Would a postal financing framework deliver a solution to SingPost’s woes?

[SINGAPORE] Ordinarily, when a portion of or the whole business is facing structural decline or persistently making losses with little prospect of a turnaround, the owner will likely discontinue it to maximise profitability or ensure corporate survival.

However, the case is not so straightforward when the business is licensed to provide public utilities such as train services or mail delivery.

This is the difficult position that Singapore Post (SingPost) finds itself in, being the holder of a public postal licence that will expire only on Mar 31, 2037.