SingPost unveils 5-pronged strategy for growth

The company plans to execute the initiatives in the next three years.

Singapore Post Limited (SingPost) has unveiled five initiatives to be executed over the next three years to unlock growth and shareholder value.

The initiatives were born from its strategic review, which it initiated in May 2023 and completed recently.

First in its list of initiatives is reorganisation. “The group will be reorganised into three business units Singapore, Australia, and International. Each business unit will have the agility and empowerment to operate in their markets, to develop market leadership and build on their core capabilities according to their strategies,” SingPost said.

To manage its capital strategically, SingPost will adopt a dividend policy of paying out between 30% and 50% of underlying net profit in FY24/25, amongst others.

“The Board believes this is a balanced policy taking into consideration the capital needs of the enterprise and sustainable returns to shareholders,” SingPost said.

The company will also re-engineer its postal network to be best-in-class in services, efficiency and sustainability to transform urban logistics and deliveries in Singapore.

SingPost also has plans to scale its business in Australia by leveraging its asset-light hybrid 4PL and 3PL capabilities.

“The group will explore near-term partnerships that contribute to growth, provide equity to deleverage acquisition debt and establish an independent valuation benchmark,” SingPost said.

Lastly, SingPost will explore options across key geographies to enhance its eCommerce supply chain network, expanding the hubs in Singapore, Hong Kong and Europe.