Pos Malaysia Bhd is expected to continue to record losses despite successfully reducing its volume in the latest financial quarter, due to fierce competition and weak demand.
Kenanga Investment Bank reported that Pos Malaysia is facing competition from new couriers offering lower rates, while cost-cutting measures have not yet been able to cover the weakness in core revenue.
The bank said it supports Pos Malaysia's efforts to enter the convenience store business through the transformation of existing branches, but is concerned about the maturity period needed to achieve operational efficiency.
The company's share price has also continued to trend downward following heavy losses that have lasted more than half a decade.
The company's conventional mail business is still struggling in the digital era with domestic mail volume shrinking 11% in the quarter ended June 30, 2025, while international mail volume remained flat.
Pos Malaysia also recorded a pre-tax loss of RM42.3 million for the second quarter of the 2025 financial year ended June 30, a decrease of 17.4% compared to the previous year.
The retail segment remained stable year-on-year, supported by operational efficiency, digitalization and new service offerings in line with changing customer behavior.
