Mr Chua Kheng Wee Louis (Sengkang): Thank you, Mr Deputy Speaker. Just two supplementary questions.
Firstly, in relation to the domestic postal obligations, which is the framework which the Senior Minister of State has talked about in terms of the regulatory framework that IMDA has, what recourse does the Government have if SingPost, as the operator, is unable or unwilling to actually carry out their obligations any further because of constraints that it is facing and so on?
Secondly, related to that, the company has also made an announcement that it is reviewing the commercial sustainability of the domestic postal business and it was also mentioned just now that there have been various discussions between IMDA and the company. Do these discussions actually involve the direct subsidising or funding of the company in relation to this aspect?
Mr Tan Kiat How: Sir, there seems to be a lot of interest in postal services today. Let me take Mr Chua’s questions in turn.
First, about the recourse that the Government, as a regulator, has in respect of the terms and conditions of the licence. Let me first explain that SingPost is a public postal licensee. It means that it applied for a licence to deliver a service in Singapore. So, there is no subsidy to the postal licensee. It is actually operating a business in Singapore and has applied for a licence to do so. IMDA, as the regulator, imposes certain conditions as part of that licence, and one of the conditions is the quality of service of the licensee. I hope that helps to address Mr Chua’s first question around the obligations and recourse. These are all part and parcel of the terms and conditions of the licence and its regulated operations.
The second question is around the commercial aspect. Like I mentioned earlier, SingPost is a publicly listed company and has its own set of corporate governance rules around its financial statements, its own set of considerations that it shares with its shareholders. So, I will not touch on that because it is under the remit of the board and management of the company. But I just want to point out that even in its most recent financial statements to its shareholders, the overall company is profitable. And when it talked about its specific segment of post and parcels, we should see that in that context as well. Even in the post and parcel segment of its business, basic postal service or the regulated service, is just one part of that sub-business that it operates.
Lastly, can the Member Mr Chua repeat the second question or have I answered all the questions? Okay. I have replied to all. Thank you.
Ministry of Communications and Information
5 July 2023
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=oral-answer-3286
Office of the Leader of the Opposition 