KUALA LUMPUR, Sept 25 — Pos Malaysia Berhad said today it is working on tenable options ahead of the looming possibility of the United States exiting the 192-member Universal Postal Union (UPU).

In a statement dubbing the situation a “Pexit” due to its similarity to the UK’s “Brexit” from the European Union, Pos Malaysia said that it is likely that the US’ proposed new option would be voted through at the ongoing UPU’s Extraordinary Congress in Geneva, Switzerland.

“Even though the US has not singled out China, most products from e-commerce do come from China, either direct or through third-party countries in Asia. Countries like Malaysia are caught in the crossfire of this escalated trade war.

“Pos Malaysia is currently working closely with the government and all relevant bodies on ways that would brace the public and businesses from the huge impact of the potential high rates and the instability of the postal system around the world,” it said.


The nation’s postal service provider said that a deregulation consideration is a “possible option” to cushion the potential soaring of postal and parcel rates globally, adding that despite any revision rates which come into agreement, it would still prioritise affordability of postal services for its users.

Pos Malaysia said that three proposals have been tabled at the Geneva meeting, and all options would see a high cost impact to postal operators across the globe.

The Malaysian Communications and Multimedia Commission (MCMC) yesterday said it would support any revision in the remuneration rates for inbound letters and small packages from overseas.


However, like Pos Malaysia, it stressed that the new rates, should they come into agreement, must be affordable for users of postal services.

The UPU remuneration system for letters and small packets is also known as the terminal dues system.

The system essentially ensures that post operators are compensated for the cost of handling, transporting and delivering items across borders.

This multilateral agreement is what facilitates the movement of postal items across nations, ensuring that anyone, anywhere who is in the UPU’s 192 country-membership, can send and receive international posts.

The US, under the leadership of its president Donald Trump, is now reportedly threatening to leave the world’s mail system, owing to disagreement on the terminal dues.