SINGAPORE – Singapore Post has proposed paying shareholders an additional dividend of 0.41 cent for each share they own, or about $9.3 million in total, from old unpaid debt that it no longer expects to settle.The payout relates to liabilities tied to SingPost’s international postal arrangements, and comes as the company’s financial position stabilises enough for it to also announce plans to revamp SingPost Centre in Paya Lebar to free up more space for new tenants.SingPost said during its results conference on May 14 that its counterparties had failed to submit their claims in a timely manner and were given advance notice that claims before Jan 1, 2019, would no longer be recognised after March 31, 2026.Under Singapore law, contractual claims generally cannot be enforced after six years if no action is taken. SingPost said it adopted a seven-year cut-off instead to allow extra time for the settlement process in international postal deliveries. The company added that it had notified counterparties to submit any outstanding claims before the deadline.As the claims had remained unsubmitted beyond the seven-year period, the liabilities were removed from SingPost’s books, and will now be paid out to shareholders if approved.The payout comes on top of a proposed final dividend of 0.06 cent per share for the financial year ended March 31, bringing total ordinary dividends for the year to 0.14 cent per share.SingPost chief financial officer Isaac Mah said the dividend payout is in line with the company’s policy to pay out 30 per cent to 50 per cent of underlying net profit annually.Mr Mah added that SingPost is now in good capital position after selling more than $1 billion worth of assets in the past year and paying off around $600 million in outstanding debt, and will now invest in revamping SingPost Centre in efforts to bring in new tenants and attract shoppers.The company has already appointed an architect to carry out the upgrades.The move is an abrupt shift in strategy from just a year ago, when SingPost had been mulling over the sale of its Paya Lebar property to free up funds for its struggling postal business.SingPost chief executive Mark Chong said SingPost Centre remains an important asset that generates stable rental income and maintains high occupancy.He added: “Plans change; situations change. What we have seen is that with the turbulence out there in the world, it is better that we be more certain on our earnings.“We are keeping SingPost Centre. It is not for sale.”Mr Chong, who was appointed as CEO on Nov 1, 2025, expects the property to benefit over the longer term from plans to develop the Paya Lebar area into a commercial hub, with possible changes to building height limits and land-use rules following the closure of Paya Lebar Air Base adding significant value to the property.Mr Chong said SingPost’s postal and small parcel sorting operations, which are currently carried out at SingPost Centre, will be moved to a larger facility in Tampines that can handle more capacity following upgrading works completed in 2025.The move will free up about 83,000 sq ft of industrial space at SingPost Centre, creating more leasing opportunities for the company, including for office tenants.Mr Chong added that CapitaLand, which currently manages SingPost Centre’s retail space, is tendering for a new contract to continue doing so.However, he declined to provide further details of the revamp, including the size of the investment, saying plans have yet to be finalised.Some of SingPost’s other post office properties could be partially leased out to generate higher returns, while other sites are being reviewed for longer-term redevelopment or alternative uses.These include post offices in MacPherson and Geylang, and warehouses and delivery bases in Jurong, Woodlands, Toh Guan, Tampines and Kallang, as well as the SingPost Airmail Transit Centre in Changi and SingPost Regional eCommerce Logistics Hub in Greenwich Drive.An example of SingPost renting out additional space at its post offices is the KPO Cafe & Bar, a two-storey bar and restaurant operating on the second level of the 1 Killiney Road post office.The company targets a 10 per cent reduction in costs by expanding its network of automated post office kiosks, where consumers can buy stamps, pay bills and drop off parcels round the clock while using artificial intelligence and autonomous vehicles to improve delivery efficiency.While some jobs may be affected, Mr Chong said the workers will be reskilled and redeployed to new roles.SingPost’s revenue fell 23.1 per cent to $376.1 million for the financial year ended March 31, mainly due to a sharp drop in its international business amid a weak global economy, as well as continued declines in letter mail volumes.With lower international shipment volumes weighing on performance, full-year operating profit plunged 68.9 per cent to $11.8 million over the same period.SingPost shares fell more than 5 per cent on May 14, closing the day at 36 cents.