While electronic mail (e-mail) has become ubiquitous in our daily interactions, we continue to rely on physical documents for official correspondence. Whether it’s government communication letters, bank notices, or our personal letters to one another, demand for postal services is ever-present. Furthermore, with a network of around 57 post offices and 743 street posting boxes all around Singapore, sending basic mail locally is not only convenient but also fast, with letters delivered within two working days.
This is all made possible by our national postal operator, SingPost (SGX:S08), which has been listed on the Singapore Exchange (SGX) since May 2003. With its history dating back to as far as 1819 under the British East India Company, SingPost has not only transformed its postal services but has also pivoted to being a multifaceted logistics and e-commerce solutions provider in recent years.
Here are 5 things to know about SingPost if you’re interested in postal and logistics businesses.
SingPost is a Logistics provider, could you elaborate on the products/services that you provide for clients?
SingPost’s International business revolves around global connectivity, much like Singapore’s role as a thriving global trade hub. Leveraging on our extensive global postal network and commercial partnerships, we offer international cross-border eCommerce logistics solutions.
In Australia, our logistics business caters to both business-to-business (B2B) and business-to-consumer (B2C) segments, providing digitally enabled fourth party logistics (4PL) supply chain solutions, as well as third party logistics (3PL) and last mile delivery solutions. Our subsidiaries in Australia includes FMH (a leading 4PL operator in Australia with its 4PL solutions for B2B clients powered by a digitally enabled platform) and CouriersPlease (last mile courier service provider with an extensive network covering over 90% of the population).
In Singapore, SingPost is the national postal operator, providing essential postal service to the nation.
What are some of the Group’s potential catalysts that investors can be excited about in the near term of 1 to 2 years?
With the foundation of SingPost’s transformation into a Logistics business in place, we are currently undertaking strategic review of the Group’s structure and portfolio of businesses, with a view to enhancing shareholder returns and ensuring the Group is appropriately valued.
Sustainability and ESG have increasingly been a key focus, how is SingPost committed towards sustainability?
We remain committed to and guided by the Group’s purpose of Making Every Delivery Count for People and Planet and are positioning the Group for sustainable growth for the long term. We view sustainability as a key differentiating factor that can give us a strong competitive advantage.
We have set targets to achieve net-zero carbon emissions:
- Scope 1 and 2 for our operations in Singapore by 2030; and
- Scope 1, 2 and 3 for our global operations by 2050.
In our Singapore business, delivery to the letterbox through our postal infrastructure has a much lower carbon footprint compared to individual doorstep deliveries. We have embarked on various decarbonisation initiatives to reduce carbon footprint, improve operational efficiencies and lower utilities cost. These initiatives include solar panel installation at our eCommerce Logistics Hub and electrification of the delivery fleet.
In addition, there is opportunity for us to lead and offer commercial sustainability products and solutions, and we are working to do so over the next few years.
Various sustainability pathways are being explored in the different markets. With investment in sustainability initiatives, we expect to achieve:
- operational efficiency which will result in longer term savings and/or returns on investment; and
- business growth as we tap on opportunities, as we see increased demand by our customers.
To what extent is the Group capitalising on new norms and trends that could be game-changers for it in the future?
The future of our logistics is technology driven. In Australia, we have in FMH our proprietary cutting-edge digitally-enabled platform that has underpinned the strong growth of the 4PL business there. Upgraded capabilities are being rolled out, offering greater analytics insights and more tools for operational excellence. We see the future for the International business powered by technology like in Australia.
The growing global eCommerce market allows us to continue to build and leverage on our extensive global postal network and commercial partnerships as we offer international cross-border eCommerce logistics solutions to all our customers around the world.
What is SingPost’s value proposition to its shareholders and potential investors? What do you think investors have overlooked?
We hope to highlight the transformation of SingPost in the recent years. SingPost has transformed from being a predominantly postal business into a logistics business over the last four years. Logistics has grown its share of the business from 38% in FY19/20 to 70% in FY22/23.
In addition, SingPost has evolved from being Singapore centric to an international business with 86% of revenue now derived outside of Singapore.
Editor’s Note: Some answers for this article were extracted from the SGX 10 in 10 series published on 1 August 2023 and have been republished with permission. You can read more on SingPost (SGX Code: S08) on the SGX website.