SingPost, SBS Transit may not see lasting boost from transport fare, postage rate hikes
Companies that cannot respond to demand and costs with their own pricing strategies may suffer protracted periods of subpar profitability
Ben Paul
SBS Transit and Singapore Post (SingPost) do not usually excite investors, but they did last week on news that the public services they provide will soon cost more.
On Monday (Sep 18), the Public Transport Council (PTC) said bus and train fares will be increased by 7 per cent with effect from Dec 23. This is a significantly larger public transport fare hike than last year’s 2.9 per cent, and the previous year’s 2.2 per cent.
The following day, SingPost said it will raise domestic postage rates by 20 Singapore cents with effect from Oct 9. This translates to a more than 64.5 per cent increase in postage rate for standard regular mail – from the current 31 cents to 51 cents.
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