Pos Malaysia warns of 'soaring' rates if US leaves global union

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KUALA LUMPUR (Sept 25): Pos Malaysia Bhd is working closely with the government and all relevant bodies on ways that will brace consumers and businesses for potential high rates and instability in the global postal system if the United States Postal Service (USPS) leaves the Universal Postal Union (UPU).

Pos Malaysia said in a statement today the threat of USPS leaving the UPU on Oct 17, 2019 is looming at a special UPU Congress that is being held in Geneva from Tuesday to Thursday (Sept 24 to 26, 2019).

"In total, three proposals have been tabled and all options will see a high cost impact to postal operators across the globe. As some have dubbed the withdrawal prospect ‘Pexit’ (short for ‘Postal Exit’) — an allusion to the likewise uncertainty of Brexit. Even though the US has not singled out China, most products from e-commerce do come from China either direct or through third countries in Asia. Countries like Malaysia are caught in the cross fire of this escalated trade war.

"While Malaysia’s stand is for the status quo and a more matured new proposal to be studied and submitted in the next Abidjan UPU Congress in 2020, it is likely that a new option, proposed by the US will be voted through in at this extraordinary congress. The voting process is currently ongoing from Sept 25 to 26, 2019 and Pos Malaysia will be updating on the outcome of the members’ decision accordingly," it said.

Pos Malaysia said deregulation is a possible option to cushion the potential soaring of postal and parcel rates globally.

Notwitstanding the revision of rates that come into agreement, the group said its priority is to ensure that it will continuously provide affordable postal services to all users.

"While Pos Malaysia will need to address this to minimise the impact for Malaysia’s consumers and businesses, we will not lose sight on its transformation agenda. This will be built upon Pos Malaysia’s unmatched distribution network and the vast opportunity to develop new digital businesses for its customers," Pos Malaysia said.