Postal Services (Amendment) Bill

Order for Second Reading read.

4.20 pm

The Senior Minister of State for Communications and Information (Ms Sim Ann) (for the Minister for Communications and Information): Mr Speaker, on behalf of the Minister for Communications and Information, I beg to move, "That the Bill be now read a Second time."

Sir, the Postal Services Act, or PSA for short, was enacted in 1999. It was amended in 2007 to provide a legislative framework for the liberalisation of the Postal Services sector. Since then, market and technological changes, especially the rise of e-commerce, have transformed the postal landscape. While we might receive fewer letters now, more of us are shopping online and parcel deliveries have become part of everyday life

The volume of parcel delivery is expected to intensify given that domestic e-commerce parcel volume growth in Singapore is projected to grow at a compound annual growth rate of 16% from now to 2025. The existing letterbox infrastructure is not designed for parcel delivery. And the current market for locker infrastructure is fragmented and unable to support projected growth. It is thus timely to update the PSA in response to the evolving landscape of last mile delivery amidst increasing digitalisation.

Parcels are typically delivered to the doorstep. However, based on industry estimates, about 7% of deliveries are unsuccessful, causing inconvenience to consumers and reducing the productivity of delivery service providers, or DSPs. Self-collection parcel lockers are also currently concentrated in high-traffic commercial areas catering to only 5% of total parcel volume and leaving residential areas under served. These parcel lockers, which are operated by individual DSPs are also not accessible to other operators, resulting in a fragmented market and infrastructure duplication.

To enhance DSPs' productivity and efficiency of Singapore's urban logistics sector, my Ministry previously announced that 1,000 parcel lockers will be rolled out in HDB estates, MRT stations, bus interchanges and Community Centres and Clubs by the end of this year.

We carefully considered the options available in arriving at the solution. Currently, SingPost is the only public postal licensee, or PPL, and this arrangement has served us well in a time where the postal service was used predominantly for the conveyance of letter mail. The rise of e-commerce and a multitude of players in the logistics sector innovating and seeking to deliver value to consumers have ushered in a different era.

The vibrant last mile delivery sector has thrived with open and free competition and should be given room to flourish. It is therefore our priority to facilitate an environment where all players can participate equitably. An open access nationwide parcel locker network, or Network for short, which any DSP and e-commerce marketplace can use will provide greater convenience and options for parcel deliveries while complementing the existing letterbox infrastructure. To best serve the interest of consumers and the industry and to avoid conferring an unfair competitive advantage upon any single player, Pick Network Pte Ltd, or Pick, was set up as a fully owned subsidiary of IMDA to establish, install, operate and maintain the Network as public infrastructure.

This will ensure the neutrality of the Network and also allow it to be freely accessible to the industry and all consumers.

At this point, Sir, I would like to assure the House that it is not our intent for Pick to compete with DSPs. Pick is solely an infrastructure provider and operator and will not be involved in the conveyance of parcels, which is the core business of DSPs. Instead, Pick will give DSPs more options for the last mile delivery of parcels and increase their productivity and efficiency with fewer missed doorstep deliveries. The Network also includes an interoperability platform, which private locker operators can be part of.

Further, any DSP is welcome to use Pick's lockers. Pick has been working with all these partners to come on board the Network. This will ensure open and fair access to Pick's lockers, provide an opportunity for individual operators to extend their reach beyond their own parcel lockers and help level the playing field in the parcel last mile delivery market.

We are one of the first countries in the world with a nation wide open access locker network. In this Bill, we seek to introduce a regulatory framework which would facilitate the deployment of the network in a timely fashion as well as ensure the safety and security of the network

In addition, while the Network is operated by an IMDA subsidiary, there will be regulatory oversight of the Network and Pick under the Bill. The Bill also takes into consideration feedback from consultations with industry and the public. For example, a key change made was to allow the public to return their items at the Network's lockers at HDB estates and Community Centres and Clubs for greater convenience. This widens options for consumers and saves time and trouble.

Sir, I will be elaborating further on the key provisions of this Bill which aim to first, facilitate the deployment of a secure open access network for last mile parcel deliveries for consumers and DSPs. Second, level the playing field for the parcel last mile delivery market. Third, support the continuity of postal services by ensuring the provision and maintenance of letterbox infrastructure. And fourth, streamline and clarify existing provisions in the PSA.

The first set of amendments pertains to the Network while the other amendments address operational issues related to postal services.

First, amendments related to the deployment of the Network. Clause 3 amends section 3A to set out IMDA's functions and duties with regard to the Network, which include ensuring that the Network is accessible, reliable, secure, affordable to use and well-regulated. Clause 11 introduces the new part 3A.

Today, IMDA as the postal authority, is conferred the exclusive privilege in relation to conveying letters and performing all related incidental services. The new section 23B gives IMDA the exclusive privilege of establishing, installing, operating and maintaining the Network. The new section 23C empowers IMDA to appoint a network operator to carry out the duties mentioned in section 23B, subject to any conditions specified by IMDA.

As a safeguard against any failure by the appointed operator to comply with the relevant provisions of the amended PSA or any conditions imposed by IMDA, the new section 23D allows IMDA to establish, install, operate and maintain the Network or any part of the Network.

The new sections 23H to 23K will introduce obligations on owners and developers of buildings or land designated as specified premises to provide suitable space or facilities and access thereto for the installation or maintenance of the Network. Given that space in public areas is already limited. Specified premises includes the public places where the public parcel lockers previously announced by my Ministry will be located.

The new sections 23M to 22O allow IMDA to issue codes of practice, written notices and written directions concerning the provision of an access to space for the Network. Non-compliance with any such written notices or written directions without reasonable cause is an offence.

Respondents to the public consultation on the draft Bill raised concerns on the safety and security of the Network, citing the possibility of hazardous materials and illicit items being placed into the Network's lockers. To address these concerns, the Bill introduces offences relating to the Network and converse enforcement powers in relation to these offences, which are largely similar to those in place for postal services.

For example, IMDA will have the powers to direct the network operator to search the Network's lockers and to detain any suspected harmful items found in them. If any item in the Network's lockers is suspected to pose a threat to public security or public health, the Police and authorised IMDA officers will have the power to search the Network's lockers and seize the item. It will also be an offence for any person to place a prohibited item as specified under the amended PSA in Pick's lockers.

Other offences are introduced to protect the Network and ensure the security and integrity of parcels being delivered into the Network. For instance, the new sections 39B and 39E make it an offence to damage or tamper with the Network to intercept or obstruct the delivery or collection of parcels, and to wilfully remove, destroy or damage the Network's lockers or related installations or related software. Under the new section 39H, officers, employees, agents or contractors of the Network operator or a DSP may also be penalised with a fine and/or jail term if they destroy, steal or throw away parcels in Pick's lockers, or wilfully open or cause to be opened parcels or lockers without authorisation.

Sir, I will now take the House through the second set of amendments aimed at levelling the playing field for the parcel last mile delivery market.

Some industry players have requested access to the letterboxes to deliver e-commerce items which can fit into existing letterboxes. We consider this to be reasonable, as wholesale access to letterboxes for letters is already in place today. Regulating wholesale access for the delivery of non-letter items also complements the introduction of the Network. Under the new section 7A, a PPL can be required via licensing terms and conditions to offer wholesale access to DSPs for the delivery of small packets and parcels which can fit into letterboxes, in addition to its existing provision of wholesale access for the delivery of letters. This will allow other industry players to have access to letterboxes, and provide consumers and the industry with more choices in the receipt and last-mile delivery of parcels. The amended section 24 will enable IMDA to regulate such wholesale access through codes of practice or standards of performance, including rates and charges. This will ensure that charges are fair and that consumers will ultimately benefit.

Let me now turn to the third category of amendments, which support the continuity of postal services by ensuring the provision and maintenance of letterbox infrastructure.

While the digital economy has changed the way we live, work and play, postal services still play a key role in communications and the conveyance of goods through the postal network, supported by a letterbox infrastructure.

Today, under section 16 of the PSA, building developers are required to provide letterboxes before a building is handed over to its owner. However, it is unclear which party is responsible for replacing letterboxes which are damaged or in need of repair, or providing additional letterboxes when a lot within a building is subdivided. Clause 8 amends section 16 to provide greater clarity on the provision and maintenance of letterboxes by introducing obligations on building managers, referred to as "applicable persons" in the Bill, to ensure that there will be no lapses in the delivery of letters due to inadequate letterbox infrastructure. Non-compliance with these obligations is an offence.

Sir, our review of the PSA covers a fourth and final area: streamlining and clarifying existing provisions to strengthen regulatory oversight of the postal sector. I will highlight key examples here.

Clause 4 amends section 5 such that persons providing an intra-organisational mail-room service or a messenger service are not required to obtain a licence under the PSA. This is in recognition of the fact that both are business support services with a narrower scope of activity than what licensed Postal Services Operators offer. Mail handling by such services is also not the core business of an organisation and mail volumes are typically low, at around fewer than 50 pieces a day, compared to the three million mail items that SingPost handles daily. This amendment will reduce regulatory obligations on companies with such services and aligns Singapore with other jurisdictions such as the UK, which does not license such services.

Clause 6 amends section 11 to clarify that only specified PPLs authorised under their licences may provide for the postal remittance of money. Similarly, clause 10 amends section 19 in relation to the issuance of postal stamps bearing the word "Singapore". These amendments cater to a scenario where there is more than one PPL.

Section 45 of the PSA allows the Minister to issue directions to any postal licensee in relation to the exercise of the licensee's functions under the PSA. Clause 17 amends section 45 to make it an offence for postal licensees to fail to comply with directions given by the Minister. The maximum fine for such an offence is $1 million, and a maximum further fine of $100,000 for each day or part of a day should the offence continue after conviction.

Sir, the proposed amendments to the PSA will ensure that a robust regulatory framework is in place for the Network, which will be key public infrastructure in our new e-commerce landscape. The amendments will provide the industry and consumers with the confidence to use the Network's lockers, and create an improved experience for DSPs and consumers alike. Stakeholders will gain clarity on requirements for letterbox infrastructure, and the urban logistics sector will also stand to gain from access to letterboxes. As e-commerce is a sector that looks set for further growth, these amendments are timely and will put us in good stead to capture opportunities in the digital future. Sir, I beg to move.

Question proposed.

Mr Speaker : Mr Patrick Tay.

4.36 pm

Mr Patrick Tay Teck Guan (Pioneer): Mr Speaker, Sir, I rise in support of this Bill, which amends the Postal Services Act. The amendments are a timely response to the evolving postal landscape due to the growth in e-commerce deliveries and accelerated by the COVID-19 pandemic.

During the circuit breaker period last year, there was a sharp decline in face-to-face social interactions. As a result, many had resorted to purchasing parcels and gifts online to be couriered to friends and/or extended family as a means of keeping in touch with them. We also witnessed an increase in purchases made through e-commerce platforms, for work-from-home equipment such as monitors, desks, chairs and so on, and also essential items and groceries for household needs and use. If not for the instrumental role that the postmen and last mile delivery personnel played then and continue to play today, we would not have been able to receive our purchases and/or parcels from our friends and loved ones in a timely fashion.

However, as circuit breaker measures were lifted, and people started commuting more, there was a corresponding increase in failed doorstep deliveries. This has practical implications for the logistics services' providers as repeated deliveries have to be made, which is a drain on both time and resources. For recipients of the parcels, they would be inconvenienced if they needed the items urgently.

On my end, I also faced an issue for such deliveries. Just last month, my family had purchased a product from an online seller which cost less than $50. It was for an urgent use and we even paid for a special delivery package by SingPost for the item to be delivered to my home. On the day of expected shipment, even though the parcel was tagged and traced as delivered and I received a notification on the delivery, we eventually did not receive the item from SingPost. We contacted the seller and he said he checked and SingPost said they had delivered. I then had to contact SingPost to inform them that we did not receive the item and that it was for urgent use. The investigation took more than three days and we had to go ahead to make a repurchase due to the urgency. On the fourth day, we were told by SingPost that their postman had mailed the product to the wrong address.

There was little recourse for me, as the seller who had paid SingPost to carry out the delivery was supposed to be the correct party to file a complaint and/or claim with SingPost, even though I had already paid the seller for the product. Legally, I needed to file a claim with the seller who in turn needed to counterclaim with SingPost for the negligent act.

The multiple parties and various payments involved in this transaction made the recovery of that product or any ensuing claims a cumbersome exercise. I did not pursue the matter and I just had to settle with two sets of the same product. I believe I am not the only one faced with such a problem.

Some online companies or platforms do a better job by not releasing funds to the seller until the buyer receives the item. Such is the nature and challenge for e-commerce and online purchases. A serious situation of "caveat emptor". Perhaps the postal authority should re-look at such scenarios and establish better mechanisms for dispute resolution or mandate the way transactions are carried out so that buyers are not left with little or time-consuming recourse as many of these items may be of small or lower value purchases.

It is against this backdrop that I applaud this Bill which seeks to expand the scope of IMDA's exclusive privilege to include the installation and ownership of the Public Parcel Locker Network, hereinafter referred to as the "Network". There will also be powers for IMDA to appoint an operator for the installation, operation and maintenance of the Network.

I understand that the Network will be implemented in certain areas, namely, HDB estates, bus interchanges, train stations and/or Community Clubs managed by the People's Association. With the Network, postmen and delivery persons will deposit the parcels directly at the Network, for residents' collection at their convenience. The Network will cater to the growing demand of e-commerce purchases, while simultaneously alleviating the problem of failed doorstep deliveries.

While the Bill is no doubt commendable, I have some queries for the Minister, which may be broadly categorised into the following areas. One, security issues associated with the Network; two, convenience and/or public policy matters; and three, employment issues arising from the development of the Network.

First, security issues. From a security perspective, how would the Network be implemented? Would the Minister be able to share some of the technological safeguards in place to ensure that the parcel is not tampered with, given that multiple service providers have access to the same parcel box? Perhaps we could consider the installation of additional CCTVs? These are security issues which are less prevalent in the context of traditional letter boxes, where postmen simply slot letters into the letter boxes and only residents who have the keys to their letter boxes can collect the said letters.

Additionally, in cases of pilfering, be it by delivery personnel, pranksters and/or others who have access to the parcel boxes, who shall be liable for such losses and what recourse do the rightful owners have?

Further, we also note that certain prescribed classes of parcels will be prohibited from being placed in the Network for safety reasons. While there are powers conferred upon the Network Operator, the Police and IMDA to search, open and seize such parcels, however, how shall this be monitored and/or enforced practically, given that most of the parcels are usually packaged before being delivered? We need to ensure the safety of our postmen, last mile delivery personnel and residents who deliver and collect such parcels.

Second, convenience and/or public policy matters. Next, the Network is presently to be established at HDB estates and/or public areas. While residents living in HDB estates will no doubt stand to benefit from this initiative, are there plans to extend the same to those living in private estates and condominiums? Some private estates and condominiums are within proximity to HDB Housing estates and some may be keen to have these parcel boxes in their own precincts.

Additionally, how will MCI and IMDA provide the necessary support to residents, in particular, senior citizens to facilitate such transition and especially when the packages may be heavy and the intent for home delivery is to minimise the challenges of carrying the heavy load?

Third, employment issues arising from the development of the Network. From an employment perspective, while I am confident that the Network will make the jobs of our postmen as well as last mile delivery personnel less strenuous due to failed and repeated deliveries, it will also bring about a fresh set of challenges for our postmen and delivery personnel, such as adapting to technological advancements like enhanced tracking, electronic signatures and so on, and picking up new skill sets to multi-task and multi-skill. I am also particularly concerned about the wages, the welfare and work prospects of these postal and delivery personnel, in particular, the overall attractiveness of this sector which continues to play a crucial role as we navigate the pandemic, thrive in the next normal of a low touch economy and grapple with an ageing population.

I would like to take this opportunity to encourage employers to take a keen interest in the upskilling and retraining of workers and to transform and strengthen the image and professionalism of this industry as well as for our workers to continue to stay able, agile and adaptable, even as Singapore forges ahead with digital transformation.

On NTUC's end, we are committed to working with companies, through the development of Company Training Committees, to ensure that our postmen and last mile delivery workers are adequately trained to perform their delivery roles once the Network is established.

I submit that regulators and employers of these postal and last mile delivery workers to raise their wages, welfare, and work prospects as they are essential workers in the next normal of a low touch digitalised economy. Sir, clarifications notwithstanding, I stand in support of this Bill.

Mr Speaker: Mr Gerald Giam.

4.45 pm

Mr Gerald Giam Yean Song (Aljunied): Mr Speaker, I can see the need for more parcel lockers to be set up near housing estates. Sometimes, deliveries get delayed because residents are not at home to receive the parcel, or they do not hear the courier at the door. This will require rescheduling to another delivery date. I also remember occasions when I would receive a delivery note in my mailbox to pick up a package from a POPStation, which is a 30-minute round trip by bus and foot from my home, when I had made it a point to be home when the original delivery was made.

The pandemic, ironically, seems to have ease this problem, because couriers, now simply leave the package outside the door in the name of contactless delivery to prevent the spread of the virus. However, I worry that these delivery issues may return once safe management measures ease. In any case, especially in public housing estates, leaving packages unattended at the door risks parcel theft.

I therefore support the plan to situate more parcel lockers near housing estates. However, I have several queries which I hope that Senior Minister of State will address. These cover the effect of the creation of public parcel locker network on market competition and innovation and the coverage of parcel lockers in all housing estates.

First, on market competition. While I welcome the creation of the Network, I would like to more clarity on the role of Pick Network Pte Ltd, in the existing ecosystem. Pick is a wholly owned subsidiary of IMDA, a which is a Government Statutory board. SingPost currently has POPStations, and Blu World Pte Ltd has a network of blue lockers. They are part of an existing parcel local network, the Locker Alliance, which has already set up parcel lockers in various locations across Singapore. What was the reason why IMDA did not contract these private sector players to provide more public parcel lockers near housing estates? They already have the experience of running parcel lockers and could take on the investment risk and bear the cost of expanding the network.

Is Pick's mandate to fulfil a need that is distinct and complementary to the services already provided by the private parcel locker providers, or will it be competing with them? If competition is part of this mandate, will it be contravening the Yellow Pages rule? This rule dictates that Government agencies should exit from market segments, which already have active private sector players.

[Deputy Speaker (Mr Christopher de Souza) in the Chair]

I note that Senior Minister of State said that it is not the Bill's intent for Pick to compete with delivery service partners, but does this non-competition extend to providers of parcel lockers? Going back to first principles, I would like to find out more information about the process by which Pick was created and contracted to run the network.

Was there a public tender for the deployment and operation of a public locker network, which Pick eventually won? How long was the initial contract before? Are there plans for a subsequent tender, in which another public postal licensee or licensees can participate in? Is Pick expected to be profitable in future? If not, how much has IMDA spend and how much will it be budgeting every year to subsidise their operations of Pick?

Next, I have some questions for the Senior Minister of State about the location and coverage of the network lockers. While residents living in HDB estates will be served by the Network, how will the Network be implemented in condominiums and landed estates if at all? Will parcel lockers be set up in condominiums or in public spaces near condominiums? Given that 16% of resident households live in condominiums, we should strive to ensure coverage of this segment. Another five percent of residents live in landed housing. Will they be served by public parcel lockers?

Next, I understand that Pick will be in charge of the maintenance of these lockers. Given the COVID-19 situation, Pick should arrange for their own disinfection and cleaning of the high touch surfaces of these lockers regularly. Also, I hope that Pick clearly indicates that customer support contacts on their lockers and makes it convenient for customers to get in touch with them. This is so, that Town Councils or Members of Parliament do not get calls from members of the public to fix malfunctioning lockers.

There may also be certain individuals who are heavy users of delivery services – for example, people who run small redistribution businesses from their homes. What measures are in place to prevent overuse by these individuals who could end up monopolising the limited slots?

Mr Deputy Speaker, the public parcel locker network should fill in gaps, which the private sector is unable to fill, rather than duplicate their coverage. It should seek to drive innovation in the sector, for example, perhaps in future we could see the creation of cold lockers to facilitate the delivery of groceries and foodstuffs from supermarkets, or heated lockers for food deliveries.

Locker operators could also consider providing dual functions for their lockers, for example, as receptacles for return items or even depositing electronic waste, given that existing e-waste bins are even less accessible then private parcel lockers.

The creation of the Network should ultimately drive the industry forward and serve the public interest, given that public funds have already been used towards this creation. ROI must come in the form of more convenient and affordable parcel pick up for consumers; not just profits for a select few players, whether publicly or privately owned.

Mr Deputy Speaker: Ms Joan Pereira.

4.51 pm

Ms Joan Pereira (Tanjong Pagar): Mr Deputy Speaker, Sir, the decision to install a nationwide network of parcel lockers is expected to be widely welcomed. Such lockers offer an additional mode of delivery to busy Singaporeans and residents who prefer to pick up their items in their own time and not have to wait for their deliveries at designated places as they may be on the move.

In order to increase the accessibility of these lockers, MRT stations and community centres have been selected as two of the main locations where lockers will be installed. This will indeed provide much convenience. As these are places where traffic is high, my concern is that hazardous materials which might cause harm and danger to commuters could be deposited there. How does IMDA ensure that no hazardous materials will be sent via the Network? Would the Ministry share with us the security process undertaken by the vendors?

Next, the bulk of these deliveries are transacted online. How do the vendors protect its customers' data from cyber threats, for example, hacking of their databases? Also, how can the vendors ensure the security of the deliveries, so that the items can reach the intended recipients? Had there been incidents where the locker systems were breached and thieves were able to make off with any parcels?

Finally, I would like to ask if the design of these lockers will be user-friendly for the elderly? With our rapidly ageing population, it is important to ensure that from the design stage, consideration of the needs of senior citizens is taken into account so that they can benefit from the set-up of these parcel lockers. For example, will it be possible to indicate elderly- and disabled-friendly lockers which are positioned at the appropriate height levels so that recipients can choose to have their parcels sent to such lockers?

I realise that many elderly may not know how to use these parcel lockers to retrieve their delivered parcels. Thus, it is important that a step-by-step guide in large fonts be placed at the parcel locker station area which is very visible and at eye level so that they can read the guide while unlocking the lockers. Sir, in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] Most parcels are ordered through online transactions. How will vendors protect the customers’ data from internet threats? Have there been any incidents of parcel locker systems being damaged or stolen from? Due to our rapidly ageing population, we must ensure that we consider the needs of the elderly from the design stage, such as installing usage instruction guides in big fonts near the parcel lockers.

(In English): Sir, I conclude with my support for the Bill.

Mr Deputy Speaker: Ms Ng Ling Ling.

4.55 pm

Ms Ng Ling Ling (Ang Mo Kio): Mr Deputy Speaker Sir, I declare my role as a consultant in healthcare transformation.

I would like to begin my speech by sharing three numbers – 176,000, 16,000 and 11. What makes these numbers worth mentioning is that they are the numbers reported by Lazada from their 11/11 sale in 2020 for Singapore alone.

Specifically, in the first 11 minutes of the online sale, 16,000 items were sold every minute amounting to a total of 176,000 items purchased by Singaporeans in the first few opening minutes of the sale. The 2020 E-commerce Payments Trends Report for Singapore by JPMorgan estimated that the value of business to consumer e-commerce has grown from US$4.8 billion to US$6.1 billion, or a US$1.3 billion rise, between 2017 and 2019.

The growth of e-commerce has resulted in more deliveries. Delivery service providers have had to step up to meet the increased volume and maintain service standards throughout the delivery process. We can expect this to be the new norm, moving forward, and hence, the introduction of the Postal Services (Amendment) Bill is a timely one.

The Postal Services (Amendment) Bill establishes a framework to build and operate a nationwide parcel locker network, or what I will call NPLN for short, to help domestic last mile delivery at scale. This is intended to benefit Singaporeans as delivery services will hopefully improve with increased access and reliability.

However, I have three clarifications to ask the Ministry in this proposed amendment Bill.

Like the hon Member Joan Pereira, firstly, I would like to ask will the parcel lockers have senior and disability friendly features and access, so that our seniors and persons with disabilities can also benefit from the convenience like everyone else?

I would like to suggest adoption of assistive technologies as a requirement in the NPLN so that persons with disabilities and seniors can easily access the parcel lockers safely and confidently. Some specific accessibility considerations can include:

(a) placement of touchscreens that are convenient for the wheelchair-bound;

(b) pre-selection and designation of certain lockers for the wheelchair-bound, so that they need not worry about not being able to reach the locker for their packages; and

(c) to include speech and tactile interfaces for the hearing and visually impaired.

Another usage is for our ageing population. With more seniors aging-in-place, self-management and home-based care for the management of chronic diseases will become increasingly common and the last mile delivery of medication will be useful. SingHealth, together with Integrated Health Information System or IHiS for short, have developed their Prescription-In-Locker Box or PILBOX stations to allow patients to collect their medication refills anytime, without having to queue at the polyclinic pharmacies.

While this is a good solution, PILBOX currently is only available at five polyclinics under SingHealth. I would like to ask how far the NPLN can also be used to scale objectives like the PILBOX, for medication delivery, to bring convenience to our seniors?

My second clarification is similar to the hon Member Mr Patrick Tay's concern on how the security of the NPLN be effectively managed? In December last year, a hack on a service provider that maintained a network of package lockers across Moscow and Saint Petersburg resulted in more than 2,700 lockers being unlocked. While no packages were reported lost, the incident highlighted the need to ensure securing both the software and hardware from malicious actors.

I will like to propose to include stronger cybersecurity requirements for the NPLN. Some of these requirements could be in the form of cybersecurity-by-design in the software, hardware and infrastructure. This is to ensure that the cybersecurity best practices are adopted at the very start of the network implementation. Stronger penalties also to be in place specifically for cybersecurity related breaches to encourage operators and service providers to step up in their cybersecurity measures. And requirements for contingency plans to secure parcel lockers should a security breach happen, resulting in parcel lockers being compromised.

My last clarification is in the area of operating standards and interoperability of the NPLN. An open access parcel locker network will make pick-up and drop-off of parcels convenient for Singaporeans as they are not limited to any specific delivery service providers. I would assume that this will require common operating standards, compatible technology platforms or systems which delivery service providers would need to adopt to fully take advantage of the NPLN. I note that IMDA’s wholly-owned subsidiary, Pick Network, will ensure that the delivery service providers have fair and open access to the network .

Nonetheless, we will need to be mindful that such an arrangement will not stifle innovation, or worse, create an unintended monopoly by the network operator which may increase the cost of operations for the delivery service providers, especially if they are SME Internet merchants. I would like to urge IMDA to continually innovate and keep the NPLN open so that it can evolve together with the ever-changing demands of customers. I also hope that IMDA will allow the delivery service providers and SME Internet merchants to further innovate their solutions and apps on the NPLN for continued last-mile delivery innovations.

The strong adoption of e-commerce by Singaporeans before and during the pandemic has highlighted the need to address inefficiencies, ensure reliability and scalability in last-mile deliveries.

With the continued growth of e-commerce, evolving consumer expectations, the Postal Services (Amendment) Bill is a welcome one. Nonetheless, as we put in place the infrastructure for tomorrow, we must not forget the needs of the seniors and persons with disabilities of today. As we build solutions for the future, we cannot afford to ignore the security risks present today. More importantly, the amendment Bill must prepare Singapore’s logistics network to meet the demands and complexities of the fast-growing e-commerce landscape. I hope that these efforts and my suggestions can help solidify Singapore as a mature and attractive e-commerce market in Asia. On that note, Mr Deputy Speaker, I support the Bill.

5.02 pm

Ms Janet Ang (Nominated Member): Mr Deputy Speaker, most of us would have experienced staying home to wait for a package to be delivered and it can be frustrating. Deliveries mostly happen during work hours. So, customers often miss the delivery window, then worry that their packages are not safe. And, with the increasing volume of e-commerce transactions which is projected to reach US$2.9 billion in 2021 according to Statisca, the urban logistics of getting the packages to the intended recipients is going to grow in complexity and, very likely, so in cost and carbon emission. I recall that, back in 2017, when I was still with IBM, the IBM Garage worked with the Singapore start-up, Freshturf, to study the issues from the first-mile to last-mile logistics and to explore technology solutions like blockchain to design the concept of federated locker networks and to create a secure way of making these lockers available to any delivery company wishing to use them. While this prototype never got commercialised, Freshturf co-founder Kevin Lim, did share that they learnt much from the prototyping and went on to develop solutions targeted for specific logistics problems.

We have come a long way since 2017 and COVID-19 has accelerated e-commerce even further. Hence, the Amendment to the Postal Services Act is very timely. Here are my thoughts on the three key points in the amendment.

The nationwide parcel locker network will transform Singapore’s last-mile delivery infrastructure. And the good part is that IMDA has implemented pilots in collaboration with e-commerce and logistics industry players in two HDB estates and the study has shown benefits for both consumers and industry players and the potential of a sustainable delivery eco-system. This is, in my opinion, an excellent example of public infrastructure that will ensure that all Singaporeans will be served as IMDA’s subsidiary, PICK, will install the locker networks in HDB estates, community centres and MRT stations and these will complement the commercial locker networks in commercial malls and office buildings.

Two, the PICK lockers will be accessible by all e-commerce and logistics service providers and, in so doing, facilitate competitive pricing and continued innovation of business models, services, regulation and technology adoption.

Three, there will be wholesale access to SingPost letter box infrastructure for non-letters, small parcels, under regulated terms and conditions. This will serve to level the playing field for delivery service providers as far as small parcels are concerned. In my view, another tick mark for this amendment.

In speaking with the Singapore Chamber of E-commerce, we have identified several areas which will still need continued adjustments. Some observations include the following.

One, many first- and last-mile operators are not doing well in terms of managing cost. The wholesale pricing of SingPost and the price of the PICK lockers can potentially help the operators on the cost side and we certainly hope that IMDA and the Government will help facilitate that.

Two, visibility of track and trace data of the packages for the consumers, coupled with the easy access for self-collection at lockers conveniently located near the consumers, will enhance end-user experience. Better user experience will increase the value consumers will be willing to pay for the service. So, my question is: how will IMDA ensure that PICK supports the smaller SME delivery operators to embrace digitalisation and improve productivity and, thereby, reduce costs ?

Three, logistics is a business driven by scale. We anticipate consolidation in the industry or the development of integrated services hub for urban logistics. How does the logistics Industry Transformation Map shape these developments?

Four, security is of increasing importance and, as my hon other Members of Parliament have mentioned ahead of me, how will PICK, SingPOST and IMDA handle the security checks of packages to ensure that there is no mischief? How will the PICK platform ensure interoperability with commercial players? And how will this platform enable our operators to go beyond Singapore?

Mr Deputy Speaker, notwithstanding these questions, I support the amendment of the Postal Services Act.

5.07 pm

Mr Don Wee (Chua Chu Kang): Mr Deputy Speaker, Sir, in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] I strongly support the Amendment Bill which will empower IMDA to install and manage our nationwide open access parcel locker network. With the Government in charge of the network, we can better harness the benefits of delivery aggregation and reduce facility duplication from competing private operators in certain locations.

This is a timely development in view of the exponential growth in e-commerce and the ever-increasing number of doorstep deliveries. It was estimated that the locker system will enable delivery drivers to make up to four times more deliveries per hour. This is a tremendous boost in productivity and will help solve the problem of manpower shortage in this sector. It will also greatly reduce our carbon emissions, in line with our environmental goals.

Presently, parcel lockers are mostly located in commercial areas and our residential areas are under-served since the private sector does not perceive it profitable to install lockers in housing estates. I welcome the plan to install 800 open access parcel locker stations in our HDB estates. This will bring much convenience to our residents.

For the SME suppliers, parcel lockers allow them to consolidate deliveries, which is efficient and save costs. I would like to ask if MCI would consider conducting a pilot to allow block-booking of a limited number of the lockers, for example, around 10 percent, so that certain retailers, such as online grocery shops, can have lockers as their "shopfronts" and advertisements at the stations.

(In English): Would the Ministry also consider installing cold storage parcel lockers, such as those set up in Finland? Groceries and temperature-sensitive parcels can be stored in closed, temperature-controlled lockers, which include freezer units.

I share the same hygiene concerns with Member Mr Gerald Giam earlier. The COVID-19 pandemic has highlighted the importance of hygiene. In some countries, lockers are sanitised with UV light and disinfectant after each use. I would like to ask about the maintenance and cleanliness of the lockers. Would the Minister share the main details about which entity will be responsible for their cleanliness and how standards will be maintained?

I am concerned with the security of these locker stations. I am glad that Senior Minister of State Sim Ann has addressed the security-related concerns when she explained the policy intent just now.

Next, what technology will these lockers be equipped with for access? Lockers can be opened with PIN numbers sent by SMS, Whatsapp, QR codes or via Bluetooth with an app on customers’ phones. We need to ensure that everyone, no matter how poor, can access the lockers. I would recommend that we standardise accessibility as much as possible. For example, these lockers should be opened by PIN numbers in case people do not have smartphones, which are necessary for QR codes. On the other hand, with our nationwide push to being a SMART nation, will IMDA be assuming that everyone will be using smartphones?

Finally, I would like to share some ideas regarding the use of these lockers. In some countries, parcel lockers will be used for purposes, such as recycling, particularly, personal electronic devices, consumer-to-consumer sales and delivering rental devices. In Finland, customers can try on apparel in “fitting room” parcel lockers equipped with digital kiosks. In addition, can the National Library Board consider allowing its books to be sent and returned via this locker network so that disadvantaged children can also have easy access to books?

Notwithstanding the above concerns, I support the Bill.

5.12 pm

Mr Darryl David (Ang Mo Kio): Mr Deputy Speaker, Sir, as Singaporeans become increasingly reliant on digital communications enabled by the Internet and various mobile messaging apps, the mail profile in Singapore has correspondingly changed substantially.

In the last decade, the mail volume of letters has declined by almost 30%. At the same time, the volume of non-letters, such as small packages and parcels, has increased – largely driven by the proliferation of online shopping platforms and changing consumption patterns. Although there is a certain nostalgia associated with receiving handwritten Christmas or Chinese New Year cards, we are now more likely to receive festive greeting GIFs on our mobile phones than physical greeting cards in our mailboxes. That is the reality of life.

In the era of Internet-enabled communications and given the ubiquity of online shopping, our postal services need to progress with time. A new framework needs to be set up to enable our postal service provider to meet changing patterns of communications and to close the last-mile delivery gap for small packages and parcels for consumers.

I am thus heartened to know that the amendments to the Postal Services Act have made provisions for IMDA to deploy a standardised national network of parcel lockers via a wholly-owned subsidiary or through an appointed vendor.

Mr Deputy Speaker, Sir, I would imagine that parcel locker services are presently, at best, scattered across Singapore and are operated by different operators with differing operational standards and charges. This fragmentation would make it challenging for merchants to adopt a standardised approach to last-mile delivery and for consumers to have a reliable method to receive their parcels when they shop from different online merchants that might perhaps use different locker platforms, depending on their tie-ups and partnerships with those providers and vendors.

Thus, I believe that market consolidation in the parcel locker service will help to minimise current market disamenities, such as differing operational standards, non-systematic deployment of lockers and deployment of competing lockers in already congested public spaces.

That being said, we ought to be mindful about potential unintended consequences in IMDA’s implementation of such a nationwide service.

First, is there a possibility that a single player will end up dominating the market and, thus, the market is not subject to competitive market forces? In short, how can we ensure that the service will be affordable for consumers and that this single vendor – should there end up being a single vendor – will also continue to innovate and introduce new services when it is not subjected to competition from other vendors?

Ensuring long-term affordability of such a locker service is important because such a service is an effective alternative solution to door-to-door delivery. We have already heard from some of our colleagues about the challenges of waiting at home to receive some of their parcels and their deliveries. At the present moment, door-to-door delivery requires some degree of coordination also between merchants and consumers to ensure that someone is at home. This results in opportunity cost for consumers in terms of time lost as they must remain at home when their time could have been better spent on other activities.

Secondly, if the aim is to appoint a single vendor, then would this end up perhaps favouring large industry players that have the financial muscle and resources to tender and implement the project on a national level? Could this lead effectively to the demise of smaller players in the industry and perhaps even affecting door-to-door courier services adversely when demand for such services decline? Would IMDA thus consider working with some of the smaller industry players that might not necessarily run the nationwide network but is still able to contribute to its running in meaningful ways?

Thirdly, since the early 2000s, the Government has tried to minimise the installation of dustbins, for example, in crowded confined spaces, such as MRT stations or bus interchanges, as these receptacles could be used to hide improvised explosive devices (IEDs), which could lead to mass casualties – I am surfacing a point that has been repeated quite a few times already by my other parliamentary colleagues. So, the question is: how would IMDA ensure that the locker service will not be misused by nefarious individuals to hide hazardous biomaterials or IEDs that could cause mass casualties or widespread panic during an incident? How would the authorities ensure the safety and security of such a locker system?

Mr Deputy Speaker, Sir, digitalisation has a pervasive impact on many aspects of our lives and has changed the way we communicate with each other and how we consume goods and services. My clarifications notwithstanding, I am heartened that the Government has introduced this Postal Services (Amendment) Bill to reflect the consumer landscape of today and conclude my speech in firm support of this Bill.

Mr Deputy Speaker: Mr Yip Hon Weng.

5.18 pm

Mr Yip Hon Weng (Yio Chu Kang): Mr Deputy Speaker, Sir, this Bill is timely, with the growing popularity of e-commerce. It strengthens our last-mile parcel delivery infrastructure.

Most parcels today are delivered to the doorstep. It is convenient, but it comes with its own set of challenges. Delivery workers are always rushing to meet the deadlines for deliveries. This can compromise their work quality and safety when rushing from one point to another and parcels are left at the door, with contactless deliveries being encouraged. This opens up risks of theft. As such, having a better self-collection strategy in place is useful. This is particularly so in the current climate when social distancing is necessary and where there is an increased reliance on delivery services.

For this initiative to work, the Government needs to ensure the sufficiency of the lockers, at the local level. We also need to work out the processes to determine if a particular item should go into a locker, mailbox or direct to door. I will touch on two groups of people who are likely to be more affected by the Bill.

First, Mr Deputy Speaker, Sir, we have to cater to homebound residents. I have many of such residents in Yio Chu Kang who may have difficulties leaving their homes to collect their deliveries. These include seniors and, especially those with mobility problems. It also includes care-givers looking after babies and family members with special needs.

One senior in my constituency, Mdm Lim, is homebound due to severe arthritis. Living alone, she does not leave the house. She relies on VWOs for meal deliveries under the Meals-on-Wheels programme. She seldom checks her letterbox given her immobility. If the parcel station is not under her block, she will have great difficulty retrieving her parcels. We need to make sure that the system caters for such individuals as Mdm Lim.

During the circuit breaker, when home visitations were not allowed, many of my residents relied on e-commerce. This is to help their elderly family members to purchase necessities. Seniors could simply wait at home for their delivery to show up. In fact, some seniors in my constituency shared with me that they are learning to shop online. They enjoyed the convenience of door-step delivery so much. This is also a great opportunity to get seniors more comfortable with the use of digital technology.

I am concerned that as parcel lockers become more widely available, businesses may find that it is more cost-saving and cease to offer door-step delivery. Some could continue to offer it, but at a much higher cost. Therefore, this may come across as working against the segment of the population that, in fact, stands to benefit most from the convenience of e-commerce. As such, businesses, particularly those offering essential goods and services, should continue to offer door-step delivery as an option and, hopefully, not at an unreasonable premium. Savings on labour costs should be passed on to consumers. Can the Government share how much can logistics service providers expect to save, if they utilise this network?

As parcel lockers are typically accessed digitally, I presume this also applies to the Nationwide Parcel Locker Network. With the success of the trial in December 2018, will there be any changes to the system by which users retrieve their parcels? Are there plans to launch a public awareness campaign as the network progressively expands? How will the Government ensure that seniors and the less tech-savvy have access to assistance? Will there be a helpline in case a resident is unable to retrieve their parcel?

Mr Deputy Speaker, Sir, my second and last point is about delivery workers. Member Patrick Tay has also spoken on this. Delivery is often cited as a job that is at risk of being automated. It will not come as a surprise that some delivery workers will find themselves displaced. Can the Government share how many delivery jobs will be affected as a result of the locker initiative?

Many delivery workers may be doing deliveries to supplement their income because their main job does not pay well enough to support their family. Some are in-between jobs, trying to get by as they find more stable employment. Some are care-givers who appreciate the freedom to accept delivery jobs when they can, as micro-jobs. How can the transition be made smoother for them? Does this new infrastructure project offer them opportunities to upskill and move up to a bigger jobscope within the logistics industry?

In conclusion, Mr Deputy Speaker, Sir, I am glad that the Government is taking the lead with this network of public parcel lockers. When logistics service providers have access to well-planned shared infrastructure with the right processes, they provide a more efficient last mile delivery service for Singapore. But we must always remember those homebound residents, especially seniors, who have difficulty accessing these lockers. We must also remember the challenges faced by delivery workers as a result of this initiative. I support the Bill.

Mr Deputy Speaker: Mr Sharael Taha.

5.23 pm

Mr Sharael Taha (Pasir Ris-Punggol): Mr Deputy Speaker, Sir, over the past few years, we have experienced the rapid growth of online shopping. This increase, as well as advances in technology, has also led to the development and growth of last mile delivery providers and participants.

As the e-commerce sector grows and online purchases become more prevalent, there is a need to look into a critical gap in the industry for the provision of parcel lockers. Currently, we have multiple players in a fragmented market, with others intending to join in to provide this particular last mile delivery service. Current parcel locker providers are extremely differentiated and unstandardised. They vary in terms of business, operations and subscription models, customer interface and even locker size. As a result, customers and businesses who use parcel lockers face multiple challenges trying to navigate through the variety of particular last mile delivery services.

With the provision of a nationwide parcel locker network via Pick Network Pte Ltd, we are able to provide standards and guidelines in order to protect customers and businesses. As mentioned by a few Members – Ms Joan Pereira and Ms Ng Ling Ling – there is a need to look into issues of accessibility for seniors and the less abled, as well as physical and cybersecurity requirements, particularly since we anticipate the sector to grow even further in the coming years. In the near future, customers using such services should have ease of access, which is to say, there should be sufficient parcel locker locations, making it convenient for customers to receive and collect their parcels in a safe and timely manner.

Currently, the custody of a parcel goes from seller to last mile delivery riders before it ends up with the customer. With the new proposed network, last mile delivery riders may no longer have direct contact with sellers and, instead, deposit parcels into lockers at designated locations. Therefore, from the moment the parcel departs from the seller until it arrives safely in the hands of the customer, it is essential to protect sellers, last mile delivery riders, customers and Pick Network from wrongful claims in the event of damage to the parcel even whilst in transit.

We must especially keep in mind the delivery riders who currently deliver direct to customers. Customers receive the parcels in good condition and this protects the delivery riders from fraudulent claims. However, with the current proposal, delivery riders will deliver to parcel lockers. How can we ensure that the delivery riders are protected when the parcel is damaged between the point of him/her completing the delivery to the parcel lockers and the customers retrieving the parcels?

I have met a few delivery riders who are exceptionally cautious when delivering parcels and resort to taking pictures of the recipient receiving their parcels to ensure that he/she is safe from any claims of damages to the parcels as such fraudulent claims may pose a significant financial loss to the delivery riders. Assuming delivery riders earn less than $5 dollars per successful delivery, if a fraudulent claim of a damaged parcel worth $100 is made on him, it will mean he loses his entire income for a day or two. Thus, we must ensure a robust and reliable system of parcel delivery, with proper recourse, should parcels be damaged or lost.

Notwithstanding the need for a robust and reliable system to safeguard all the stakeholders involved, through the provision of such lockers, the common practice of delivery staff taking pictures of customers receiving parcels or even taking pictures of customers' homes upon delivery of parcel to avoid being unfairly penalised for parcel damage or as proof of delivery, will no longer be necessary. This would be of great benefit in terms of protecting the customers' privacy, too.

Another consideration that we should take note of is that, in the current market, each service provider operates independently, providing their own physical lockers which vary in terms of size and accessibility. They also often service only their own propriety platform, for example, Ninja Van lockers. If two or more competing service providers are at the same location, such as with Ninja Van and Bluport, it may result in under-utilisation of lockers and inefficient use of space. Provision of a nationwide parcel locker network and allowing access to these assets to last mile delivery operators would help promote more effective use of valuable space. This is in line with the current trend of co-sharing assets to promote its efficient utilisation, such as that seen on platforms like AirBnB, Grab and MoBike.

Additionally, in locations that experience a high volume of parcel delivery, we can also consider piloting the use of Automated Storage Retrieval Systems (ASRS) that are more volumetrically efficient at storage and has a more efficient physical footprint. With economies of scale, ASRS may also enable the use of technology to capture the condition of parcels at the point of delivery to ensure that there are no wrongful claims and disagreements between buyer, seller, third party last mile delivery providers and Pick Network.

Current businesses and customers face a 7% failed delivery rate at doorstep. Access to network of lockers will enable last mile delivery providers to increase their successful delivery rate. Hence, delivery companies can do more for the same amount of resource. There is the potential for less failed delivery and, hence, less wastage on travel times, leading to savings in fuel and operating costs. Consequently, this will also be beneficial for businesses and deliverymen who may only be paid upon successful delivery.

Parcel lockers also help improve individual productivity. Customers are better off as they no longer have to remain at home in anticipation of a delivery. We can also consider an accompanying messaging app to inform recipients that their parcel has been safely delivered at the respective collection points so that they can be retrieved. The faster the turnaround time for these lockers, the higher the capacity for the network. With this in mind, will there be a time-bound constraint for the use of these lockers? Will customers be charged accordingly? Are there any other costs incurred by businesses and customers using this facility?

Beyond costs, there are other considerations to these parcel lockers. Firstly, who will have access to these parcel lockers? Will it be limited to only some last mile service providers? Will small businesses or homebased businesses that do their own delivery for costs reasons have equal access to these facilities as it can potentially help with their operations and costs? How viable is it for us to extend the use of such facilities to them?

Can we also consider extending this service to parcel pick-ups and parcel returns, too? This is an additional service that is provided by current parcel locker players and I think we should provide such a service, too.

A final consideration would be, with the increased use of packaging, which will inevitably increase with the growth in ecommerce, how do we use these platforms to promote our Green Plan recycling effort? Can we have reminder posters at parcel lockers, or else, incentivise the proper disposal and recycling of packaging? Mr Deputy Speaker, Sir, in Malay, please.

(In Malay): [Please refer to Vernacular Speech.] Over the past few years, we have experienced the rapid growth of online shopping. This increase, as well as advances in technology, has also led to the development and growth of last mile delivery participants.

As the e-commerce sector grows and online purchases become more prevalent, there is a need to look into a critical gap in the last-mile delivery industry. Currently, we have multiple players in a fragmented market, with others intending to join in to provide the service.

With the provision of a nationwide parcel locker network, we are able to provide certain standards and guidelines in order to protect customers and businesses.

With the establishment of a nationwide parcel locker network, it is also important that we keep in mind how we can protect the delivery riders. Previously, when the delivery rider delivers directly to the customer, the customer receives the parcels in good condition and this also protects the delivery riders from fraudulent claims. However, with the current proposal, the delivery riders will place the parcel in designated lockers. How can we ensure the delivery riders are protected when the parcel is damaged between the time when the parcel is placed in the locker to the time when the customer retrieves the parcel?

For delivery riders earning less than $5 per successful delivery, fraudulent claims can affect their income. Fraudulent claims may cause delivery riders to lose their entire income for a few days. Thus, we must ensure a robust system of parcel delivery and a claims process that is fair to all parties.

Notwithstanding, with the provision of a nationwide parcel locker network, we can promote a more effective use of space. It also prevents parcel locker providers from allocating their lockers to specific platforms only. This can also increase the number of successful deliveries.

Finally, it also represents a responsive adaptation by our postal service to remain relevant in light of the growth of e-commerce and the decline of mail volume as a result of increased digitalisation.

(In English): In conclusion, Mr Deputy Speaker, Sir, the deployment of a nationwide network of parcel lockers in specified premises has many advantages and benefits to businesses, customers and last mile delivery providers. It is also a responsive adaptation of our postal service in light of the growth of e-commerce and the decline of mail volume as a result of increased digitalisation. The amendments to the Postal Service Act will ensure the continued relevance of our postal service to future generations of Singaporeans. With that Mr Deputy Speaker, Sir, notwithstanding the clarifications above, I support the Bill.

Mr Deputy Speaker: Mr Gan Thiam Poh.

5.33 pm

Mr Gan Thiam Poh (Ang Mo Kio): Mr Deputy Speaker, Sir, I support the amendments to the Postal Services Act which will lead to the installation of a network of parcel lockers islandwide. While such lockers, also known as automated parcel machines, or APMs, may not be able to replace the role of couriers who compete by delivering right to the doorstep, they offer a convenient service to those who prefer to pick up their parcels at time slots convenient to them. With this option, they do not need to ensure that they are waiting at their residences or offices in order to receive their parcels. In addition, this arrangement will certainly help provide better service with increased productivity and efficiency.

I would like to suggest that IMDA consider developing a nationwide network of pick-up and drop-off points, in short, PUDO, in collaboration with neighbourhood shops, convenience stores, retailers, petrol stations, Residents' Committee and Neighbourhood Committee and clubhouses to supplement the APM network. PUDOs, which require no installation, can be set up more flexibly and can help to cope with increased delivery volumes during peak hours when the demand for APMs is high and they get filled up quickly, such as during the Christmas season.

I also hope that the Ministry will work with condominiums and private estates to enhance the out of home delivery options for them, through a combination of APM and PUDO locations. Deputy Speaker, in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] Parcel lockers will alleviate the problem of manpower shortage in this sector. I would like to ask how many postmen we have and how many are currently employed by private logistic and courier companies? What are the plans to train and upskill this group of essential workers, and how are we supporting them by tapping on technology, such as robotic delivery assistants?

(In English): The Bill is comprehensive and ride on other existing legislation to counter mischief and security threats. Would the Ministry share with the House how many such cases have been detected and deterred in the past?

What has the Ministry done and invested in to ensure that our system is robust against security threats? Will the Government invest more in such security measures and software development? Finally, had there been many unclaimed parcels to date, especially parcels which are the result of mischief? With that, I conclude with my support for the Bill.

Mr Deputy Speaker: Mr Louis Ng.

5.37 pm

Mr Louis Ng Kok Kwang (Nee Soon): Sir, this Bill ensures that our postal sector remains responsive to trends in the market. On one hand, with many transactions now going paperless, the volume of letters sent through the post is decreasing. As one example of this trend, just in December last year, Ikea announced that it will be discontinuing its iconic Ikea paper catalogue after 70 years.

On the other hand, parcel deliveries has grown with the booming e-commerce sector. A study done in 2020 noted that Singapore's business-to-consumer e-commerce market has been growing at a double-digit rate since 2017. Already, the growth of e-commerce has strained our postal system which was mainly designed for letters.

In 2019, SingPost was hit with a record $400,000 fine for failing to meet delivery standards. SingPost attributed the lapses largely to the rise in parcel deliveries.

The amendments to the Postal Services Act are timely for responding to consumer trends. The new public parcel locker network will also help to ease the load on our postmen and postwomen who work tirelessly to ensure that the postal system runs smoothly. Sir, I have three points to raise on this Bill.

First, the Bill will introduce a nationwide network of public parcel lockers at HDB estates, public transport hubs and community spaces. Ahead of this Bill, IMDA announced that it will roll out 1,000 parcel locker stations. The public parcel locker network is intended to complement commercial parcel locker network in private residential and commercial spaces. However, the scope of the public parcel locker network is extensive. This locks the private parcel locker networks out of a significant portion of the market. As a result, this may stifle innovation by the private players.

Private parcel locker operators have been in the market for some period of time. The industry is also fairly competitive with many options available to consumers. With the introduction of the public parcel locker network, how will the Government continue to ensure that both public and private parcel locker network players remains competitive and continues to innovate?

Second, the new section 23R will allow the Postal authority to open and search a public parcel locker. It will also allow the Postal authority to detain and open any parcel in a public parcel locker. This, is to mitigate risks to public safety and is consistent with the approach for postal articles. MCI and IMDA have also stated that they will require the operator of the public parcel locker network to put in place security measures including video surveillance and presence sensors in the locker compartments. I understand this will also include cybersecurity protection measures. Additionally, there is also collaboration with MHA and SCDF to ensure that the locker design and parcel handling meets safety and security requirements.

However, the powers for the Postal authority in section 23R and the security measures announced for the public parcel locker network do not necessarily apply to the private parcel locker networks. The security risks that threaten the public parcel locker networks similarly apply to private ones. Can the Minister clarify what measures will be in place, aside from existing Government powers under other laws, to address security risks for private parcel locker networks?

Third, the proposed amendments will implement Regulated Wholesale Access which means that SingPost will be required to deliver small packages for other delivery service providers into letter boxes. The intention is to level the playing field for delivery service providers in the last mile delivery market. However, many delivery service providers currently provide parcel tracking services, where the parcels can be tracked throughout the journey.

With Regulated Wholesale Access, the parcels will be handed over to SingPost for the last mile of delivery into the recipients' letter boxes. Without compatible tracking systems between the delivery service providers and SingPost, it may not be possible to track parcels throughout their delivery journey. This was a concern raised by Ninja Van in response to the public consultation for the Bill. This would represent a step backwards in terms of the quality of delivery services offered to consumers. Can the Minister clarify whether the Ministry or IMDA has looked into how the trackability of parcels can be maintained throughout the delivery process? This may be particularly important given that there is an additional point of handover of the parcels from the delivery service providers to SingPost, which increases the risks of mistakes.

Further, given that there are technologies available on the market to track the delivery of postal articles, is the Ministry or IMDA looking into how tracked deliveries can be made the default in the Postal system? Right now, consumers have to pay premiums and go through additional processes for the tracked delivery of letters or parcels. If the technology is readily available, why not implement it across the board. The volume of postal articles that go through the postal system will help in spreading out the costs of implementation. Sir, notwithstanding these clarifications, I stand in support of the Bill.

Mr Deputy Speaker: Senior Minister of State, Sim Ann.

5.42 pm

Ms Sim Ann: Thank you, Mr Deputy Speaker. I thank Members for their support for this Bill, and for their questions on important issues that this Bill seeks to address.

Members' responses and questions fall into two broad themes, namely first, what we are doing to ensure citizens and consumers can fully benefit from the deployment of the nationwide parcel locker network or the "Network"; and two, what we are doing to enable businesses to reap productivity gains from the Network, while safeguarding it against cybersecurity threats.

Let me begin with the first theme, on providing a convenient, secure and inclusive Network that can be used by residents of all ages.

In my opening speech, I spoke about how the Network is an efficient solution that provides greater convenience and more options for parcel deliveries beyond doorstep delivery.

We note Mr Patrick Tay and Mr Gerald Giam's query about whether there are plans to deploy Pick's lockers at private estates and condominiums. Parcel lockers can help achieve efficiencies in residential estates with sufficient density, and which are currently under-served. This is why Pick's rollout plan is focused on HDB estates. Some private condominiums are already being served by a commercial parcel locker operator, who has agreed to join the Network. Pick will encourage its partners to expand their deployment wherever feasible, so that more locations, including private condominiums, can be served. Private estate dwellers, including those who live in less dense estates, which might not be ideal for parcel locker deployment can also benefit from Pick's lockers deployed near them, especially those at public transport nodes and Community Centres or Community Clubs.

There was also a question raised by Mr Gerald Giam about the siting of the parcel lockers. Pick will focus on rolling out the Network in areas that will be convenient for the public. In looking for ideal locations for these parcel lockers, Pick has taken on feedback from the ground, including all town councils in determining suitable locker sites in HDB estates. It is also working closely with MOT and LTA to review data such as transport ridership, while taking into account operational, safety and security requirements, to identify suitable locker sites at public transport nodes.

Mr Darryl David has also raised a concern about the pricing for parcel locker use. I should highlight here that the charges for the parcel locker will be charged to the DSPs and the consumer may or may not actually see what these charges are because usually the consumer will interface with the e-commerce marketplace. And as to how this is then translated into the consumer price, we leave this to the workings of the e-commerce marketplace, the sellers as well as the DSPs.

However, I should highlight that from Pick's perspective, in order for us to achieve the kind of efficiencies that we envision for the entire urban logistics sector, it stands to reason that the prices offered to the DSPs has to be affordable. Because if it is not affordable, there is no way to make a good business case ultimately to the consumers and we might still default to doorstep delivery, and that is what we are trying to change here. Pick is very conscious of the importance of making the numbers work and to offer a vey attractive business case so that the DSPs will find it worth their while to use these parcel lockers.

Mr Yip Hon Weng has expressed a concern that widespread use of parcel lockers might cause businesses to cease offering doorstep delivery. In fact, it is precisely because doorstep delivery is manpower intensive and not sustainable as a long-term default that we believe businesses are likelier to continue to offer doorstep delivery at a reasonable rate to consumers if they are able to achieve productivity gains elsewhere, such as the kind of productivity gains we anticipate from the deployment of the Network.

I should also add that we are heartened by the residents engagement surveys that Pick has been undertaking thus far, and in the surveys, residents have indicated other considerations apart from the price that they will be seeing on the e-commerce marketplaces for why they would use Pick's lockers. Ninety-six percent of residents indicated that they would use Pick's lockers due to reasons such as the convenience of 24/7 self-collection and the confidence of being able to access their deliveries safely rather than having their parcels being left at their doorstep unattended. With this kind of response from residents, we feel that we are on the right track.

Mr Louis Ng asked whether IMDA is looking into how the trackability of parcels can be maintained throughout the delivery process given our amendments to implement regulated wholesale access of small packets and parcels into letterboxes. Please allow me to clarify that today, other DSPs are already able to hand over their packets and parcels to SingPost for delivery into letterboxes on commercially negotiated terms on a tracked basis. Hence, consumers' ability to track the delivery of their packets and parcels to letterboxes will not be affected by this amendment.

Some Members asked about the safeguards in place to mitigate security risks such as the placement of harmful or hazardous items in Pick's lockers and items placed in the parcel lockers being tampered with given that multiple DSPs have access to them. The Act already contains provisions upholding mail security. Similarly, we will also guard against mischief and tampering in the parcel locker setting. We are working closely with MHA and SCDF to develop security guidelines and requirements to ensure that the locker design and parcel handling workflows meet required safety and security standards.

To Mr Patrick Tay's query on how we are monitoring and enforcing the placement of prohibited items before they are delivered to Pick's lockers, he may wish to note that parcels sent from overseas are screened by the Immigration and Checkpoints Authority (ICA). For domestic parcels, Pick has worked with DSPs to ensure that they have safeguards in place to prevent the placement of prohibited items in the lockers. IMDA will be empowered to issue written notices to Pick in relation to Pick's compliance with security requirements and guidelines.

Relatedly, the new section 39J makes it an offence for a person to place prohibited items in the Network's parcel lockers. The classes of prohibited items will be expressly set up in subsidiary legislation.

In terms of deterrence measures, IMDA has required Pick to put in place security measures to mitigate risks to consumers. Mr Patrick Tay will be glad to know that each Pick locker station will include two CCTV cameras with round-the-clock video surveillance, which will aid potential investigations into any incidents of theft.

Mr Don Wee may also wish to note that locker compartments will have presence sensors to alert Pick if items appear in the lockers that are not supposed to be there, or if locker doors are not securely fastened. Mr Louis Ng may also wish to note that today, the Police has the powers to investigate the contents of lockers belonging to Pick and private sector operators if they need to. Nonetheless, we have taken into account public safety and security considerations in designing Pick's lockers. We will consider Mr Louis Ng's suggestion to explore how the security risk for private lockers can be further mitigated.

Mr Sharael Taha asked about protection for delivery riders in the event where parcels delivered are damaged or lost through no fault of theirs. We believe that in general, the introduction of Pick's lockers would reduce the volume of disputes arising from parcel damage or loss as the CCTV cameras on Pick's lockers are able to capture the delivery process.

Delivery into Pick's lockers would also provide more assurance compared to missed doorstep deliveries where some parcels are left unattended for a period of time. We will monitor the situation and if necessary, work together with DSPs to educate delivery personnel on proper delivery of items into the parcel lockers.

On Mr Patrick Tay's suggestion about providing greater recourse for e-commerce bias in the event of failed doorstep deliveries or missed deliveries, the current industry practice is for the e-commerce retailer to ensure the proper delivery of the item to the consumer through its shipping contract with a DSP. In this regard, Enterprise Singapore and the Singapore Standards Council have launched the Technical Reference 76 (TR 76), which outlines e-commerce retailers' responsibility among others on the handling of lost or damaged items during delivery to protect consumers' interests. My Ministry and IMDA are cautious about introducing a formal regulatory framework for parcel delivery services at this point as we do not wish to raise compliance costs unnecessarily, which could also translate into an increase in prices faced by consumers.

Given the existing measures, we will work with the Consumers Association of Singapore (CASE) on how to promote the adoption of these best practices among e-commerce businesses and to improve consumer awareness of their rights in e-commerce transactions.

As we transform our infrastructure to support greater digitalisation, it is important to ensure our efforts are inclusive. To this end, Mr Sharael Taha, Mr Don Wee and Mr Yip Hon Weng may wish to note that access to Pick's lockers will be a simple affair even for those without a smartphone. Similar to the IMDA led Locker Alliance pilot, users will be notified via SMS or email on the arrival of their parcel and will be able to access the lockers via a one-time PIN issued by Pick. A helpline will also be available for residents who face trouble retrieving their parcels.

Mr Sharael Taha may wish to note that consumers have up to three days to retrieve their parcels from the parcel lockers, after which they will have to make arrangements with the DSPs to pick up their parcels. This was deemed as a reasonable timeline based on the findings from the Locker Alliance pilot.

Ms Joan Pereira, Mr Patrick Tay and Mr Yip Hon Weng asked about what we are doing to support residents, especially seniors, in the use of the Network. We believe that seniors who are able to make purchases online are also very likely to be digitally ready to use the Network. Nonetheless, we will have digital literacy measures in place to support residents in the use of the Network. For example, we will add a segment on how to use Pick in IMDA's Seniors Go Digital programme. At the same time, we will widen the reach of the Seniors Go Digital programme which has trained over 69,000 seniors in digital skills to date to give even more seniors the confidence to embrace e-commerce. We also thank Ms Ng Ling Ling on her useful suggestions regarding disability friendly features and access to Pick's lockers. We are working on these options, including making the selection of wheelchair friendly lockers an option for consumers when they check out for their e-commerce purchases.

Moreover, to broaden our outreach to residents of all ages, we also intend to leverage IMDA's events aimed at raising Singaporeans' digital literacy such as the SG Digital Wonderland when the COVID-19 situation improves.

In terms of use cases for Pick's lockers, I am also very glad to hear the strong interest from Members as well as their various suggestions. Let me share that Pick and the National Library board are exploring the possibility of allowing residents to borrow and return library books through Pick's lockers. Ms Ng Ling Ling, Mr Don Wee and Mr Gerald Giam had also made similar suggestions on temperature-controlled locker units to facilitate delivery of medication, groceries and other kinds of temperature-sensitive goods. These are useful suggestions, especially during this COVID-19 pandemic when doorstep delivery for supermarket purchases and medicine becomes a practical option for many households.

While there are some examples of refrigerated or temperature-controlled locker units overseas, these are mostly deployed on a trial basis or on a very small and localised scale. For instance, many new condominium units in Tokyo have parcel lockers, but only a handful of buildings are installed with refrigerated lockers. Pick is studying the feasibility of including such units for some of its lockers. For now, Pick is engaging retail chains on the possibility of using its parcel lockers to deliver non temperature-sensitive products to residents.

Mr Don Wee and Mr Gerald Giam may also be pleased to note that Pick is in talks with industry players for its parcel lockers to be used as collection points for recyclable e-waste as part of our effort to reduce Singapore's carbon footprint. And as for the returns of parcels, yes, this is already catered for, and in fact this is the reason why we made the amendment in the Bill.

While Pick's lockers will not facilitate consumer to consumer sales and exchanges due to security reasons, Pick will continue to explore other innovative and sustainable use for its parcel lockers. Mr Gan Thiam Poh had made a suggestion with regard to pick up and drop off points, and asked if it is possible for Pick to also enter into a network of Pick Up, Drop Off Points (PUDOs). Right now, PUDOs are operated mostly by private sector players and Pick has no intention of entering this sector.

I should also take this opportunity to mention that although there may be some PUDOs that operate on a 24/7 basis, many do not, and in fact, this was also one of the reasons why in our early studies of urban logistics that it was decided that we consider building up a network of parcel lockers that consumers can access 24/7 because this would be more convenient compared to some pick-up and drop-off points which may have limited operation hours.

Amidst the COVID-19 pandemic, we also agree with Mr Don Wee and Mr Gerald Giam that ensuring the cleanliness of Pick's parcel lockers is crucial. While Pick is responsible for the maintenance of the parcel lockers and will ensure that the lockers are cleaned regularly, we urge consumers to maintain personal hygiene when using the parcel lockers as they would with any other piece of public infrastructure.

Let me now address the second theme which pertains to enhancing business productivity while safeguarding the Network against cybersecurity threats. Mr Gerald Giam and Mr Darryl David have spoken about Pick's role in the urban logistics eco-system. Against the backdrop of a flourishing last mile delivery sector, the current private sector driven market for parcel lockers is largely fragmented with competing players deploying their proprietary networks, which are accessible only by selected DSPs. This has given rise to deep inefficiencies for locker operators. The lockers are duplicated at high-traffic commercial locations, and e-commerce marketplaces and DSPs are unable to access all lockers which may be available.

Mr Yip Hon Weng asked about the productivity savings that DSPs can expect to enjoy from utilising this network once the inefficiencies that I have mentioned previously have been addressed. Based on the Locker Alliance pilot which started in 2018, participating DSPs reported a four-fold increase in delivery efficiency with just 70 parcel locker stations, established in two HDB towns and eight MRT stations.

With a nationwide Network of 1,000 parcel lockers stations, the potential productivity gains for the industry will be significant. However, these gains can be realised only if two key factors are met. First, the Network will need to be deployed expeditiously so that scale and network effects can be realised. Second, the Network should be deployed by a neutral operator to ensure open and non-discriminatory access for the industry. In fact, this point was expressed by industry stakeholders during consultation.

We listened to the voices from the industry and we very seriously considered having a neutral operator that industry stakeholders will have confidence in, in providing that open access to everyone. We believe that these twin objectives that I have outlined would be best served by a Network operated by the Government – in this case, it would be IMDA – and to give effect to this intention, IMDA formed a subsidiary, Pick.

Having Pick, an IMDA subsidiary, operate the Network will allow IMDA to directly manage locker placements and deployment timelines while ensuring prices are reasonable and affordable. As a subsidiary, Pick will have the flexibility to undertake commercial decisions and nimbly respond to market dynamics, while balancing the interests of the Network as a public infrastructure. Second, this would provide the assurance that DSPs and locker operators are looking for, which is the neutrality of the Network, while factoring in both consumers' and the industry's needs in the administration of locker operations.

We would like to thank Members for their support for greater innovation and their various suggestions to this end. Mr Sharael Taha suggested piloting the usage of automated storage retrieval systems. In response, we could review the commercial viability of incorporating such technology into the Network's parcel handling process after the Network has been established and its operations stabilised.

Ms Ng Ling Ling, Mr Louis Ng and Mr Gerald Giam asked about whether the amendments which accord exclusive privileges to Pick will entrench its market dominance and stifle the industry. Let me clarify that our intention is not to put Pick in a favoured position. Pick's exclusive privileges are confined to the provision of parcel lockers at specified premises only. In this regard, the Network, which would be available for use by all e-commerce marketplaces and DSPs will serve to complement, but not compete with existing locker offerings from the industry, which are accessible only by selected operators. As Pick will not be involved in parcel delivery, it will also not compete with DSPs in this segment.

As I mentioned in my opening speech, the Network is linked to an interoperability platform which will connect DSPs and e-commerce marketplaces with the Network's parcel lockers. While the digital platform will enhance the user experience for the industry and consumers, Ms Ng Ling Ling and Ms Joan Pereira raised important points about the need to safeguard the Network against cybersecurity threats. This issue was also raised by the industry during our public consultation. Pick will have to comply with requirements set out by IMDA to ensure the resilience and security of the Network before, during and after the deployment of the Network. For example, the software component will be subject to vulnerability testing by independent cybersecurity experts, before the parcel lockers are available for use.

During and after deployment, IMDA may set out detailed obligations by issuing codes of practice and/or directions in relation to the installation and operation of the Network. This may include setting out cybersecurity requirements pertaining to the Network, for Pick's compliance. We will carefully review Ms Ng's suggestions for additional measures where required.

Ms Janet Ang and Mr Darryl David have also spoken about how businesses could be better supported to use the Network.

As I mentioned in the opening speech, the Network will provide the industry with public e-commerce infrastructure that will give more options for last mile delivery. The strong support from and partnership between Pick and various industries stakeholders are crucial for the Network's success. To this end, Pick has undertaken various initiatives to onboard DSPs and e-commerce marketplaces. Ms Janet Ang will be glad to note that that these include supporting DSPs and e-commerce marketplaces to integrate their systems with Pick's one-stop access to all lockers in the Network, joint promotions with e-commerce marketplaces to encourage consumer adoption and featuring partners in Pick's marketing campaigns.

Mr Don Wee's suggestion of allowing small and medium-sized retailers to block-book a limited number of lockers to serve as retailers' "shopfronts" and advertisement space is an interesting one. Pick will consider carefully how such a concept could be implemented.

Mr Sharael Taha may also note that Pick's Network is open to all DSPs. Small and home-based businesses keen to use Pick's lockers can work with any DSP registered with Pick to drop off their parcels at Pick's lockers for delivery to their customers.

Mr Gerald Giam had also raised a scenario in which perhaps the locker space would be taken up by a specific player and this is something which Pick does intend to monitor in terms of the usage volume of is lockers in different locations. Where there are locations that have been shown to have very high demand, then pick would have to make operational decisions about whether to situate more lockers nearby or to expand the existing locker stations.

Pick is also exploring with its industry partners on ways to address their cross-border fulfilment challenges, in a bid to help them tap on a larger e-commerce market beyond Singapore. And I believe this also addresses a point that Ms Janet Ang was alluding to.

As we work closely with the industry to use the Network for greater productivity gains, we also agree with Mr Patrick Tay and Mr Yip Hon Weng that it is important to work with employers to ensure that our postal and DSP delivery personnel are well-trained and well-equipped to operate in this new environment. Projected e-commerce growth will continue to intensify the demands for last mile delivery services, and by extension, delivery workers. So, the question is not so much whether delivery workers will be displaced, but how we can help them enjoy better prospects. As Members would know from many previous discussions in this House, increased productivity is an important precondition for upgrading jobs and uplifting workers.

While the Network strives to fulfil its role in achieving productivity for all DSPs that it partners, we expect DSPs to also play an active part in training and equipping their workers, drawing on the comprehensive upskilling measures administered by the MOM family of agencies. Through this partnership, we hope that the Network will help to bring about better jobs and better prospects for delivery workers.

Mr Deputy Speaker, I believe I have substantively addressed the issues that Members have raised.

In conclusion since the PSA was first enacted 22 years ago, the landscape has changed significantly and we have also taken corresponding strides in transforming our postal sector. Taken together, the amendments in this Bill to effect nationwide deployment of lockers in tandem with the changes pertaining to letterbox infrastructure and regulation of postal services, will ready us for the digital and technological shifts in our postal landscape. They will enable us to embrace the global search in e-commerce while putting us in good stead to cope with manpower constraints in the sector with a more skilled and better-equipped postal workforce ready to face the challenges of the digital age. These will ultimately benefit consumers and the industry alike. Mr. Deputy speaker, Sir, I beg to move.

Mr Deputy Speaker: Mr Gerald Giam, you have a clarification?

I propose to take just about 10 minutes for clarifications so that other Members will have the opportunity. So, we can keep them short. And then, we can move on to the Motions.

6.09 pm

Mr Gerald Giam Yean Song: Thank you, Mr Deputy Speaker. I thank the Semior Minister of State for the comprehensive answers to my questions. I just have one clarification. In the long term, will Pick be profit-oriented, or will it be subsidised by IMDA? Or will it be eventually spun off like SingPost was?

Ms Sim Ann: Mr Deputy Speaker, in answer to Mr Gerald Giam's question, at this point in time, our focus is in establishing the operations of Pick and having their processes stabilised. The lockers in fact will be going live, we hope, later this month. So, I think we are in very early stages yet.

However, what I can share is that we do intend for it to become a well-functioning part of the eco-system. We do believe that there are certain gaps in the market that do need to be plugged so that the previous inefficiencies that we have described, will then be eliminated but we do not intend for this to be done at the expense of long-term subsidies. So, the Pick team is working very hard to ensure that they are able to deploy the parcel lockers at the right spots. And that in terms of the adoption by the e-commerce marketplaces and the DSPs, that it is sufficient in order to create the kind of economies of scale to make this project a success.

Mr Deputy Speaker: Any further clarifications? If not, I shall put the question.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. – [Ms Sim Ann].

Bill considered in Committee; reported without amendment; read a Third time and passed.