, relevance and resilience.
In its concluding remarks on the index, the UPU said: “Postal services need to become more agile, responsive and proactive in adapting to the burgeoning demand for delivery capacity in the age of eCommerce.
“The sector is more than just a channel for delivering letters. It underpins every nation’s physical infrastructure… strengthens global value chains and helps boost physical and digital connectivity, thus fulfilling a 150-year-old mission of fostering communication between the inhabitants of the world.”
Today, SingPost is pioneering and leading in e-commerce logistics, as well as providing innovative mail and logistics solutions in Singapore and around the world, with operations in 19 markets.
Meanwhile, SingPost recently released its full year results ended 31 March 2018, which saw revenue for the year increase 8.6 per cent to SGD 1.46 billion (USD 1.09 billion) on growth in e-commerce-related activities across the Postal and Logistics segments.
Net profit attributable to equity holders rose 278.4 per cent to SGD126.4 million, largely due to the absence of one-off impairment charges. Excluding exceptional items, underlying net profit declined 9.2 per cent to SGD 105.0 million. While the eCommerce and Property segments saw improved performance, Logistics and Postal operating profits fell.
Postal revenue rose 15.0 per cent driven by higher e-commerce deliveries while perating profit declined 4.0 per cent with a change in margin mix.
Logistics revenue increased 4.3 per cent across the Group, driven by growth in last mile e-commerce delivery volumes, as well as increased freight forwarding volumes. Operating profit declined as margins were impacted by continued investment in the business, and pricing pressures in North Asia, SingPost said.
Revenue of the e-commerce segment was stable despite the loss of two major customers the prior year, and accelerated by 15.7 per cent in the fourth quarter. Operating loss was reduced by more than 50 per cent on improved performance due to TradeGlobal’s turnaround business plan.
Rental and property-related income increased 29.9 per cent on higher rental income from the SingPost Centre retail mall while cmmitted occupancy rose to 95.6 per cent.
The full 2018 UPU index can be viewed/downloaded here.