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Pos Malaysia is getting ready to make a few changes. Starting from the last quarter of 2025, the national post and parcel service will be running several Proof of Concept (POC) tests aimed at finding new ways to stay relevant in an era where people hardly send letters anymore.
Group CEO Charles Brewer admitted the company is in a tough spot. Mail volumes have crashed by 79% since 2012 — back then, the average Malaysian household got 173 letters a year. Today, it’s just 27.
“At the same time, the number of customers visiting our post offices continues to decline, while the parcel delivery market has become unsustainably crowded with more than 100 licensed operators,” he said during a recent media briefing.
Three New Trials Coming Up
To tackle this, Pos Malaysia will test out three new business models. The first involves merging its mail and parcel delivery networks into a single system. At the moment, about 45% of the integration is done, and full completion is targeted for 2028. Brewer said this move isn’t just about efficiency — it’s also about lowering delivery costs, boosting capacity, and cutting emissions.
The second trial will take place in Sungai Siput, Perak, where Pos Malaysia will deliver mail on alternate days instead of daily. Running from 1 November 2025 to 31 January 2026, the POC will include standard, non-standard and registered mail.
“Alternate-day delivery is already being used successfully in other countries. It aligns with changing mail volume trends, lowers costs, reduces congestion, and cuts carbon emissions,” Brewer explained.
The third POC will focus on the retail network. Eight post offices will be closed and replaced with 13 pick-up and drop-off (PUDO) points run by agents and partners like Mail Boxes Etc (MBE), CollectCo, and ATX. The affected branches are spread across Perak, Selangor and Kuala Lumpur.
These PUDO points will offer the same services as post offices do, except ASNB, Shared Banking, Remittance, and road tax and license renewal.
“Our retail network is one of the largest in Malaysia, with 1,173 touchpoints including post offices, Pos Mini and Pos Agents. However, it is no longer financially sustainable in its current form. By partnering with local agents, we can maintain nationwide coverage while creating opportunities for small businesses to thrive,” he added.
Best practices: Pos Malaysia is taking notes from other postal operators
While the changes may sound drastic, Brewer was quick to reassure that no retrenchments will happen during the trial. Any excess staff will be reassigned to different roles within the organisation. He added that Pos Malaysia is learning from the experience of postal operators abroad — from Scandinavia to the UK and Australia — to see what worked and what didn’t before adapting those lessons for local use.
“We spoke with postal operators that have already undertaken this approach to learn what worked and what did not, so that through the POCs we can apply those lessons to our own operations,” he said.
An unmatched physical network to stay ahead of competitors
When asked how Pos Malaysia is positioning itself to compete with private courier players like Ninja Van, Shopee Express, and DHL, Brewer highlighted the national post and parcel service’s network that extends into remote areas of the country.
“While private couriers have extensive networks, they cannot match the sheer physical reach of Pos Malaysia, especially in rural and remote areas.
“With an unparalleled delivery network that reaches every single address in Malaysia, Pos Malaysia can serve e-commerce sellers who want to tap into the entire national market, not just urban centres. For example, Pos Malaysia is often the only cost-effective way to fulfill orders to East Malaysia and rural villages in Peninsular Malaysia. Private couriers either don’t serve these areas or charge a significant premium,” Brewer explained.
Going green in a big way
Beyond keeping the mail moving, Pos Malaysia is also looking to position itself as a leader in sustainability. The company said it is proud of the progress made so far, with changes already happening on the ground.
For one, Pos Malaysia has been building up the largest electric vehicle fleet in Malaysia’s logistics industry, with 1,252 e-bikes and 264 e-vans already out on the roads. Together, they’ve delivered 10.8 million kilometres worth of parcels and letters without leaving a trail of carbon emissions — the equivalent of circling the Earth 270 times. The company has set itself an ambitious target: to convert all its vehicles to electric and achieve 100% green first and last-mile deliveries by 2030.
Sustainability efforts don’t stop there. Trucks and vans are now fitted with telematics systems to monitor their movements and driver behaviour, which helps reduce idle time, improve safety and lower emissions. On top of that, Pos Malaysia has also started greening its buildings. Seventeen facilities are now equipped with solar panels, which will increase the company’s renewable energy mix to nearly 7.5% and help avoid more than 2,900 tonnes of carbon dioxide emissions every year.
Brewer stressed that all these efforts — whether through trials or green initiatives — comes down to ensuring Pos Malaysia remains relevant and sustainable, both for its 16,000 employees and for the millions of Malaysians who still rely on postal services.
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