Postal firm to spend RM50m on ICT upgrade, rebrandingBy Zurinna Raja Adam
POS Malaysia Bhd (4634) will spend some RM50 million to upgrade its information and communications technology (ICT) infrastructure and on a rebranding exercise to transform the national postal company's business platform.
Since the mailing trend has been slowing down over the years, it has been looking for other income streams that offer higher margin services.
In July, Pos Malaysia teamed up with Malayan Banking Bhd (Maybank) and RHB Bank Bhd to offer the banks' financial services at post offices.
This follows the trend among postal companies around the world, where financial services are one of the largest contributors to their profit.
Group managing director and chief executive officer Datuk Syed Faisal Albar hopes the group will be able to begin offering the financial services by the first quarter of next year.
"Our pilot project with RHB Bank at selected post offices started in May this year. At Pos Malaysia, we offer financial services like consumer loans, money transfers, withdrawal and cash deposits," he said in Kuala Lumpur yesterday.
It was earlier reported that he expects financial services to generate more than half of Pos Malaysia's revenue in the future.
Currently, financial services are handled by Pos Malaysia's retail arm, Posniaga which contributes about 30 per cent to Pos Malaysia's total revenue, while financial services generate 17 per cent of Posniaga's revenue.
Pos Malaysia saw its net profit dip 31 per cent to RM38.5 million in the first half of this year as revenue fell particularly from its postal and related services. The group was also faced wit higher operating costs.