The government is studying a proposal to introduce a mandatory floor price for courier services, revealed Communications Minister Datuk Fahmi Fadzil via a written reply in Parliament today. He said the idea is still being evaluated through a cost audit and a review of the industry’s pricing structure to ensure any minimum rate would support operators without placing an undue burden on consumers.
Fahmi added that MCMC has licensed 102 courier companies under the Postal Services Act 2012 as of 15 October 2025. However, 98% of all parcels are handled by just 15 major players. J&T Express and SPX Xpress remain the largest names in the sector, jointly controlling 73.5% of the domestic market. Of the total licensees, 21 are international operators while the remainder are locally held.
The Comms Minister also noted that the existing Reference Price Guidelines introduced in 2022 serve only as a benchmark. They are not mandatory and rely on self-regulation, with operators setting tariffs based on operating costs as allowed under Section 36 of the Act.
Why Is a Floor Price Being Considered?
The proposal is largely driven by concerns about aggressive price-cutting that puts smaller courier companies at risk. A floor price could help ensure operators cover essential costs while maintaining fair competition across the sector.
What Does This Mean for Consumers?
A mandatory floor price may lead to some adjustments in delivery fees, depending on how far current rates sit below the new threshold. For now, no immediate changes are expected.
(Source: The Star)
