Market Trends of Southeast Asia Postal Service Industry
Rise in Logistical Technology Innovation
More people are buying a wider range of products online across Southeast Asia through more diversified channels. The region's supply chain is changing to cope with this increased range of fulfillment requirements. There will be a need for new logistics skills, and the greatest benefits of these shifts are expected to come from existing logistical operators and newcomers who have them.
In February 2024, Thailand Post partnered with BIG and Electricity Generating Public Company Limited (EGCO Group) to develop the use of hydrogen energy in the logistics services provided by the post. This partnership aims to elevate energy management standards, bolster the capacity to deliver parcels and postal items sustainably and align with the country’s net-zero objective by 2065.
In November 2023, Pos Indonesia entered a partnership with China's mobile robotics specialist, Libiao Robotics, to provide a custom robotic sorting solution. The company installed a robotic sorting and RFID frequency identification system in Pos Bloc Surabaya, with Indonesia's Minister for State-owned enterprises, Erick Thohir, attending the launch.
Singapore Postal Services is Going International
Given the decline in conventional mail volumes worldwide as a result of digital communications, Singapore Post has been successful in managing its challenging logistics sector through strategic transformation.
According to SinPos International's CEO, Li Yu, the board and management have recognized that transformation is necessary for a long time. He claims that logistics accounted for more than 70% of the company's revenue in 2023 compared to less than 38% at the beginning of 2020. With acquisitions in Australia, a cross-border international business, and investment in digitalization innovation, the company has expanded to become an important player in the e-commerce logistics sector.
In November 2023, Freight Management Holdings Pty Ltd, a subsidiary of Singapore Post Limited, entered a conditional sale and purchase agreement with the shareholders of Border Express. In Australia, Border Express is the 6th largest provider of pallet and parcel distribution. The purchase price for the agreement was set at USD 210 million, i.e., EUR 183 million.
