Pos Malaysia says fuel surcharge hike does not apply to international shipments

KUALA LUMPUR (April 7): Pos Malaysia Bhd said its 5% fuel surcharge increase, which has been in effect since Friday (April 1, 2022), does not apply to international shipments.

"The recent fuel surcharge notice (on March 25, 2022) is only for Zone 4 and Zone 5 (between Peninsular Malaysia and Sabah/Sarawak) which are domestic [destinations].

"It does not apply to international shipments," Pos Malaysia said in a statement to theedgemarkets.com.

Pos Malaysia was responding to questions from theedgemarkets.com on its fuel surcharge and prospects of a fuel surcharge increase for overseas deliveries by the company.

On March 25, Pos Malaysia issued a notice that it will raise its fuel surcharge by 5% for shipments between Peninsular Malaysia (Zone 5) and Sabah/Sarawak (Zone 4).

This is on the back of the surge in jet fuel prices, which it attributed to the ongoing tensions between Ukraine and net oil and gas exporter Russia.

Pos Malaysia, however, did not specify in the notice the quantum of its previous fuel surcharge prior to the 5% increase and the new figures after the 5% hike.

"All pricing is subject to change. Pos Malaysia reserves the right to revise or adjust the price/fee and product offerings for any reason whatsoever, including change in market conditions and market requirements," the company said.

According to Pos Malaysia's website, the company has since Friday (April 1) resumed its international outbound services to more than 200 destination countries and territories.

The international outbound services comprise services for international air mail, international small packet, flexipack international, international air parcel and express mail service (EMS).

The resumption is in tandem with the reopening of Malaysia's borders, which is in line with the country's transition into the Covid-19 endemic phase from the pandemic status.

While the fuel surcharge increase does not apply to international air mail, a current temporary surcharge introduced since 2021 due to the pandemic is still applicable.

As for EMS, the applicable surcharges are the existing 15% fuel surcharge and 15% handling surcharge, Pos Malaysia said.

Shares of Pos Malaysia shares traded unchanged at 65.5 sen on Thursday (April 7), valuing the group at RM512.72 million.

Pos Malaysia's latest annual report showed that DRB-Hicom Bhd owned a combined direct and indirect stakes of 53.49% in the company.