SingPost sets three-year deadline to fully become logistics firm

Change in dividend policy among moves being made after eight-month-long review

- Colin Tan Senior

SINGAPORE – Through a multi-pronged strategy, SingPost will attempt to transform itself fully into a logistics company within three years, group chief executive Vincent Phang said during a review of the business on March 19.

The move, which comes after an eight-month-long review, could involve selling SingPost Centre in Paya Lebar, as well as a partial stake in its Australian business to improve shareholder returns. It will also see a change in the company’s dividend policy.

These plans fall under the group’s strategy of managing capital more efficiently.

This focus could see non-core assets – including the group’s SingPost Centre – divested and the sales proceeds used to pay down debt, invested in its faster-growing businesses or returned to shareholders.

SingPost Centre was valued at $1.1 billion as at September 2023.

Another initiative is the reorganisation of its business lines into geographic segments consisting of Australia – which accounts for around 60 per cent of the group’s revenue and profits – along with both Singapore and the international operations.