Singapore Post (SingPost) has been fined S$100,000 by the Infocomm Media Development Authority (IMDA) for not meeting the service standards for delivering local basic letters and registered mail in 2017.
Under IMDA standards, SingPost must deliver 99% of local letters to addresses within the Central Business District (CBD) and 98% of local letters to destinations outside of it by the next working day. According to IMDA, SingPost fell short of that standard in May 2017.
‘Unprecedented’ shortfalls in delivery standards
IMDA added that SingPost also failed to meet the requirements to deliver all local basic letters by the second working day in January, April, May, October and November 2017.
SingPost also failed to meet the same requirements for registered mail in January, September and November 2017.
This was not the first time SingPost failed to meet IMDA’s Quality of Service (QoS) standards. However, 2017’s margin of failure was “significant” compared to previous instances.
“Having considered all factors, IMDA has imposed a financial penalty of $100,000 on SingPost for the nine incidents of non-compliance with IMDA’s QoS standards in the period from January to December 2017.”IMDA Press release
SingPost’s profits up 15.6%
On February 1, SingPost announced that its third-quarter net profit for FY18/19 rose 15.6% to S$50.2 million. Year-on-year revenue was up from S$410 million to S$441 million. With that kind of revenue, SingPost can recover the full amount of the fine in only 29 minutes.