SingPost service lapses: MPs’ questions answered

SINGAPORE — SingPost’s series of service lapses prompted a barrage of questions from several Members of Parliament in Monday’s (Feb 11) parliament session. Among other things, they wanted to know why SingPost was fined only S$100,000 for its failure to meet delivery standards on nine occasions in 2017, and whether the Government is considering alternative delivery systems. Here is a summary of their questions and the answers given by Senior Minister of State for Culture, Community and Youth Sim Ann.

Nee Soon GRC MP Lee Bee Wah

There is only one postal service company in Singapore, and it is providing “essential service”. How can the Government ensure they do not become complacent?

Under the current framework, Ms Sim said there is only one public postal licensee which is SingPost. However, they are not the only ones who are licensed to deliver basic letters. There are three other companies: Asendia, World Marketing Group and DHL.

Apart from delivering letters, SingPost is required to maintain a set of universal service obligations, including:

• Maintenance of post boxes

• Issuance of stamps

• Delivering of basic letters to and from anyone in Singapore

As for the delivery of parcels, she said “this is a very open and competitive segment” with many companies doing parcel and door-to-door delivery.

SingPost was found to have many lapses in 2017. Failing short can result in a fine of up to S$50,000 a month for each indicator. Why were they only fined S$100,000? Is a fine alone a sufficient deterrent?

Under the Quality of Service (QoS) framework, Ms Sim said that the Info-communications Media Development Authority (IMDA) has the discretion to decide the financial penalty to levy for each count of failing the QoS.

In terms of determining the actual quantum per count, IMDA takes into account aggravating factors such as repeated failures, as well as mitigating factors such as whether the delay time is longer or shorter.

“We agree with Engineer Dr Lee that relying on fines is not sufficient…Regulatory actions are ongoing (and) more can be expected by the IMDA in the coming months,” said Ms Sim.

Other measures also need to be taken and Ms Sim said she is glad to see that SingPost has “owned the issue” and announced steps in the right direction, such as extending its delivery hours and relooking the remuneration for its workforce.

The use of technology must also continue, said Ms Sim. This is something that IMDA has been in constant discussion with SingPost on. “In fact, in previous years, (they) have also required SingPost to take on technological upgrades so its postal workforce can do their job better.”

During a visit to SingPost’s Woodlands distribution centre, Dr Lee discovered that there was a shortage of postmen serving Yishun. There were supposed to be more than 40, but in reality there were only 30. Worried that this would lead to an overworked postal service, which could lead to other consequences, she asked: When will SingPost increase the number of postmen?

Ms Sim pointed to SingPost’s recent announcement of its plans to hire more postmen, which she said meant that there are vacancies.

“We believe that with SingPost’s intention to review remuneration for the staff... these vacancies will be easier to fill than they currently are now,” she said.

The Government is also concerned about the well-being of the postal workforce, Ms Sim added. As such, it is a priority of her ministry and the IMDA to monitor SingPost to ensure the workforce is adequately trained and prepared for the job they have to do.

Jurong GRC MP Ang Wei Neng

In the last financial year, 90 per cent of SingPost’s profits came from the postal service. Is it a case that SingPost is under-investing in its postal service, while taking the money to diversify its business elsewhere?

Ms Sim declined to comment on this, saying that it was a question shareholders should pose to SingPost.

Instead, she said that Singapore needs to be cognisant of the steps SingPost is taking — paying more attention to the postal workforce and extending delivery hours.

“I think those steps are indicative of SingPost’s own diagnosis of what the problem is,” she said.

MP for Jalan Besar GRC Denise Phua

Is the ministry considering alternative delivery systems and agents? For instance, in the Central Community Development Council (CDC), senior citizens are employed to drop mail in their locality. There is a good potential to create interim jobs for seniors, graduates of special education schools and others to give them opportunities for better health and some pocket money.

Ms Sim said that she intends to ask IMDA to work with the CDC to understand its scheme and how it can improve the postal service.

But there are other solutions, with Ms Sim highlighting that locker trials have been ongoing in Bukit Panjang and Punggol under the Locker Alliance, which SingPost is also a part of.

“This is a trial... to see if there can be better solutions for the last mile delivery of parcels that are too large to fit into letter boxes.”