KUALA LUMPUR: Pos Malaysia Bhd is unperturbed that its operating costs may continue to rise.
“To bring down costs, of which a large proportion is from manpower, may be tricky. But there are areas we can look into especially productivity,” said chief executive officer Datuk Iskandar Mizal Mahmood.
The group posted lower earnings of RM27.1mil for its first quarter ended June 30, dragged mainly by higher operating costs from the increase in staff and transportation costs.
Pos Malaysia sees courier, transshipment driving growth – Business News I The Star Online
Iskandar said the lower year-on-year earnings were mainly due a spike in volume in the first quarter in the previous year due to the general election.
“In terms of the costs, it remains the same. What we have seen so far is that there has been an increase in productivity. Although we added to our workforce, they have been sent to the growth areas,” he told a briefing after the company’s AGM.
He added that the courier segment and the transhipment business would drive Pos Malaysia’s growth for the financial year ending March 31, 2015.
“As more Malaysian consumers shop online, the demand for courier services will accelerate such as express mail and parcel delivery, and this will benefit Pos Malaysia, which commands 38% of the local courier market,” said Iskandar.
He is confident the courier segment can achieve double digit growth for 2015.
The group will collaborate and work closely with its China counterparts to grow its transhipment business. “In China alone, transactions amount to US$200bil (RM638mil) and 600 million items are shipped out a year,” he said.
He added that the company was well-positioned to capture some of the market share due to Malaysia’s location, as well as its integrated parcel centre at KL International Airport (KLIA).
Iskandar said the company would spend more than RM150mil in capital expenditure (capex) for 2015.
Pos Malaysia is looking to further expand in information technology and communications, with the possibility of creating an app.
“We are not just a brick and mortar company. We need to be relevant to the people. We need to have an app, perhaps at a later stage, to make it easy,” he said. He added that Pos Malaysia would constantly review its capex numbers and ensure the allocation was used correctly.
Iskandar said the group was embarking on parcel lockers where customers could send their parcels to specific lockers to avoid loss of parcels.
“We will be rolling this out hopefully soon. The lockers will be located at strategic locations such as shopping malls and certain post offices,” he said.
Pos Malaysia would also allocate some of its capex for its integrated parcel centre at the KLIA as well as upgrade some post offices.