Singapore Post has been set a significantly higher penalty in the event that it misses its quality of service targets, after a review by regulators.
The Infocomm Development Authority of Singapore said the new Quality of Service framework will apply a $50,000 penalty for each month and each quality indicator missed by SingPost in its basic letter services.
The current framework set a penalty of $1,000 to $5,000 per month per indicator.
The new framework takes effect from Sunday (1 July), and also requires SingPost to appoint and fund an independent body to monitor its letter services for quality issues, setting up a sampling test.
The IDA’s deputy chief executive and director general for telecoms and post, Leong Keng Thai, said the changes were part of a regular review of the Quality of Service framework ensuring that postal quality standards remain relevant to the current conditions.
He said: “While the standards remain relevant, the changes underscore the importance of postal services, and ensure that SingPost will continue to improve its service standards to meet the public’s postal needs.”
Singapore’s Quality of Service framework, which was last reviewed in 2006, requires SingPost to deliver 99% of basic letters (received by 3pm) by next working day within central Singapore and 98% outside the centre.
A full 100% of basic letters must be delivered by the second working day.
During 2011, SingPost achieved next working day delivery rates above 99.5% for items delivered inside the centre of Singapore, and above 99.1% for items going outside the centre.
The company listed on the Singapore Stock Exchange currently delivers about 960m mailpieces each year.