Sacking of SingPost's group CEO could delay restructuring plans for future growth

Analysts uncertain of impact on plans to focus on logistics and divest non-core assets

- Kang Wan Chern

The termination of the employment of Singapore Post's group chief executive, Mr Vincent Phang, could delay ongoing efforts to ensure the long-term commercial viability of the postal service business, given that he had been instrumental in leading its restructuring, some analysts said.

They are uncertain of whether his departure will have any impact on SingPost's new plans to focus on logistics for future growth and divest non-core assets to pare debt and return excess capital to shareholders.

Those plans also include the proposed sale of SingPost's Australian freight management business to a private equity firm for A$776 million (S$656 million) in cash, which would substantially improve the company's financial position and make way for a potential special dividend.

Given that the Australian business is a major contributor to the company's overall profits, the sale had also raised questions about SingPost's long-term growth potential - doubts that Mr Phang would have been well placed to address.

SingPost had also been finalising an operating model with the Infocomm Media Development Authority that includes plans to transition away from post offices to alternative locations and channels where customers can interact with the postal system to send, receive or manage mail and parcels, among other things.