PETALING JAYA: Pos Malaysia Bhd
faces a challenging operating environment, caused by several structural and competitive hurdles.
Kenanga Research noted a primary concern is that the postal company’s conventional mail business continues to struggle to remain viable in the digital age.
Not helping is the decline in its international mail segment, where volumes fell 7% due to geopolitical tensions and structural regulatory changes in United States.
Pos Malaysia’s courier segment is also under significant pressure from intensifying pricing competition as players like J&T Express and Ninja Van have undercut rates to gain market share, explained the research house.
The situation is further complicated by major eCommerce platforms, such as Shopee, investing in their own in-house delivery capabilities, thereby reducing their reliance on external service providers like Pos Malaysia.
“Its cost-cutting measures are insufficient to counter its weakening core business revenue.
“While we applaud its venture into ‘POS Shop’ convenience stores through transforming its existing Pos stores, we are concerned about the gestation period of the stores to achieve operational efficiency,” Kenanga Research stated in its latest report on the logistics group following the release of its first quarter of financial year 2026 (1Q26) results.
Kenanga Research added that Pos Malaysia intends to focus on network optimisation to reduce the cost of end-to-end delivery and service differentiation to accelerate market share growth for its parcel segment (It is offering better rates than traditional mail, which is slowly declining under the digitalisation trend).
Despite these, Pos Malaysia’s performance in 1Q26 showed signs of improvement, with the company reporting a narrower core net loss of RM19.6mil, a significant 52% improvement year-on-year (y-o-y) and a 75% improvement quarter-on-quarter.
Total revenue for the quarter rose by 7% y-o-y to RM501.4mil, driven by stronger performance across all primary service divisions.
The quarterly improvement was largely attributed to a “festive boost” from the Chinese New Year and Hari Raya Aidilfitri celebrations, which led to higher parcel volumes handled by Pos Malaysia.
Kenanga Research highlighted Pos Malaysia’s postal segment benefited from a one-off mailing project in January while parcel volumes grew by 25% due to market share gains in the business to business and business to consumer sectors.
Its aviation segment contributed positively, with revenue rising 16% y-o-y, fuelled by demand for umrah charter flights.
