POSTAL DELIVERY SERVICES

POSTAL DELIVERY SERVICES:

(Level of customer satisfaction): 14.

Mr Arthur Fong asked the Minister for Information, Communications and the Arts for an assessment of the level of satisfaction of the postal services especially after the non-delivery of mail on weekends and the many complaints from residents.

The Minister for Information, Communications and the Arts (RAdm [NS] Lui Tuck Yew): Mr Speaker, Sir, let me thank Mr Arthur Fong for his question on the postal delivery service.

The Infocomm Development Authority (IDA) actively monitors the level of customer satisfaction with the postal delivery service and, indeed, we have observed an increase in the number of complaints in the second half of last year. These complaints relate to both mail and parcel delivery.

Basic mail delivery service is licensed. As a Public Postal Licensee, SingPost is required to comply with the Quality of Service (QoS) standards set by IDA for

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the delivery of ordinary mail. Ordinary mail is defined as basic letters that weigh up to 500 grams. The QoS standards require 99% and 98% of local ordinary mail posted before stipulated collection times, to be delivered by the next working day for destinations within and outside the Central Business District (CBD) respectively. So, 99% for destinations within the CBD by the next working day and 98% for mail collected to be delivered by the next working day for those outside the CBD and, of course, for both areas 100% of the mail to be delivered by the second working day. There are also other QoS standards for the local processing of foreign ordinary mail. All QoS standards are measured monthly and reviewed on a quarterly basis.

SingPost has been complying with the QoS standards, including after the implementation of the five-day mail collection and delivery service implemented in May 2010. While there had been 108 complaints to IDA, SingPost and the media on late or lost ordinary mail between July and December of last year, it should be taken into perspective that SingPost delivers more than 60 million mail items on a monthly basis.

Parcel delivery does not require a licence from IDA. The parcel delivery market is fully liberalised and is a competitive one with many service providers besides SingPost, including both local and foreign operators, such as Federal Express, United Parcel Services, DHL, TNT, Swiss Post, Royal Mail, Deutsche Post and Sweden Post. With the availability of competitive options for consumers, IDA believes that market forces will compel operators to provide high quality parcel delivery services to consumers.

In view of the increase in the number of complaints in the second half of last year, IDA had asked SingPost to review

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its delivery processes. SingPost has identified two key causes for the recent service lapses: firstly, a higher-than-usual attrition rate in postal staff, and secondly, a substantial increase in overall parcel volume in the second half of last year. SingPost has publicly acknowledged these issues and shared their measures for improvements. These include stepping up the recruitment of postmen and postal workers as well as conducting additional and more stringent quality checks to minimise sorting errors and mis-deliveries.

To meet increasing consumer needs and expectations, SingPost has also informed IDA that it will implement several improvements to its delivery and operational procedures, such as re-designing the work processes at delivery bases, improving the workflow for handling mis-sorted mail, and increasing the number of collection trips, just to name a few of them. IDA is also reviewing the QoS standards imposed on SingPost and enhancing audits on its delivery service.

I also understand that the public has been concerned whether SingPost’s move to a five-day mail collection and delivery service has impacted postal service quality. A five-day mail service is not uncommon globally. More than 70 countries have implemented a five-day mail service, including countries such as Australia, Canada, Sweden and Malaysia, just to name a few. This was a result of declining mail volumes and changing mailing habits, driven by the increased use of alternative forms of communication like email and SMS, and the trend of more companies adopting a five-day work week. The five-day mail service has in fact served to optimise postal resources and provide a more family-friendly work week for postmen working in this physically demanding industry.

I would like to assure this House that IDA will continue to ensure that SingPost

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improves its delivery processes so that the public’s postal needs are met.

Mr Arthur Fong (West Coast): **** I would like to thank the Minister for his comprehensive reply. I would like to know if IDA would impose stiffer penalties or firmer action against the mail mis-deliveries because in today's world, some of these mail, if they are mis-delivered, could have legal or financial impact.

RAdm [NS] Lui Tuck Yew: What we are doing is really re-looking at the QoS and, as part of the re-look, we may be prepared to re-consider the penalties that we may have to impose. Once again, let me say that based on the standards that we have established today, SingPost meets them fully and the number of complaints, I would have to say, are actually relatively small compared to the volume of mail that SingPost has to handle, which is about 60 million mail items on a monthly basis.

2.58 pm

Mr Speaker: Order. End of Question time.

[ Pursuant to Standing Order No. 22(3), Written Answers to Question Nos. 18, 20, 23, 25, 28, 30-32, 34, 36 and 37 on the Order Paper are reproduced in the Appendix*. Question Nos. 15-17, 19, 21-22, 24, 26-27, 29, 33, 35 and 38 have been postponed to the sitting of Parliament on 11th January 2011 .]

*Cols. 2135-2152.

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