Tuesday, September 2, 2014

Postage To Raise In October, What Are The Potential Implication?

If you have not already know, SingPost has just announced that they are going to raise the postage rates (for both local and international) from October this year. For local rates, the raise is in the range of 4 to 20 cents while for the international rates, the raise is in the range of 5 to 25 cents, depending on the weight.

So, what is the potential implication? 

For a normal consumer, I guess there is not much impact as presently we are relying more on social media, messaging services and email for the communication. However, if you are an investor, you may want to consider the following potential effect :

1. SingPost's revenue from mailing service is expected to raise from next year onward. Good sign?!

2. Certain industry like eCommerce (which rely on postal service to deliver the physical goods) might be greatly impacted by this as such their operating cost is expected to raise quite a bit. (I am assuming that the postage cost for parcels is to be raised too)

3. As SingPost has not raise the postage rates for the past 8 years, with this announcement, its direct and indirect competitors (e.g. DHL, FedExpress etc..) might take the opportunity to review their charges too (if they have not already done so). 



  1. Time to stock up on the postage while they're still at the old rate!

    For the infinitely frugal.

    1. Lizardo, unless you intend to use all of them before the implementation date, else it might not be helpful (unless you are talking about those standard local airmail stamp)

  2. If the practice is the same as in the past, the old local mail stamps can still be used even if the new ones are introduced. There is no value printed on those.

    1. Ya, maybe those local generic stamp (without value) will still be usable even after the rate increase


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