SINGAPORE: Singapore Post (SingPost) will be increasing the postage rate for standard regular mail from 31 cents to 51 cents - an almost 65 per cent increase - amid rising costs and declining mail volume.
The 20-cent increase reflects the "escalating costs of maintaining the postal service", Singpost said in its media release on Tuesday (Sep 19).
The new postage rates will take effect from Oct 9 this year.
SingPost added that it will issue a first local stamp booklet of 10 stamps to each household to help manage the postage increase from the end of October.
The last significant rate increase was nine years ago in 2014 when rates were increased from 22 cents to 30 cents, according to Singpost.
In addition, SingPost also said that it will simplify the domestic postage rate structure, "including the elimination of the weight criteria, to make postal services more user-friendly, enhancing the customer experience and provide greater convenience".
This will apply to weight tiers for its Untracked Mail services.
RATE INCREASE "NECESSARY"
Singpost said the rate increment is necessary for it to "continue serving its obligations as Singapore’s public postal licensee".
The adjustment will help address costlier labour, utilities, fuel, and higher conveyance expenses, it added.
It will also help cushion the loss caused by the "persistent decline in postal volumes".
The global structural decline in postal volumes over the last decade brought about by digital disruption has impacted the commercial viability of postal firms globally, noted Singpost.
"Between FY2018/19 and FY2022/23, mail volumes declined by more than 40 per cent."
SingPost chief executive officer, Ms Neo Su Yin said the group has been absorbing inflationary costs and kept its postage rates constant since 2014.
"With the intensifying cost pressures and challenging business landscape, it is inevitable that we raise our prices to remain commercially sustainable so that we can continue providing the essential postal service for the nation," she said.
Singpost also said in its media release that the rate increase will also allow it to to further explore a more sustainable postal business model in the long term, balancing the need to remain viable while safeguarding the interests of its shareholders.
The group said that it remains committed to "provid...