SingPost shutters 12 post offices in 2 years and pivots to new service model as fewer consumers use mail

SINGAPORE — National postal service provider Singapore Post has closed 12 post offices, or one out of five branches, in the last two years.

This comes as the company struggles with declining mail volumes as most turn to electronic communication instead.

Five of the shuttered post office branches were in malls, including Suntec City, Northpoint City and Westgate, while the rest were either standalone branches or found in community clubs, office buildings or Housing Board blocks. SingPost has 44 post offices remaining.

A SingPost spokesperson told The Straits Times that adjustments will be made to some post offices and locations to ensure postal services remain cost-effective and relevant.

This is part of business transformation efforts to meet evolving consumer demands in a rapidly changing digital landscape, she said.

One of the most recent branches to cease operations was the one at The Clementi Mall, which had operated for 11 years before it closed on Sept 20. The nearest alternative branch is a 15-minute bus trip away — in Clementi West Street 2, near West Coast Plaza.

The Clementi Mall branch was quiet with only a few customers when ST visited on its last day.

Assistant branch manager Nurliani Jalaini, who had worked there for all 11 years of the branch’s history, told ST she would be redeployed to the Jurong Point branch.

"I had been telling regular customers to come see us before the outlet closes," said the 39-year-old. "I will miss my colleagues and the customers."

Her colleague, 44-year-old assistant branch manager Melissa Ayla, who had also worked there for 11 years, was taking videos and photos of the post office. She has since been posted to the Pasir Panjang branch.

"Some of my customers have become friends. We even had lunch together," she said.

Also at the branch was retired banker and stamp collector Hong Tuck Koon, 71, who has been visiting all the post office branches on their last day of operations, was also at the branch.

He was mailing 66 letters to himself so that he can keep the postmark, which is unique to each outlet. He started collecting stamps around the age of 10.

"It’s sad because it’s a reflection of the declining importance of the post for many, who send e-mails and WhatsApp messages now," said the Serangoon Gardens resident. "There’s nothing that can replace the personal touch from sending personal letters and cards."

While SingPost is rationalising the number of standalone post offices, it has said it will expand other customer service touchpoints.

Its POPStation or parcel locker network is found at over 100 locations and more than 300 condominiums.

POPStop, a drop-off service for e-commerce shipping and returns, is in all post offices, with the first standalone POPStop set up at Tampines MRT station in March. SingPost is also expanding the service to heartland stores equipped to receive parcels on its behalf.

It also has POPDrop, a self-service drop-off box where customers can pay bills and purchase shipping labels. The first is located at the General Post Office at SingPost Centre in Paya Lebar, with more to come.

"Together with our existing post office network in key locations, our goal is to create a comprehensive network of accessible touchpoints that deliver essential postal services to the community while ensuring operational relevance," said the SingPost spokesperson.

SingPost Group on Aug 16 reported a first-quarter operating profit of $24.4 million. This was 105.2 per cent higher than $11.9 million in the corresponding period the previous year. Its revenue rose 22.4 per cent on the year to $494.8 million, from $404.1 million previously.

The group said the rise in revenue was supported by growth in its Australia and Singapore businesses, even as letter mail volumes continued to fall and the post office network remained in the red. Letter mail and printed paper volumes in Singapore fell 8.1 per cent on the year to 87.8 million items, from 95.6 million items.

The speed and scale of digitalisation has led to a sharp decline in domestic letter volumes.

In July 2023, Senior Minister of State for Digital Development and Information Tan Kiat How told Parliament that businesses account for more than 80 per cent of mail users, and an average consumer sends fewer than one letter per month. Most government agencies have also digitalised and are communicating with citizens through online channels.

Tan added that the Infocomm Media Development Authority, the postal regulator, would examine current postal service obligations to ensure they remain relevant in today’s context.

To cover some costs amid SingPost’s continuing obligations to the nation, the postage rate for standard letter mail increased from 31 cents to 51 cents from October 2023. It was the first substantive increase since 2014.

Sobhika Mohan Sheila, who was at the post office at The Clementi Mall on Sept 20, said she did not know it was its last day.

The 30-year-old nurse and Jurong East resident, who was there to send clothes to relatives in India, said: "It’s sad. The customers, including the older ones, may have to travel farther to other places."

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This article was first published in The Straits Times. Permission required for reproduction.