Pos Malaysia banking on USO compensation

Kenanga Research remains cautious after Pos Malaysia delivered a disappointing FY25 performance, weighed down by higher-than-expected losses in the fourth quarter.

PETALING JAYA: Pos Malaysia Bhd, which has been in the red since the financial year ended Dec 31, 2019 (FY19), is expected to keep its losses below RM200mil over the next two to three years as it continues to engage with the government on universal service obligation (USO) compensation, according to Kenanga Research.

USO refers to the government-mandated requirement for Pos Malaysia to provide nationwide postal services, including in unprofitable rural areas, with compensation paid to offset the cost.