Postal law rejig to improve delivery service

The Digital Economy and Society Ministry has directed Thailand Post to revise the arcane Postal Act of 1934, in a bid to better regulate postal and logistics services and improve service quality, in accordance with the business landscape.
The draft is expected to be completed next year, said Thailand Post president Dhanant Subhadrabandhu.
The bill title will differ from the original law as the business landscape has dramatically changed, he said.
Mr Dhanant said the Postal Act has not been revised for almost 100 years and needs an update.
“The revision should help to reshape the competitive landscape and benefit the country,” he said.
Mr Dhanant said competition in the local express delivery market continues to intensify, starting in 2022 when several foreign players in Thailand launched below-cost pricing strategies, which Thailand Post deemed “predatory pricing strategies”.
He said the strategies affected the market landscape and could damage the logistics ecosystem in the long term.
Global logistics players have increased their market share despite huge losses, said Mr Dhanant.
This competition affected service quality in the parcel delivery market, he said.
Thailand Post commanded the biggest share with 27% of the domestic logistics market last year, with the rest dominated by foreign logistics operators, especially those from China.
Mr Dhanant said the express delivery business must be properly regulated to prevent below-cost pricing practices and to create a guarantee of service quality for consumers.
“Thailand Post acknowledged the threats the past few years, leading to the implementation of our turnaround roadmap during that time,” he said.
Mr Dhanant said without proper regulation of the express delivery business, the domestic market risks being monopolised, which would harm consumers.
In addition to delivery service, Thailand Post provides support to residents, especially during crises, delivering medicines and medical supplies and equipment nationwide, as well as distributing fruit and goods from farmers to consumers.
He said updating the law will pave the way for greater provider responsibility in terms of service quality.
From 2022 to 2024, the express delivery market is estimated to post average annual growth of 11.2%, meaning the standard of service quality is expected to become more important, said Mr Dhanant.