Time for Singtel to sell SingPost stake

AS the end of the first quarter approaches, with annual general meeting season on the horizon, one question might be on investors' minds: Could Singtel be thinking about selling its stake in Singapore Post? And should it?

Seeing how rapidly the telco wars are heating up here, that possibility is beginning to seem not that much of a stretch. And if the right buyer can be found, a parting of ways could turn out to be win-win for all parties.

Though Singtel has thus far kept mum on its plans regarding SingPost, its name has come up in recent market talk of potential non-core divestments. Observers point to the prospect of stiffer competition in the telco industry as the sector liberalises, noting that the three incumbents may be more inclined to bolster their war chests before the entry of a fourth telco. The recent unveiling of data-only mobile plans by contender MyRepublic has already led them to push out new offerings, and competition is likely to only get keener from here.