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IMDA fines SingPost S$100,000 for not meeting quality of service standards in 2017

THE Infocomm Media Development Authority (IMDA) has fined Singapore Post (SingPost) S$100,000 for not meeting quality of service (QoS) standards on delivery of local basic letters and registered mail in 2017. 

Under the Postal QoS framework, SingPost is required to deliver 99 per cent of local basic letters to an address within the Central Business District (CBD) and 98 per cent of local basic letters to destinations outside the CBD areas by the next working day. SingPost did not do so in May 2017, when it failed to meet the standard of 99 per cent delivery of local basic letters within the CBD by the next working day.

SingPost is also expected to deliver all local basic letters and registered mail by the second working day. It failed to meet the requirements for the delivery of local basic letters by the second working day for the months of January, April, May, October and November 2017, as well as the delivery of registered mail by the second working day for the months of January, September and November that year. 

"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  said in a press release on Thursday.

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In response, SingPost said it accepted the financial penalty imposed, adding that it would be implementing immediate measures to enhance service quality as part of a broad review of its postal operations.

IMDA is currently assessing SingPost's QoS for 2018 and will publish the results by mid-year.

Separately, IMDA is also investigating a Jan 29 incident this year where a postman discarded mail. Such behaviour is an offence under the Postal Services Act. 

Paul Coutts, SingPost's group chief executive officer, said: "We deeply apologise to our customers for our service failures. We have heard their complaints and feedback, we feel their frustrations and seek to win back their trust. The immediate measures we are announcing today will address the most pressing issues and provide improvement in service quality over the next three to six months."

The postal service provider also said that a fundamental review of SingPost's mail operations is underway to raise reliability and service standards, and to meet the demands of the evolving postal landscape. Among those changes is the rise of e-commerce which has boosted mail volumes significantly.

Aside from planning to upgrade the skill-set of its postal workers, SingPost will also be hiring an additional 100 postmen and redeploying 35 mail-drop drivers to become full-time postmen, enhancing remuneration as part of a broader salary review with incentives for successful deliveries of trackable items to the doorstep, extending mail delivery slots to weekday evenings and on Saturdays with overtime pay for postmen, as well as improving the parcel-collection experience by increasing the number of dedicated counters and staff at post offices. It also plans to reduce non-core mail businesses such as advertisements, so as to focus on raising its service levels for its core mail delivery business.