SingPost scraps plan to sell flagship building, citing Paya Lebar upside
The postal group says it will instead upgrade SingPost Centre and expand commercial space for rent.
The exterior of SingPost Centre. (File photo: TODAY)
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SINGAPORE: Singapore Post (SingPost) has decided to retain its flagship SingPost Centre mall and upgrade it, reversing an earlier signal that it was considering a sale.
"Today, I can be clear to state that we are keeping SingPost Centre. It is not for sale," CEO Mark Chong said during a media briefing on the company's finances on Thursday (May 14).
"SingPost Centre remains a crucial part of our portfolio. We are retaining it to harvest significant long-term upside for our shareholders."
Over the next two years, the group plans to enhance facilities and the retail experience at the mall, and increase the amount of commercial space available for rent.
An architect has already been appointed for the project, Mr Chong said.
He pointed to plans to relocate Paya Lebar Air Base from 2030, after which height restrictions will be lifted — materially increasing the centre's redevelopment value.
Asked about the reversal, Mr Chong said global conditions had changed significantly. "What we have seen is that with the turbulence out there in the world, it is better that we be more certain on our earnings."
He added that the group had not fully accounted for the upside from the Paya Lebar Air Base closure and surrounding redevelopment plans. "There's a lot more upside that we could reap. That's the main reason why we want to keep SingPost Centre."
The cost of the upgrade has not been disclosed, with Mr Chong citing an ongoing study. He said the group would manage spending within its means and aim to minimise disruption to existing tenants, while promising an "uplift in quality" for patrons.
Chief financial officer Isaac Mah noted that SingPost Centre holds the single largest continuous footprint in close proximity to the MRT station, and that much of the space currently used for industrial purposes could be repurposed.
He estimated that the mall as it stands today represents roughly a third of the building's total space.
SingPost had previously announced it would consolidate e-commerce parcel sortation at its Tampines facility by mid-2026, freeing up around 83,000 sq ft of lettable industrial space at SingPost Centre.
REVENUE DOWN 23%
SingPost's latest decision follows a turbulent period for the group, and after the company announced a strategic review.
Three senior executives were fired in 2024, while five others left in early 2025 amid a restructuring exercise. Mr Chong joined as chief executive on Nov 1, 2025.
For the financial year ended Mar 31, the group recorded revenue of S$376.1 million (US$295.5 million), down 23.1 per cent year-on-year from S$489.1 million.
SingPost said revenue was weighed down by a 55.2 per cent contraction in international revenue, amid a volatile macroeconomic environment and continued declines in letter mail volumes.
Net profit for the full year came in at S$60.9 million, boosted by exceptional items – which included gains from the disposal of subsidiaries and fair value gains from investment properties – and a one-off accounting adjustment. Stripping these out, underlying net profit was S$10.7 million.
Its post office network narrowed operating losses by 27.4 per cent to S$10.7 million, driven by a 20 per cent reduction in operating expenses as the group optimised its physical footprint.
SingPost said it intends to maintain about 40 manned and unmanned touchpoints, while freeing up unused space at post offices for leasing. Its Killiney post office, for instance, shares a building with a bar.
In its logistics and letters business, domestic e-commerce volume grew 8.1 per cent, with a postage revision at the start of the year helping offset a 13.5 per cent decline in traditional letter mail. International e-commerce volume fell 57.9 per cent due to challenging global conditions.
On the international front, Mr Chong pointed to partnerships with Asendia and SkyNet Worldwide Express to strengthen cross-border logistics capabilities. He said the tie-ups would help simplify parcel delivery from Singapore to key markets, including through prepaid duty solutions to reduce friction.
SingPost also signed an agreement with Fullerton Healthcare Group on Thursday to explore improving healthcare delivery, including medication distribution – part of broader plans to seek out sector partnerships for market expansion.
The group aims to cut its cost to serve by 10 per cent through AI and automation. Asked whether this would lead to job cuts, Mr Chong said staff would be retrained and redeployed into new roles, such as AI-driven route optimisation. Last year, SingPost laid off 45 employees in corporate support and international business units.
The company proposed a final dividend of 0.06 cents and a supplemental dividend of 0.41 cents, bringing total proposed dividends to 0.47 cents per share.
