Brief Introduction:

Singapore Post Limited (SGX: S08), or SingPost, is Singapore’s leading postal and eCommerce logistics provider. While many know the company for its nationwide postal services, its operations today extend far beyond traditional mail delivery.

The Group provides a comprehensive range of logistics solutions spanning international postal services, cross-border eCommerce logistics, warehousing, fulfilment, last-mile delivery and freight-related services, connecting businesses and consumers across more than 220 destinations worldwide.

Following an organisational restructuring that took effect on 1 April 2025, SingPost now reports its operations under three core business segments:

i. Logistics & Letters: This is the Group’s largest business segment and encompasses the collection, sorting, transportation and delivery of domestic and international mail and parcels. It also includes eCommerce logistics, warehousing, fulfilment, distribution services, as well as selected financial and related services.

ii. Post Office Network: This segment comprises SingPost’s nationwide network of post offices, generating income from agency services, retail product sales and rental of space within its post office network.

iii. Property Assets: This segment manages SingPost’s investment properties, generating recurring rental income and related property services from assets outside of the Post Office Network, including SingPost Centre (SPC).

Summary of SingPost’s Annual Report:

Key Performance Highlights:

• Revenue fell by 23.1% year on year to S$376.1 million, mainly attributed to a 55.2% decrease in International revenue amidst a volatile global macroeconomic environment, alongside a 13.5% structural decline in traditional domestic letter mail volumes. However, this was partially offset by a 8.1% rise in domestic eCommerce revenue, postage revision of 10 cents effective 1 January 2026, and creditable performance in its Property Assets (where overall occupancy reached a near-full of 99.4%).

• Revenue contribution for each business segment is as follows: Logistics & Letters contributing 77%, Property Assets contributing 21%, and Post Office Network contributing the remaining 2%.

• Reflecting the softer international volumes, operating profit tumbled by 68.9% year on year to S$11.8 million.

• Underlying net profit stood at S$10.1 million, while net profit was S$60.9 million, boosted by exceptional items (of $19.2 million, composing largely of a fair value gain on investment properties and a gain on the disposal of subsidiaries) and derecognition of aged trade payables (which stood at S$10.7 million).

• Dividend payout for FY2025/26 amounted to 0.47 cents per share, comprising of a first and final dividend payout of 0.06 cents/share, and a supplemental dividend of 0.41 cents/share, derived from the net-of-tax derecognition of aged trade receivables (where following a comprehensive review of accounting guidelines and processes concerning international settlements with overseas postal administrators, the Group derecognised S$38.1 million in aged trade receivables that remain unclaimed over 7 years).

Board Renewal & Leadership Appointments:

• Following SingPost’s last AGM in July 2025, the Board was reconstituted to bring together expertise across global logistics, finance, digital technology, and corporate governance.

• The diverse range of skills and experience strengthens the Board’s ability to provide effective oversight as SingPost navigates a complex operational shift.

• Effective 1 November 2025, the Board appointed Mark Chong as the new CEO. He was chosen for his extensive international track record in large-scale transformations and corporate operations, giving him a clear mandate to lead SingPost’s next chapter.

Strengthening of Financial Position:

• Board endorsed major strategic initiatives designed to improve capital efficiency and recycle proceeds towards core strategic priorities. 

• Key milestones achieved during the financial year include the sale of 10 HDB Post Office shophouses for S$55.5 million, sale of 4PX and cessation of the Quantum Solutions JV (from the unwinding of Alibaba Group cross-shareholdings), along with the divestment of freight forwarding business Famous Holdings Group (for approximately S$180.9 million and realised a gain on disposal of S$6.5 million), and various regional Quantum Solutions entities. 

• The moves placed SingPost in a strong net cash position as it moves into the new financial plans, enhancing its liquidity and providing the necessary reserves to fund growth plans.

Strategic Priorities Set by the Board Across SingPost’s 3 Operating Segments:

• Logistics & Letters: The Group is transitioning to a more efficient, scalable operating model (which includes streamlining workflows, leveraging AI to enhance route optimisation, strengthening automation capabilities, and improving systems integration across the business) to reduce the cost of service by more than 10%.

• Post Office Network: The objective is to modernise SingPost’s physical network into a self-sufficient, fit-for-purpose operation on a firm path towards commercial sustainability, such as Self-Service Automation (with the introduction of 24/7 drop-off kiosks and Autolobbies to provide uninterrupted public access for parcel shipping, buying stamps, and bill payments), Fit-for-Purpose Footprint (through a dynamic mix of roughly 40 manned and unmanned touchpoint, leveraging an asset-light model to lower the cost to serve and expanding service reach), and Commercial Diversification & Optimisation (where SingPost will actively expand its retail ecosystem by offering a wider range of retail services and goods such as consumer electronics). 

• Property Assets: SPC is uniquely positioned to capture significant value-unlocking opportunities, such as potential building height restriction uplifts and property re-zoning parameters, following the relocation of the Paya Lebar Airbase from the 2030s onwards. For its other assets, including post office shophouses and delivery bases, they are being actively reviewed to maximise yield such as partial leasing to 3rd parties, or repurposing for alternative long-term growth opportunities.

Initiatives in Each Business Segment:

i. Logistics & Letters: 

• The Group deepened collaborations with SkyNet Worldwide Express (on 01 January 2026, and this expanded SingPost’s cross-border logistics capabilities across more than 180 countries and territories), DHL Express (from 14 outlets in March 2025, DHL Express services were progressively extended across SingPost’s full islandwide network to bring convenient international shipping access points closers to homes and workplaces, and strengthen commercial utility of post office network beyond traditional parcel services) and FedEx (launched in September 2023 at selected POPStop counters, and later expanded to all SingPost post offices nationwide and at POPStop@Tampines MRT, where parcels are consolidated and transferred to FedEx daily, this provided customers with the convenience to drop off FedEx parcels) to reinforce its position as a trusted logistics partner with strong international connectivity. 

• Implementation of the 10 cents domestic postage from January 2026 ensures continued sustainability of essential postal services amid rising operating costs and structural changes in mail demand.

• Commencement of autonomous vehicle trials with Zelostech (following a memorandum of understanding signed in December 2025), including pilot deployments within its Regional eCommerce Logistics Hub. This initiative aims to improve material flow and operational efficiency.

• Notably for shipments to the US, SingPost launched SpeedPost Direct International (SDI) to help customers comply with new requirements introduced in September 2025, including 10-digit HS code declarations and import surcharges. This is on top of the Group extending SDI to retail customers via its post office network, allowing customers to send parcels to the US using standardised packaging options at flat shipping rates, simplifying the process for everyday users.

• This is on top of the SingPost@MyBlock initiative, which allowed 24/7 mail and small parcel posting at residents’ letterbox nests, with a broader rollout planned from July 2026. It also strengthened its last-mile ecosystem through its collaboration with the government’s Pick Network.

ii. Post Office Network:

• It is increasingly serving as a critical node in the logistics value chain, bridging the gap between traditional mail and eCommerce – a significant development during the year was the expansion of partnership with Cheers, enabling the Group to extend its reach through POPStop counters and parcel collection points within Cheers outlets, providing customers with greater flexibility for parcel drop-offs and returns outside of traditional post office hours.

• This is on top of the partnership with DHL Express and FedEx parcel drop off services, which provides customers with convenient access to international shipping services closer to their homes and workplaces. 

• Total number of customer touchpoint have grown to about 2,500 nationwide, integrating physical post offices with an extensive network of parcel lockers and partner collection points.

iii. Property Assets:

• Proposed disposal of 10 HDB Post Office shophouses for an aggregate consideration of S$55.5 million, which is still pending HDB’s approval as at 31 March 2026. Following the completion, the properties will be leased back for an average period of about 3 years. This move allows SingPost to unlock capital, and at the same time, retain its operational presence across the Post Office Network. Proceeds from divestment will be used to support reinvestment into core logistics capabilities, aligning capital allocation with long-term strategic priorities.

• – SingPost Centre’s office occupancy increased to 99.1% (supported by new tenants including BYD by 1826, Hellmann Worldwide Logistics, and NCR Asia Pacific), and retail occupancy remained at 100%.

3 Clear Priorities to Address SingPost’s Structural Challenges:

• Strengthen Core Fundamentals: SingPost’s investment of S$30 million in a new parcel sortation system will increase its processing capacity to 400,000 parcels a day when it goes live in July 2026, supporting its goal to cut its cost-to-serve by more than 10% in Logistics & Letters, and at the same time, enable the consolidation of regional parcel processing at its Regional eCommerce Logistics Hub, increasing operational efficiencies.

• Build Scalable Capabilities: SingPost is investing in IT, customer experience, and automation. Examples include autonomous vehicles, provision of Autolobbies in its post offices and optimising its footprint, all of which will enable the Group to achieve commercial sustainability.

• Capture Growth Opportunities: SingPost is expanding its business beyond eCommerce to unlock new revenue streams, taking advantage of the fact that they own close to 1 million square feet of industrial space, operate Singapore’s largest postal and logistics fleet, as well as being the only logistics player that touches the letterbox of every home every working day.

SingPost’s Position on SPC:

• SPC remains a source of steady cash flow and contributors to the Property Assets segment’s operating profit of S$45.2 million in FY2025/26.

• Management is positioning SPC to capture the value from the rejuvenation of Paya Lebar, as the relocation of the Paya Lebar Airbase from the 2030s and the expected lifting of height restrictions present a unique opportunity for redevelopment, unlocking significant value.

• In the meantime, an architect has been appointed to review asset enhancement opportunities to improve rental yield and increase rental income.

SingPost’s Sustainability Framework:

• Cherishing Our Planet: SingPost has made measurable progress in reducing its environmental footprint, including the successful electrification of 60% of its domestic delivery fleet, and the implementation of a strict Green Procurement Policy to govern sourcing decisions across its operations.

• Culture of Trust: SingPost has maintained the highest standards of governance and had no recorded incidents of corruption, fraud, or unethical behaviour during the year; this is on top of progress being made in leadership diversity, with women now representing 36% of its senior management team.

• Cultivating Our Communities: Today, 80% of Singapore’s population remains within a 10-minute walk of a SingPost touchpoint, ensuring public accessibility and that the Group stays part of the nation’s social fabric.

SingPost’s Sustainability Initiatives:

• Through its collaboration with DHL Express, customers are provided access to emission-reduced international shipping options, including participation in initiatives such as sustainable aviation fuel programmes, which support reducing greenhouse gas emissions associated with air freight while maintaining service reliability and efficiency.

• Customers are offered more sustainable packaging options, including fully recyclable materials sourced from responsibly managed forests, supporting more environmentally conscious shipping practices.

The Future of SingPost:

• The future SingPost will be smart, lean, efficient, and more creative in its service delivery to customers, partners, and stakeholders in Singapore and across the globe.

• The Group will be poised to capture emerging opportunities across logistics, retail service, and property assets.

• With a clearer course, stronger operational discipline, and renewed investment in future capabilities, SingPost is positioning itself not only to navigate industry changes but to thrive in them.

Details of SingPost’s 34th AGM:

Date: Thursday, 23 July 2026
Time: 2.30pm
Venue: Suntec Singapore Convention & Exhibition Centre, Level 3, Summit 1, 1 Raffles Boulevard, Suntec City, Singapore 039593

The upcoming AGM will be held in a wholly physical format, with no options for shareholders to participate virtually. 

If you have any questions for the management, you may either raise them during the AGM in person, or submit them via email before 5pm on 10 July 2026 to AGM@singpost.com.

Closing Thoughts:

When discussing SingPost, many investors tend to focus on SPC, with the common perception being that it does much of the ‘heavy lifting’ for the Group’s financial performance. While there is certainly some truth to this, it is worth noting that the Property Assets segment contributed only 21% of the Group’s total revenue in FY2025/26. Moreover, this segment comprises not only SPC, but also the Group’s other investment properties.

As such, even if management succeeds in further unlocking the value of SPC through future redevelopment opportunities following the relocation of the Paya Lebar Air Base, or improves rental income through asset enhancement initiatives, these alone are unlikely to fundamentally change the Group’s overall financial performance.

Instead, the key lies within the Logistics & Letters segment, which contributed approximately 77% of the Group’s revenue during the financial year. For SingPost to return to meaningful earnings growth and potentially increase its ordinary dividend over time, this core business will need to deliver stronger revenue growth while improving operating margins.

Encouragingly, management has rolled out several initiatives to strengthen this segment. These include expanding collaborations with DHL Express, FedEx and SkyNet Worldwide Express to enhance international connectivity, extending parcel collection and return services through Cheers outlets, broadening the SingPost@MyBlock initiative, and continuing to strengthen its role within Singapore’s Pick Network. Collectively, these initiatives should support higher parcel volumes while making SingPost’s nationwide network more commercially relevant in an increasingly eCommerce-driven environment.

Equally important is the Group’s ongoing drive to improve operational efficiency. The new parcel sortation system at its Regional eCommerce Logistics Hub, which is expected to commence operations in July 2026, will increase processing capacity to 400,000 parcels per day. Together with greater automation, AI-driven route optimisation and systems integration, management expects these initiatives to reduce the Logistics & Letters segment’s cost-to-serve by more than 10%. If successfully executed, this should translate into improved gross margins and operating profitability over the medium term.

Finally, investors should pay close attention to the strategic direction under the Group’s refreshed leadership. Following the appointment of Mr Mark Chong as CEO in November 2025, together with the reconstitution of SingPost’s Board, the Group has articulated clear strategic priorities across all 3 business segments while significantly strengthening its balance sheet through various asset divestments. 

In my opinion, foundations for a turnaround appear to be in place, but ultimately, the success of the strategy will depend on management’s ability to consistently execute its transformation plans and translate them into sustained improvements in earnings and shareholder returns over the coming quarters.

Related Documents:

Annual Report
Sustainability Report
Notice of AGM
Letter to Shareholders
Proxy Form

Disclaimer: At the time of writing, I do not have shares of Singapore Post Limited.

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