Singapore Post (SingPost) announced, on Sept 12, that it has signed a memorandum of understanding (MOU) with Alibaba’s logistics arm, Cainiao.
The MOU will explore strategic collaborations between both parties aimed at fostering the long-term growth of Singapore’s cargo and logistics sectors. According to the joint release by SingPost and Cainiao, the MOU will focus on areas for optimising delivery costs and increasing volumes, leveraging Cainiao’s technology solutions and SingPost’s extensive logistics network.
Areas of cooperation include fortifying Singapore’s role as an air cargo transshipment hub, developing innovative postal products for China and Southeast Asia and improving last-mile delivery capabilities in Singapore and beyond.
According to Statista, the region’s e-commerce market is expected to be worth US$186 billion ($242.51 billion) by 2025, up from US$139 billion in 2023.
"Singapore's strategic location and world-class infrastructure make it an ideal transhipment hub for the growing e-commerce sector in Asia. This collaboration with Cainiao aligns with our path of digitalisation and our focus on e-commerce logistics,” says Li Yu, CEO, International, SingPost. “By combining our strengths, we aim to enhance service quality for our customers."
William Xiong, senior vice president at Cainiao Group notes the “rising need” for “greater efficiency and faster delivery” amid the rapid growth of e-commerce in SEA.
See also: UOB signs MOU with Shanghai Gold Exchange to connect China’s gold supply chain to Asean markets
“We look forward to collaborating with partners like SingPost to contribute to a robust eCommerce logistics ecosystem. By integrating our technology with SingPost’s network, we aim to provide reliable logistics solutions that support global connectivity, facilitate trade between Southeast Asia and the rest of the world,” he adds.
The collaboration is set to commence with a pilot project in the coming months.
As at 1.03pm, shares in SingPost are trading 1 cent lower or 2.25% down at 43.5 cents.
