Postal Services Act Amended to Support Evolving Postal & Ecommerce Landscape
Joint Press Release by MCI and IMDA
Amendments will bring convenience to e-commerce users and level the playing field for logistics service providers
The proposed amendments to the Postal Services Act (PSA) were passed in Parliament today.
To support the growth of e-commerce and the resultant increased use of the postal network for e-commerce items, the Ministry of Communications & Information (MCI) and the Infocomm Media Development Authority (IMDA) have updated the PSA to facilitate the deployment of a nationwide network of parcel lockers to complement the existing letterbox infrastructure, amongst other amendments.
The introduction of the open-access parcel lockers1 will benefit e-commerce users, as SMEs and businesses digitalise and e-commerce continues to grow in the near future.2
In addition, the PSA amendments will improve access to letterboxes by logistics service providers for the delivery of non-letters3, and strengthen IMDA’s regulatory oversight of the postal sector and its infrastructure, since the PSA was last amended in 2007.
Facilitating one of the world’s first nationwide open-access locker infrastructure
The PSA amendments will allow IMDA, as the appointed Postal Authority, to establish, install, operate and maintain the public parcel locker network at specified premises, such as HDB estates, public transport nodes, and community centres and clubs managed by the People’s Association. This will help address the current fragmentation of the parcel lockers, and minimise duplication of locker infrastructure.
The amendments will also provide for access to selected public spaces and facilities for the deployment of the parcel locker network, and provide IMDA with enforcement powers to ensure the safe use and operation of the network, amongst others.
Strengthening regulatory oversight and improving letterbox infrastructure
The PSA amendments will allow other postal licensees, delivery service providers and online merchants to deliver small packets and other non-letters into letterboxes through the public postal licensee (i.e. SingPost), at regulated terms and conditions.
This will further facilitate competition in last-mile delivery services. IMDA will also require building owners to maintain or provide letterboxes after they take over a property from building developers. This will ensure that letter delivery is not disrupted by making clear the parties responsible for providing and maintaining letterboxes.
Please refer to Annex A for quotes by e-commerce marketplaces and logistics service providers.
1 The parcel lockers will be available for use by all logistics service providers, e-commerce marketplaces and their customers.
2 The e-commerce sector in Singapore is projected to grow at a compound annual growth rate of 16% from 2020 to 2025, according to industry estimates from e-Conomy Southeast Asia 2020, a report by Bain & Company, Temasek, and Google on the Internet economy in Southeast Asia. (http://www.bain.com/insights/e-conomy-sea-2020)
3 Non-letters refer to any article transmissible by post, including e-commerce items, that can be delivered into letterboxes and are not written communications/letters.