Here are 4 potential M&A targets that could boost SingPost’s growth outlook

More acquisitions remain on its cards.

According to CIMB, SingPost has been successful in its recent acquisitions and further M&As remain on the cards. It intends to fund future M&As with cash left over after its capex and dividends and will raise funds only when needed. 

Here's more:

We have identified the following possible M&A targets that can enhance SingPost’s capabilities and offerings: 

1) Low-cost couriers in Asia. These companies can offer customers better-quality and faster delivery alternatives to the local postal network.

Currently, SingPost offers last-mile delivery in Singapore and to certain cities in Malaysia, Vietnam, India, Thailand and the Philippines through its subsidiaries and JVs, but still lacks such an offering in other Asian countries such as Indonesia and China. 

2) e-commerce logistics providers. SingPost’s regional logistics presence is supported by Quantium Solutions, which has close to 20 warehouses in 12 countries. Quantium has a stronger presence in markets such as India, but fewer capabilities and warehouses in other markets. 

SingPost could potentially look at acquisitions along the e-commerce logistics supply chain to strengthen its offerings in existing markets or even new markets.

3) Mobile commerce platforms. Given the rising penetration of mobile broadband in Asia and growing e-commerce sales from m-commerce, the acquisition of mobile commerce platforms is possible. SingPost operates an e-commerce website called omigo.com, which allows SMEs and start-ups to list their products for sale. SingPost can deepen its offerings by providing a mobile platform as well. 

4) Payment solutions. A lack of reliable online payment and collection systems is another issue for the e-commerce industry in Asia. With the acquisition of a payment solutions provider, SingPost can offer secure real-time payment processing capabilities to enhance its suite of front-end e-commerce logistics offerings. 

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.


The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.


So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.