SingPost, citing the impending GST hike and higher costs, will be raising its postal rates with effect from the new year.
The so-called standard regular rates for mail weighing 20g and 40g will be raised from 30 cents and 37 cents to 31 cents and 38 cents.
With effect from Jan 1 2024, the rates will be raised further to 32 cents and 39 cents respectively.
Rates for other services such as tracked email, registered service and smartpac, will be raised too.
Singapore's GST rate will be increased to 8% from the current 7% with effect from Jan 1 2023, and to 9% come 2024.
"The adjustments in rates are inclusive of the increase in GST, as well as reflect the exceptional cost increases. The last revision to rates took place nine years ago, in 2014," says SingPost in a statement on Dec 16.
Neo Su Yin, Singapore CEO, SingPost says that Singapore offers one of the lowest postage rates in the world for a developed nation.
"Like our customers, SingPost has also been bearing the impact of inflationary cost increases across manpower, fuel and electricity that have risen significantly," says Neo.
The adjustment in rates will help us maintain our service offerings and high service standards, and enable us to operate sustainably with the GST hike. We remain committed to keeping our postal service relevant in the eCommerce age, bringing value to, and better serving the needs of our customers," she adds.
SingPost shares closed Dec 16 at 54 cents, up 4.9% for the day, but down 18.94% year to date.