Pos Malaysia embarks on digital transformation project
Its group CEO Syed Md Najib Syed Md Noor said the revenue for Pos Malaysia, especially in terms of mail, has dropped tremendously over the past few years.
“The conventional mail drop rate is more than 10% per year. It has also reported a double-digit decline year-on-year.
“Ten years ago, we were making more than RM1 billion in revenue and it has declined to about RM650 million now,” he told The Malaysian Reserve at the 50th World Post Day celebration in Kuala Lumpur yesterday.
Syed Md Najib said the courier service is very competitive and most of the company’s revenue comes from the parcel segment.
“We know that we have the reach, but we must be able to absorb more demand from the customers. So, I think this is going to be a part of our digitalisation project.
“We have also been looking at a gradual reduction of cost over the years,” he said, adding that the company’s challenge now is to balance the cost to not run as high as the revenue.
The company has also targeted to achieve a “no loss position” by the end of next year.
“Currently, we have spent a lot on our IT platform for users to track and trace their parcels more efficiently. Recently, we have also collaborated with software developers for cloud sourcing.
“We will continue to innovate as we go. We have already started some of the transformation programmes and I believe this whole thing will take us about two or three years,” Syed Md Najib said.
Additionally, he said the company is expected to launch its parcel locker service to 250 locations in the country by the second half of next year.
Currently, Pos Malaysia has achieved about 700,000 parcels per day. The last run of 9.9 sales has also contributed pushed the movement of more than four million parcels in a week.
Meanwhile, Pos Malaysia also unveiled its “Pos Silang” (Post Crossing) project to mark the 50th World Post Day anniversary.
The project allows people to send and receive postcards from random people around the world.
Communication and Multimedia Deputy Minister Eddin Syazlee Shith said people should acknowledge the postal service which has made lives easier.
“We are aware of issues regarding issues involving postal staff like their welfare and wages. We are grateful that they are trying their best to serve the people of Malaysia.
“I hope that Pos Malaysia will continue to carry out its responsibilities and tasks more effectively,” he said.