SINGAPORE: Singapore Post (SingPost) has decided to retain its flagship SingPost Centre mall and upgrade it, reversing an earlier signal that it was considering a sale.
“Today, I can be clear to state that we are keeping SingPost Centre. It is not for sale,” CEO Mark Chong said during a media briefing on the company’s finances on Thursday (May 14).
“SingPost Centre remains a crucial part of our portfolio. We are retaining it to harvest significant long-term upside for our shareholders.”
Over the next two years, the group plans to enhance facilities and the retail experience at the mall, and increase the amount of commercial space available for rent.
An architect has already been appointed for the project, Mr Chong said.
He pointed to plans to relocate Paya Lebar Air Base from 2030, after which height restrictions will be lifted — materially increasing the centre’s redevelopment value.
Asked about the reversal, Mr Chong said global conditions had changed significantly. “What we have seen is that with the turbulence out there in the world, it is better that we be more certain on our earnings.”
He added that the group had not fully accounted for the upside from the Paya Lebar Air Base closure and surrounding redevelopment plans. “There’s a lot more upside that we could reap. That’s the main reason why we want to keep SingPost Centre.”
The cost of the upgrade has not been disclosed, with Mr Chong citing an ongoing study. He said the group would manage spending within its means and aim to minimise disruption to existing tenants, while promising an “uplift in quality” for patrons.
REVENUE DOWN 23%
SingPost’s latest decision follows a turbulent period for the group, and after the company announced a strategic review.
Three senior executives were fired in 2024, while five others left in early 2025 amid a restructuring exercise. Mr Chong joined as chief executive on Nov 1, 2025.
For the financial year ended Mar 31, the group recorded revenue of S$376.1 million (US$295.5 million), down 23.1 per cent year-on-year from S$489.1 million.
SingPost said revenue was weighed down by a 55.2 per cent contraction in international revenue, amid a volatile macroeconomic environment and continued declines in letter mail volumes.
Net profit for the full year came in at S$60.9 million, boosted by exceptional items – which included gains from the disposal of subsidiaries and fair value gains from investment properties – and a one-off accounting adjustment. Stripping these out, underlying net profit was S$10.7 million.
Its post office network narrowed operating losses by 27.4 per cent to S$10.7 million, driven by a 20 per cent reduction in operating expenses as the group optimised its physical footprint.
SingPost said it intends to maintain about 40 manned and unmanned touchpoints, while freeing up unused space at post offices for leasing. Its Killiney post office, for instance, shares a building with a bar.
In its logistics and letters business, domestic e-commerce volume grew 8.1 per cent, with a postage revision at the start of the year helping offset a 13.5 per cent decline in traditional letter mail. International e-commerce volume fell 57.9 per cent due to challenging global conditions.
SingPost said it will transition to an improved operating model over the next few years and aims to cut its cost to serve by 10 per cent through AI and automation.
The company proposed a final dividend of 0.06 cents and a supplemental dividend of 0.41 cents, bringing the total to 0.47 cents per share.
