New tariffs to reverse Pos Malaysia’s losses, says minister

12 Sep 2019 / 21:04 H.

KUALA LUMPUR: Postage may get costlier as an announcement of a possible tariff hike will be made by the government by the end of the year.

Communications and Multimedia Minister Gobind Singh Deo (pix) said the ministry is awaiting a report from national courier and postal service provider Pos Malaysia Bhd on a proposed new tariff.

“We are looking at it, maybe by the next parliament session. But to be fair to Pos Malaysia, they are supposed to send me a report.

“When I receive it, I will hold a press conference to let you know. I hope we can get it done by the end of this year,” he told reporters after officiating at the third NextBig Tech Asia Conference today.

The minister was commenting on speculations of a possible hike in postage to reverse Pos Malaysia’s fortunes, after the company incurred a net loss of RM165.75 million for the financial year ending March 3, its first annual loss since 2008.

DRB-HICOM, the parent company of Pos Malaysia, had in April said it was confident the latter would be back in the black once the government approves its proposed tariff increase on stamps.

The conglomerate’s group managing director Datuk Seri Syed Faisal Albar noted that the last time domestic postage cost were raised – to the current 60 sen – was about 10 years ago in 2010.

Prior to that, the cost of stamps remained at 30 sen from 1992, when the Postal Department was corporatised as Pos Malaysia.

“If you are a highway operator, you cannot survive. Any business can’t survive. After 2010, there was supposed to be a small increase every three years. But it has been nearly 10 years (without increment),” he said.

When the rate was increased in 2010, Pos Malaysia’s earnings improved noticeably and the postal group is hoping the government would approve another hike.

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