The new rate, up from the current 31 cents, reflects "the escalating costs of maintaining the postal service", SingPost said in its press release.
The last significant rate increment was nine years ago in 2014 when postage was increased from 22 cents to 30 cents.
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There will also be upcoming changes to simplify the domestic postage rate structure, including the elimination of the weight criteria, SingPost said. To help manage the postage increase, SingPost will issue a 1st Local stamp booklet (10 stamps) to each household starting from end-October.
SingPost said that this rate increment is necessary to continue serving its obligations as Singapore's public postal licensee "while allowing further exploration of a more sustainable postal business model in the long term, balancing the need to remain viable while safeguarding the interests of its shareholders".
“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,” SingPost added.
Between FY2018/19 and FY2022/23, mail volumes has declined by more than 40 per cent. "This rate adjustment will help address the loss caused by the persistent decline in postal volumes coupled with costlier labour, utilities, fuel, and higher conveyance expenses," it said.
SingPost has been absorbing costs
Neo Su Yin, Chief Executive Officer Singapore, SingPost said SingPost has been absorbing inflationary costs and "essentially kept our 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. We are also focused on pursuing our strategic transformation towards eCommerce and logistics to mitigate the persistent decline in postal volumes and explore business growth opportunities," Neo said.
SingPost is also working closely with the Infocomm Media Development Authority to conduct a structural review of the postal business and formulate a longer-term strategy to attain commercial sustainability.