Singapore Post : SingPost Announces Additional Measures to Address Singapore's Changing Postal Trend

For Immediate Release

- Its low cost e-commerce delivery model enables businesses to enter the Asian market expeditiously

Singapore, 19 June 2014 - Singapore Post Limited (SingPost) shone on the global stage yesterday where it was announced the winner of the 15th World Mail Award1 2014 for e-commerce at Hilton Berlin Hotel in Germany. Including last year's win in the People Management category, SingPost is proud to hold three awards from the most esteemed award ceremony in the postal industry. It had previously won the top award for Mail Quality.
With numerous submissions received, 27 were shortlisted before 10 winners were eventually announced at the Gala presentation last evening. SingPost, which was

1 The World Mail Awards, which was introduced in 2000, aim to encourage and celebrate best practices within the mail industry worldwide. These awards are presented to postal operators or service providers worldwide, which have been reviewed by a prestigious panel of judges comprising UPU members and international postal industry leaders and users.

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shortlisted as the Top 3 along with Deutsche Post and Cycleon, emerged winner in the e-
commerce category for its low cost e-commerce delivery model. SingPost's other shortlisted submission was for Customer Service.
In line with the company's vision to be the regional leader in e-commerce logistics and trusted communications, SingPost delivered the low cost e-commerce delivery model in
2013 to enable businesses to enter the Asian market. Businesses are able to tap on SingPost's fully integrated e-commerce logistics solutions covering the four key areas of freight, customs & regulations management, warehousing & fulfilment, last-mile delivery & returns and e-commerce web services at a low cost under a single brand.
Said Dr Wolfgang Baier, Group Chief Executive Officer of SingPost: "Under the threat of disintermediation, SingPost had to reinvent our postal business. Letter mail volume continues to decline rapidly here in Singapore and globally. Last year, our domestic mail volume fell 1.3%, marking the second consecutive year of declines. Escalating operating costs compound our challenges. To make up for declining volumes and higher costs, we had to transform and develop a second wing."
He added: "At the same time, the changing landscape saw an explosive growth in e- commerce globally, with the e-commerce logistics market in Asia Pacific expected to hit USD175 billion by 2016. This presented a huge opportunity for us to grow our second wing and we responded quickly to develop a revolutionary new set of e-commerce models."
SingPost's three tier business model has revolutionised the e-commerce business for post offices. It has made its B2B4C Monobrand e-commerce platform and its Omigo marketplace available to other post offices. In addition, SingPost has enabled multiple other post offices to use our vPOST technology and business model including New Zealand Post, Malaysia Post and several European posts.

Serving large businesses and brands across Asia Pacific, SingPost's B2B4C Monobrand solution includes e-commerce website development, warehousing, last mile delivery, marketing, customer care, and returns management. This fully localised model results in the easiest and fastest deployment for businesses and the most transparent user experience for consumers. Monobrands such as Adidas (shop.adidas.com.my) was the first global brand to take advantage of this low cost e-commerce solution early last year, followed by Levis in Australia (www.levis.com.au), Toshiba (shop.toshiba.com.sg) and Philips (shopphilips.com.sg).
With SingPost's Monobrand Solution, businesses do not have to contend with major capital outlays for investments in technology, warehousing, fulfilment support and delivery

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infrastructure and resources, handling of customs requirements of the different markets,
setting up of legal entities in each market, integrating local payment methods into the e- commerce system or managing fraud and transaction risk. Further, they have the ability to roll out into the region quickly and efficiently, leveraging SingPost's regional network. They can also focus on branding and product strategies to grow their business.

SingPost also offers shipping services for consumers to forward purchases from any US e- commerce site and international online retailers who do not ship to their home country via vPOST (www.vpost.com.sg) since 2004.
In November 2013, SingPost launched Omigo, an e-commerce logistics marketplace platform for small and medium sized enterprises (SMEs). Omigo (www.omigo.com.sg) brings together more than 200 brands and over 17,000 consumer electronics, home and lifestyle products, baby and toys products as well as books from around the world to give online shoppers choices at best possible prices in Singapore. The Omigo marketplace enables brands and merchants from Asia, US and Europe to present their products on SingPost's one-stop online shopping destination. Built and owned by SingPost, Omigo curates shopping experience and leverages SingPost's e-commerce logistics capability to drive customer satisfaction. It provides free delivery for any order above S$99 and free returns to its customers.

In accepting the e-commerce award, Dr Wolfgang Baier said: "It is truly an honour for our team to receive an award for e-commerce, which is now very much part of SingPost's DNA. This award affirms our transformation strategy on e-commerce logistics and is a boost for Singapore as well." He added: "We have been working hard to establish a regional e-commerce logistics value chain covering the four areas of freight, customs & regulations management, warehousing & fulfilment, last-mile delivery & returns and e- commerce web services. And we can only achieve that by working closely with our postal friends across the world."
Evidently happy with the win, Dr Baier was equally emphatic about SingPost's continued commitment to postal services especially in Singapore. "At the core, we are still in the postal business. Even as we develop our e-commerce logistics business, we remain focused on investing in our postal infrastructure and services to maintain the high level of service and to continue to serve our Singapore customers well. We are investing S$100 million to upgrade postal infrastructure, transform touchpoints and innovate on our products and services in Singapore", said Dr Baier.
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(Reg. No. 199201623M)

With its competencies in mail, logistics and e-commerce, SingPost is able to offer integrated e- commerce logistics solutions tailored to customers' needs. Having one of the largest multi- channel distribution networks in Singapore, regional operations in 13 countries and access to a global postal network of more than 220 countries/territories, SingPost is also well-positioned to provide end-to-end e-commerce logistics solutions such as warehousing, pick and pack, delivery and returns management for B2B, B2C and B2B4C customers in Singapore and the region.

SingPost won the UPU-approved World Mail Award for People Management in June 2013 and was ranked the top postal agency in an Accenture report in March 2013. SingPost also gained international acclaim when it was bestowed the Service Provider of the Year 2012 award by Postal Technology International. SingPost is the only company to win to the Universal Postal Union's EMS Cooperative award for its Speedpost courier service every year since 2001.

SingPost was listed on the Main Board of the Singapore Exchange in 2003. To learn more about

SingPost, please visit www.singpost.com.

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For general information on SingPost, visit us at www.singpost.com

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