Mcmc Stop Treating Pos Like Extra Baggage



IN MY previous posting on Pos Malaysia, I produced a brief comparative pricing between the postal company and other courier services operating internationally and in the country. It showed how much Pos Malaysia's charges are still much lower than the courier companies issued with licence 'to kill' the national company.
It intrigues me. The government does not have a dictating policy on Pos Malaysia but the Malaysia Communications and Multimedia Commission is believed to regulate everything for the national courier.
I wonder how good the MCMC treatment for Pos Malaysia is but for one thing, the conglomerate was never given a true consideration for its proposals to hike up tariffs and other charges.
Pos Malaysia remains floating on continuous effort by its management to ensure that business goes on as usual and the employees' welfare is well taken care of. On the other side, the MCMC only keeps busy with one or two complaints against Pos Malaysia. A single lost letter or parcel or late delivery is treated as punishable.
The MCMC takes consumer complaints seriously while it is committed to regulate to improve the overall operational efficiency and quality of service of the postal and courier service industry in Malaysia.
However, the question is, why only find faults in Pos Malaysia and not dozens of courier companies operating here? Why Pos Malaysia is treated as a 'second class' citizen when it takes the most difficult 'last-mile' delivery which others refused to do? Has any MCMC official ever imagined the difficulty of postmen in the remote areas of Sabah and Sarawak?
Some said they are too busy with other courier companies and the telcos. Money comes from the telcos, I guess, and this attribute to their cold treatment of Pos Malaysia which finds it hard to sustain the operation sometimes.
To date, the MCMC has issued more than 120 licences including to major international courier players in order to support the growing e-commerce industry. Promoting healthy competition is essential to promote service delivery efficiency and innovation.
Which is positive but if Pos Malaysia (via its Pos Laju) is not given the commanding stake in local business, may as well give Pos Malaysia a hands-off! No point making them a corporate when they are not allowed to chart the future themselves!
As the biggest delivery company in Malaysia, Pos Malaysia (Pos) has taken drastic measures to improve the National postal system for the benefit of all citizens both in urban and rural areas.
These are some of the rehabilitative steps that have been and will be taken by Pos in the coming months to improve services;.
But the MCMC must give ample assistance to it. They need to buckle up on Pos Malaysia since there were ups and downs to its annual profits, and at a juncture not able to match up with other regional couriers. At the time when these companies are enjoying hefty profits, Pos Malaysia is licking its wounds.
In addition to the steps taken by Pos, MCMC must further help it in enhancing consumer protection regime by introducing a combination of minimum service performance standard and self-regulatory mechanism to all postal and courier licensees, in line with the provisions under the Postal Services Act 2012.
Transformation is not a new word for Pos Malaysia. The current turnaround plan, as the company reels from its first full-year loss in 11 years, will take three years. That is the assessment of the group.
We do not expect a return to the black in the next two financial years (FY2020 and FY2021) but the MCMC could at least monitor and move alongside Pos to make it standing tall with other privatised entities, like Tenaga Nasional and Telekom Malaysia.
Please aid Pos to record a sustainable growth which will make sense to investors. Make this as the longer-term objective.
While all five of Pos Malaysia’s business segments declined in FY2019, the key drag was its postal service division, which posted a RM183 million loss on segmental revenue of RM698 million, or 29.6% of the group revenue of RM2.36 billion.In FY2019, Pos Malaysia slipped RM165.75 million into the red, for its first full-year loss since FY2008, and the worst performance on record, according to Bloomberg data going back to 1999.Another drag was the plunge in profit at its courier segment, which leverages the same network as the snail mail, owing partly to a one-off RM63 million airplane re-delivery cost. Last year, both segments accounted for about two-thirds, or 65%, of Pos Malaysia’s revenue.A successful Pos Malaysia turnaround will hinge on tackling two core issues: (i) its high fixed costs due to its universal service obligation (USO); and (ii) bumping up productivity to squeeze more yield out of its assets, including the 23,000-strong workforce.

The new tariffs approved by MCMC effective on Feb 1 are not sufficient enough for Pos Malaysia (I believe) to give a rise to staff salary. Unless the government is benevolent enough, this can be solved through an assistance package as not to eat up on Pos purse.

To MCMC, do take up Pos Malaysia seriously and not for granted. Stop issuing new licences to courier companies. Develop and beautify your garden first before helping others to develop bigger ones!



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