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POS MALAYSIA OPTIMISES RESOURCES TO MAINTAIN SUSTAINABLE BUSINESS

Kuala Lumpur , 1 July 2021 – Pos Rider is a crowdsourcing programme, with the aim to provide support to Pos Malaysia’s courier delivery personnel specifically during peak periods.

The Pos Rider programme played a critical role during the Movement Control Order (MCO) last year when parcel volume surged as online shopping increased, creating over 1,400 job opportunities.

While demand for online purchases continue to grow for courier services this year, the competitive courier landscape has resulted in an increase in e-commerce players establishing their own delivery services. This has led to a reduction of market dependence in parcel delivery services among the local courier players, causing parcel volume to stabilise.

Due to the decline in mail volume, we now have excess resources that could deliver the courier items. As such, we needed to reduce the external outsourcing programme and prioritise our own employees to deliver the courier items as this would also enhance their earnings through overtime and protect their livelihood.

During challenging times such as the pandemic, it is necessary for us to be mindful of cost and optimise available resources to ensure business sustainability, for the livelihoods of more than 13,600 Pos Malaysia frontliners nationwide.

Besides intense competition, we are also affected by price dumping practices (offering of unfair low prices) by players within the industry that aims to disrupt the market. To be competitive and survive this challenging business environment, we have to be cautious and prudent in managing our costs.

The first phase of the rationalisation takes effect beginning 1 July 2021 across all states except in Klang Valley, Sabah and Sarawak. We have issued a 14-day notice to all affected Pos Riders, which complies with the cessation clause as stipulated in their contract.

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