Why the Postman is pressured to upgrade infrastructure

Rapid growth in packages.

According to OCBC, with increasing labour-related expenses and administrative expenses, operating costs of the group have been steadily increasing. 

The changing profile of mail (domestic mail expected to trend lower though number of households in Singapore trends higher) has also meant a rapid growth of packages and decline in letters, leading to more investment requirements by management in its infrastructure.

Here's more from OCBC:

The group is in the midst of transformation to diversify its businesses, having embarked on quite a number, albeit relatively small, acquisitions so far.

More recently, the group announced that it has completed its acquisition of 30% interest in Dash Logistics Company.