Pos Malaysia continues to enhance value chain amid e-commerce boom

It believes the automation of parcel-sorting is key in providing faster delivery which gives it a competitive advantage


POS Malaysia Bhd will continue to improve the value chain of its courier business in tandem with the boom in e-commerce.

The postal service provider believes the automation of parcel-sorting is key in providing faster delivery which gives it a competitive advantage.

In a market crowded with courier players, Postal Services CEO Mohamed Rozaidi Md Sharif said providing better customer experience will set Pos Malaysia apart from its competitors.

“It is critical that we grow and enhance our supply chain to deliver our brand promise and remain as Malaysia’s courier of choice.

“All in all, most of our efforts are geared towards creating a better customer experience by providing convenience and service assurance,” he told The Malaysian Reserve in an interview recently.

Pos Malaysia is currently carrying out its three-year transformational plan which was presented last year.

The initiatives are still in progress and have helped the group cushion the impacts of the Movement Control Order at the beginning of the Covid-19 pandemic.

Mohamed Rozaidi said Pos Malaysia will continue to push for automation in more distribution centres nationwide to ensure the timeliness of deliveries and optimise the cost.

“Today, we engage with our customers through digital platforms like the mobile app, AskPos chatbot and PosLaju SendParcel.

“We see e-commerce as a growing trend and will continue throughout the rest of the year as a result of new market segments that have emerged,” he added.

As of September 2020, Pos Malaysia received close to two million parcels a month, and since SendParcel services were launched in September last year, approximately 3.3 million parcels have been processed.

Moving forward, Pos Malaysia is upbeat with the possibility of PosLaju SendParcel hitting two million parcels monthly by next year.

To date, Pos Malaysia has 28 distribution centres fitted with semi-automated sorting systems which reduce manual workload and streamline workflow for total efficiency.

Pos Malaysia will be deploying four additional centres equipped with the system by year-end.

Commenting on challenges, Mohamed Rozaidi said international services have been disrupted due to varying levels of restrictions on commercial flights across destination countries, airport closures and cross-border services.

“However, the suspension of our international services is offset by the Asia Xpress international service which is available at selected post offices and PosLaju centres.

“Asia Xpress is an optional courier service provided by Pos Malaysia’s wholly owned subsidiary for delivery of international mail and parcel to over 220 countries,” he added.

In the wishlist for Budget 2021, Mohamed Rozaidi hopes the government would consider expanding initiatives such as Shop Malaysia Online, and micro and small and medium enterprises e-commerce campaigns.

This, he said, will encourage online spending in Malaysia even further to stimulate more growth for the e-commerce sector.

“We are constantly engaging with our regulators and relevant government bodies to reform the industry according to future trends, allowing us to better serve Malaysians,” he concluded.

Pos Malaysia stated that strong demand for courier service and higher postal tariff increased its revenue for the second quarter ended June 30, 2020 (2Q20), to RM606.1 million from RM573 million in the corresponding quarter last year.

The surge in postal volume helped the postal company narrow its net loss by 61% to RM19 million compared to RM68.2 million in the same quarter last year.

The group’s courier business revenue increased 20% year-on-year in 2Q20, driven by the surge in demand from e-commerce and online marketplaces.