Postal development plan for Asia-Pacific (2009–2012)

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					Postal development plan
for Asia-Pacific
(2009–2012)




Development Cooperation Directorate




              UNIVERSAL
        UPU




              POSTAL
              UNION
            UNIVERSAL




      UPU
            POSTAL
            UNION




Supporting postal development in
the Asia-Pacific region
Postal development plan for 2009–2012




Berne 2009
                                                         3

Contents
                                                                                              Page

List of abbreviations                                                                            4

Executive summary                                                                                5

Introduction – Message from the Director General                                                10


Part 1 – Situation of the postal sector in the Asia-Pacific region                              11

1.1       Assessment of regional development plan for 2007–2008                                11
1.1.1     Improve quality of service                                                           11
1.1.2     Develop financial services                                                           15
1.1.3     Formulate and monitor implementation of reforms                                      15
1.1.4     Human resource training                                                              16
1.1.5     Introduction of cost accounting                                                      16
1.1.6     Postal market                                                                        17
1.2       General situation in the Asia-Pacific region: key facts                              17
1.2.1     Situation of postal sector                                                           18
1.2.2     Universal postal service                                                             20
1.3       Sector reform                                                                        20
1.4       Main trends and characteristics of three-dimensional postal network                  21
1.4.1     Physical network dimension (letters, parcels, EMS etc.)                              21
1.4.2     Electronic network dimension (use of IPS/IPS Light, online postal services, etc.)    29
1.4.3     Financial network dimension (postal financial services)                              31


Part 2 – Areas for development                                                                  33

2.1       Main observations and areas for improvement                                          33
2.1.1     Quality of service                                                                   33
2.1.2     Financial services                                                                   36
2.2       Priorities for 2009–2012 cycle and areas for action                                  38
2.2.1     Priority No. 1 – Improve quality of service at all levels                            39
2.2.2     Priority No. 2 – Develop financial services                                          49
2.2.3     Other specific fields                                                                50


Part 3 – Implementation of the plan                                                             52

3.1       Implementation stages                                                                52
3.2       Financing of the plan                                                                52
3.3       Communication plan                                                                   52


Conclusion                                                                                      53
                                                      4

List of abbreviations


APPU           Asian Pacific Postal Union
POC            Postal Operations Council
IRCs           International reply coupons
PTC            Postal Technology Centre
EMS            Express Mail Service
QSF            Quality of Service Fund
DMAB           Direct Mail Advisory Board
GMS            Global Monitoring System
IFS            International Financial System
IFS Light      International Financial System Light
IPS            International Postal System
IPS Light      International Postal System Light
J+x            Day of posting of a postal item + x days
IPDP           Integrated postal reform and development plan
LDCs           Least developed countries
UNDP           United Nations Development Programme
QCS            Quality Control System
WSIS           World Summit on the Information Society
NPS            Nairobi Postal Strategy
UPU            Universal Postal Union
WNS            World Association for the Development of Philately (WADP) Stamp Numbering System
                                                       5

Executive summary


I.    Introduction

1     In resolution C 6/2008 concerning development cooperation policy for the period 2009–2012, the 24th
UPU Congress decided to continue to apply the regional approach during 2009–2012 in the form of regional
development plans (RDPs), as the main tools for implementing the Nairobi Postal Strategy (NPS) in the field.

2      The regional development plan forms part of the new vision for development cooperation, adopted by
the 24th Universal Postal Congress in 2008, and the Nairobi Postal Strategy (NPS), which provides for
implementation of the global strategy at regional level. It is designed to support the tools being developed by
the International Bureau to guarantee uniform implementation of UPU activities in the field by means of a
new approach based on two defining principles:
–     Integration, i.e. the integration of all cooperation activities developed by the International Bureau in a
      common regional framework. The regional development plan also makes it possible to incorporate the
      activities of the regional actors.
–     Regionalization, an approach designed to respond optimally to each region's specific needs by
      creating synergies with regional players and strengthening and diversifying cooperative mechanisms
      in the field (Regional Coordinators, Restricted Unions, economic institutions, leading countries, etc.).

3     These indicators should make it possible to check the degree to which the aims and objectives
contained in the plan have been achieved. Similarly, it is necessary to measure the various degrees of
implementation against the actions taken, the results expected and the deadlines set.

4     The postal development plan for the Asia-Pacific region is based on the setting of concrete objectives
with measurable results. Its implementation is predicated on the commitment of stakeholders, the UPU
International Bureau, the governments and operators involved and the Asian-Pacific Postal Union (APPU).

5     The 2009–2012 postal development plan for the Asia-Pacific region contains actions aimed at
achieving two major objectives seen as priorities:
–     Improve quality of service at all levels.
–     Develop financial services.

6     The implementation of the RDPs and the concrete projects stemming from them will begin towards the
end of 2009 and continue until 2012. A progress report will, of course, be submitted to Council of
Administration meetings and to the 2010 Strategy Conference, and a final report will be prepared for
presentation at the Doha Congress.


II.   General

7     The Asia-Pacific region comprises 36 countries: three industrialized countries, 19 developing
countries and 14 countries which are classified as least developed (LDCs).
                                                     2
8     The region covers a total area of 31,578,552 km and has a population of around 3,783,000,000.

9      The postal network in the Asia-Pacific region comprises 312,300 permanent post offices (48% of the
total number worldwide), manned by 1,623,800 postal employees (29.3% of worldwide postal staff). In the
region as a whole, each postal establishment serves an average of 11,624 inhabitants and an area of
74 km2. Worldwide, each permanent office covers an average of 206 km2 and serves an average of
10,130 customers. However, in some countries in the region, the situation differs greatly from the regional or
global average. The average area covered exceeds the global average of 206 km2 in 10 countries.
                                                         6

10     Based on the NPS, this postal development plan is designed to provide well-coordinated assistance,
involving the UPU International Bureau, governments, postal operators and the APPU, in the development of
a working document which enables better targeting of actions likely to improve results and promote
partnerships which benefit the region.

11     This plan comprises three parts:
i      Situation of postal sector in the Asia-Pacific region.
ii     Areas for development and priorities set.
iii    Implementation, financing and communication of plan.


III.   Analysis of the postal sector situation in the Asia-Pacific region

12    On the whole, the region has made significant progress in implementing reform and improving
services. However, certain areas of the postal sector are still marked by major disparities between countries.
Below are some key aspects of the situation of the postal sector:
–      As regards postal coverage, the situation is fairly satisfactory overall, though coverage in a few
       countries in the region still falls far short of the regional or global average.
–      Growth in domestic letter post and ordinary postal parcels in recent years has been slower than in
       other regions of the world.
–      Postal financial services do not exist in certain countries, while in other countries the standard of these
       services falls far short of customer expectations. Nevertheless, postal financial services represent a
       real opportunity to strengthen the postal network, particularly in rural areas. Postal financial services
       also offer a means of offsetting the effects of falling letter-post volumes by contributing to the
       diversification strategy pursued by operators affected by the crisis.
–      In the case of postal savings services, the introduction of automated systems and services would be a
       means of improving security and would underpin efforts to diversify services.
–      There is a pressing need to establish a reliable, secure, affordable, effective and stable electronic
       payment service to enable money transfers and thus contribute more to the development of the local
       economy.
–      Certain countries still lack a means of tracking and tracing their domestic or international mail.
–      Philatelic policy in the region's countries, while satisfactory, should focus more on innovation and the
       use of new technologies.
–      Most countries in the region still do not fully utilize the potential offered by direct mail. Given the
       region's high profile in international trade, the growth of direct mail, both nationally and internationally,
       should be encouraged; even low-income economies stand to benefit.
–      The potential offered by hybrid mail services should be exploited by countries in the region.
–      Twenty-five countries in the region have introduced postcode systems, and this has had a significant
       impact on quality of service, and on the speed and reliability of mail processing in particular. The other
       11 countries in the region have yet to introduce a postcode system.
–      In the context of growth in international trade, economies and e-commerce, postal parcels should also
       be viewed as a growth driver.
–      Twenty-six countries in the region already use barcodes for their outward parcels. Barcodes have yet
       to be introduced in the other countries.
–      As regards EMS, 18 members of EMS Cooperative in the region have not participated in the EMS
       pay-for-performance plan.
                                                            7

IV.   Areas for development and priorities set

13    The postal development plan for the Asia-Pacific region is based on a pragmatic approach, involving
the definition of precise objectives and the setting of priorities, while taking account of the financial resources
available. It is based on the following development approaches:
–     Improve quality of service at all levels;
–     Develop financial services.

Priority No. 1 – Improve quality of service at all levels

14    This postal development plan for the Asia-Pacific region is a tool covering all vertical activities
(development of products and services) and horizontal activities (development of infrastructures). To
enhance quality of service of the international postal network, the following approach will be adopted at
regional level.

Vertical dimension – development of products and service

15    It is planned to use the forums on the different products/services (letters, parcels and EMS) to discuss
and resolve issues in order to:
–     implement a new approach for improving quality of service for all products (letter post, parcels and
      EMS) and establish a regional quality of service standard for letter-post items;
–     achieve the world standard of J+5 for 80% of letter-post items in most of the region's countries by
      2012 by promoting the introduction of quality management procedures;
–     promote participation in the GMS implementation phase in 2010, including end-to-end quality
      measurement;
–     promote participation in the EMS pay-for-performance plan.

Horizontal dimension – development of infrastructures

16    It is necessary to ensure an effective synergy in the cross-functional areas of working forums, i.e.
telematics, standards, customs, airlines, security and postcodes/addressing. The following actions are
envisaged:
–     Extend the use of IPS, IPS Light or any globally compatible mail tracking system to all countries of the
      region for registered letters, insured items, postal parcels and EMS.
–     Promote the use of barcodes for registered items, insured items and postal parcels.
–     Bring all the region's designated operators into the monthly reporting system developed by the Parcels
      Group in 2007.
–     Promote the introduction of the system of inquiries via the Internet in all countries by 2012.
–     Actively promote the international parcels development strategy and provide the assistance needed to
      put in place minimum specifications for parcels.
–     Promote the use of postcodes and addressing standards, as well as delivery point databases in the
      region's countries.
–     Improve overall security of international mail through group training.
–     Promote the use of UPU standards through group training.

Priority No. 2 – Develop postal financial services (PFS)

17     For a good many designated postal operators, the postal financial services sector represents a large
proportion of revenues. Owing to the sharp increase in the number of migrant workers and their remittances
over the past 10 years, money transfers now represent a strategic market segment. They are also the most
important source of external capital directed towards development and micro-credit projects in many
developing countries (DCs).
                                                      8


18     Several countries in the Asia-Pacific region are among the world's biggest beneficiaries of fund
transfers, which have seen steady growth. Development of the electronic postal payment network is
therefore an urgent priority for the region. One key objective is to open up and facilitate exchanges between
the main countries that issue and receive fund transfers, not only within the region but also between different
regions. This would serve as an encouragement and facilitate extension of the network to include other
countries with less traffic. Exchanges need to be established at the central and regional levels.

19     Some countries in the region are already connected or in the process of connecting to the UPU's
International Financial System (IFS), while others use another system for electronic payments. The ultimate
goal is to interconnect all countries to the worldwide electronic postal payment network. To ensure optimum
success for a fund transfer service, it is necessary to upgrade existing infrastructure and security, introduce
counter automation and train counter staff, gain market intelligence, promote and market payment services
and train customer service staff, introduce cash management, etc. Other actions envisaged include:
–     promoting the Postal Payment Services Agreement as a platform for the worldwide electronic postal
      payment network;
–     contributing to the development of IFS services and networks in all countries, at both national and
      international level, and coordinating the creation of these services through action in the field;
–     modernizing existing IFS services and helping countries to open further exchanges with current IFS
      users, within the region and with other countries and regions;
–     providing staff with technical and commercial training in the area of IFS services.


V.    Implementation of the plan

20    The various development priorities correspond to measures accompanied by sectoral programmes
(see Annex 2, Attachments 1 to 8). The countries that will be priority beneficiaries of these measures have
been identified on the basis of an analysis of the overall situation of the postal sector in the Asia-Pacific
region.

21      In order to implement the plan, it is necessary to prepare country-specific projects for each of the
activities listed. These projects will be drawn up by the Asia-Pacific Regional Programme, in conjunction with
the various International Bureau programmes involved, so that they are in line with the Union's Programme
and Budget. The cooperation of the Restricted Unions and Regional Project Coordinators, and, of course, of
the countries themselves, will also be necessary for gathering statistical and economic data, and monitoring
project implementation.


VI.   Financing of the plan

22     The activities contained in the action plan will be financed mainly with funds under article 17 of the
Union budget (1,763,340 CHF), and national contributions from the postal authorities of the beneficiary
country. Supplementary funds corresponding to credits assigned to sectoral projects (quality of service,
universal postal service, postal financial services, Postal Technology Centre, diagnostic testing, etc.) may
also be used. Rational use of the funds made available by the QSF will also assist in project implementation.
Up to 31 December 2008, the region consumed 62% of QSF revenue. The total capital available to countries
in the region under the QSF amounts to over 15 million USD. This amount represents development potential
for projects in the quality of service field.

23     However, it will still be necessary to use the action plan to gather funding from other sources
(public/private partnerships, donor countries, UNDP, World Bank and regional development banks, etc.).
                                                        9

VII.    Communication plan

24      A communication plan needs to be put in place that is adapted to the following target audiences:
–       The various players at the International Bureau, to enable them to establish cooperative links and
        validate the plan.
–       The governments and postal operators, to increase their knowledge and secure their backing of the
        objectives and priorities defined, and their commitment to implementation of the activities concerned.
–       The APPU, to secure its support for the plan and ensure its cooperation for the implementation phase.
–       The regional organizations and international or regional financial institutions, to improve their
        knowledge and guarantee their contribution to project funding.
–       Other potential partners, especially donor countries.

25      An information booklet will be published to raise awareness among external partners.


VIII.   Conclusion

26    It is clear that, in its current phase, the Postal Development Plan for the Asia-Pacific region provides a
basis for UPU action to promote postal development in the region. It provides an ideal framework for
implementing the Nairobi Postal Strategy (NPS) and promoting intra-regional cooperation.
                                                      10

Supporting postal development in the Asia-Pacific region – Postal development plan for the Asia-
Pacific region


Introduction


Message from the Director General

In resolution C 6/2008 concerning development cooperation policy for the period 2009–2012, the 24th UPU
Congress decided to continue to apply the regional approach during 2009–2012 in the form of regional
development plans (RDPs), as the main tools for implementing the Nairobi Postal Strategy (NPS) in the field.

The regional development plan forms part of the new vision for development cooperation, adopted by the
24th Universal Postal Congress in 2008, and the Nairobi Postal Strategy (NPS), which provides for
implementation of the global strategy at regional level. It is designed to support the tools being developed by
the International Bureau to guarantee uniform implementation of UPU activities in the field by means of a
new approach based on two defining principles:
–     Integration, i.e. the integration of all cooperation activities developed by the International Bureau in a
      common regional framework. The regional development plan also makes it possible to incorporate the
      activities of the regional actors.
–     Regionalization, an approach designed to respond optimally to each region's specific needs by
      creating synergies with regional players and strengthening and diversifying cooperative mechanisms
      in the field (Regional Coordinators, Restricted Unions, economic institutions, leading countries, etc.).

These indicators should make it possible to check the degree to which the aims and objectives contained in
the plan have been achieved. Similarly, it is necessary to measure the various degrees of implementation
against the actions taken, the results expected and the deadlines set.

The 2009–2012 postal development plan for the Asia-Pacific region is based on the setting of concrete
objectives with measurable results. Its implementation is predicated on the commitment of stakeholders, the
UPU International Bureau, the governments and operators involved and the Asian-Pacific Postal Union
(APPU).

The postal development plan for the Asia-Pacific region contains actions aimed at achieving two major
objectives seen as priorities:
–     Improve quality of service at all levels.
–     Develop financial services.

The implementation of the RDPs and the concrete projects stemming from them will begin towards the end
of 2009 and continue until 2012. A progress report will, of course, be submitted to meetings of the Council of
Administration and to the 2010 Strategy Conference, and a final report will be prepared for presentation at
the Doha Congress.
                                                       11

1         Part I – Situation of the postal sector in the Asia-Pacific region

1.1       Assessment of regional development plan for 2007–2008

1.1.1     Improve quality of service

The quality of service objective was to achieve the world standard of J + 5 for 65% of letter-post items in
most of the region's countries by 2008, by encouraging the introduction of quality management procedures,
organizing quality of service seminars and measuring quality of service in all the region's countries.

1.1.1.1   Participation in continuous testing

In 2007 and 2008, the following countries in the Asia-Pacific region participated in continuous testing:

                         2007                                                     2008
AF         Afghanistan                                   AF         Afghanistan
BT         Bhutan                                        BD         Bangladesh
BN         Brunei Darussalam                             BT         Bhutan
CN         China (People's Rep.)                         BN         Brunei Darussalam
FJ         Fiji                                          CN         China (People's Rep.)
HK         Hong Kong, China                              FJ         Fiji
IN         India                                         HK         Hong Kong, China
ID         Indonesia                                     IN         India
IR         Iran (Islamic Rep.)                           ID         Indonesia
MY         Malaysia                                      IR         Iran (Islamic Rep.)
MV         Maldives                                      MY         Malaysia
MN         Mongolia                                      MV         Maldives
NP         Nepal                                         MN         Mongolia
PK         Pakistan                                      MM         Myanmar
PH         Philippines                                   PG         Papua New Guinea
SG         Singapore                                     PH         Philippines
TH         Thailand                                      SG         Singapore
VN         Viet Nam                                      TH         Thailand

Number of links tested without interruption: 64.
Number of links over which an improvement in quality of at least 10% was noted: 5.
Number of links over which a deterioration in quality of at least 10% was noted: 17.

Quality of service remained relatively the same in region, with certain links showing excellent results:

          From                         To                          2007                         2008
           AU                          TH                         97.0%                        85.8%
           DE                          SG                         94.8%                        93.7%
           FJ                          NZ                         94.5%                        88.2%
           US                          SG                         90.8%                        78.9%
           CN                          JP                         90.6%                        91.4%
           JP                          BT                         89.3%                        89.0%
           AU                          MY                         89.0%                        75.7%
           NZ                          FJ                         86.0%                        81.8%

However, only 10 links were tested without interruption. The deterioration of inward quality over links with
industrialized countries appears to be continuing. Only 20% of items were delivered within J+5. Of note was
the mediocre quality of service over most links (inward and outward) with China (People's Rep.), as shown in
the table below.
                                                      12

          From                         To                         2007                        2008
           JP                          CN                        31.2%                       28.5%
           CN                          GB                        27.7%                       37.4%
           BT                          JP                        21.0%                       10.8%
           JP                          VN                        20.9%                       20.5%
           GB                          CN                        15.8%                       8.4%
           CN                          ES                        14.7%                       29.5%
           DK                          CN                        14.7%                       11.4%
           FI                          CN                        13.6%                       10.0%
           DE                          CN                        12.9%                       6.2%
           IN                          FR                        12.8%                       20.7%
           ES                          CN                        11.0%                       2.9%
           FR                          CN                        10.1%                       5.1%
           CN                          FR                        5.8%                        3.5%
           FR                          HK                         2.4%                       4.1%
           NO                          VN                        0.8%                        1.8%

The table below shows the overall results (2006, 2007 and 2008) from industrialized countries to countries in
the Asia-Pacific region and vice versa, as well as the results for links between countries in the region.

From               To                 IC Africa FR Africa EN         Latin     Eastern   Asia and      Arab
                                                                   America     Europe      Pacific countries
Industrialized     2006                                                                    43.3%
countries                                                                                      6.5
                   2007                                                                    40.5%
                                                                                               7.8
                   2008                                                                    32.9%
                                                                                               7.9
Asia and Pacific 2006             58.2%                                                    73.1%
                                     5.9                                                       4.9
                   2007           52.9%                                                    68.7%
                                     6.2                                                       5.9
                   2008           49.4%                                                    63.7%
                                     6.5                                                       5.7

1.1.1.2   Certification

No designated operator in the region has yet been certified.

Efforts should be made to make member countries in the region more aware of the certification system,
which is intended to promote the introduction of quality management structures considered fundamental for
improving quality.

1.1.1.3   New approach to field support for designated operators

The new approach to supporting designated operators in the field is aimed at improving services and
strengthening the integrity of the international postal network. Its implementation will focus mainly on the
following aspects:
–         Commitment-based approach: To improve quality of service, participation in the project should be
          based on a strong commitment; the participating members are therefore requested to show full
          commitment to their performance obligations.
–         Efforts to close the digital divide: Nowadays, a strong physical postal network cannot be achieved if
          it is not supported by a strong electronic network. The implementation of the new approach
          involves paying particular attention to the following points: improved use of information and
          communication technology and full monitoring of all products/services at each stage of the postal
          production chain.
                                                      13

–         Evaluating quality results: evaluating quality is only a first step; the second is to make use of the
          results of the evaluation to improve that quality. Efforts in this area focus on analyzing the results
          and applying them effectively in order to remedy the shortcomings identified.
–         Commercial approach: A commercial approach based on results is the key to the project's
          success. The project activities will focus on the key performance indicators. These indicators are
          the same as those defined as objectives for pay-for-performance activities (payment of terminal
          dues linked to quality of service; bonus system for postal parcels, EMS quality of service-linked
          remuneration plan).
–         Organizational strength: If efforts to improve quality of service are to be effective, member
          countries need to have a better organizational structure. The project addresses this aspect through
          the effective operation of the quality of management certification system. It also strengthens
          member countries' capacity to introduce postcode and addressing systems, an essential element in
          quality of service improvement.

A cooperation agreement was signed between the Universal Postal Union and the Asian Pacific Postal
Union to implement a project aimed at improving quality of service in the region. Ten countries are taking
part in this pilot project: Bangladesh, Bhutan, India, Indonesia, Lao People's Dem. Rep., Malaysia, Maldives,
Mongolia, Sri Lanka and Thailand. Two of the six workshops planned were held in Kuala Lumpur (Malaysia)
from 25 to 29 August 2008 and in Mumbai (India) from 8 to 12 December 2008. During these workshops
specific objectives for each participating country were set and should be achieved by the end of the project.
Project activities are proceeding as planned.

1.1.1.4   Promoting postal addressing

Addressing was one of the topics presented at the quality of service seminar/workshop held in Bangkok from
13 to 15 March 2007. The follow-up done on this event shows that all of the 21 countries that took part have
introduced or are in the process of introducing an addressing system based on the UPU Addressing Guide.

Pacific region member countries have shown a keen interest in benefiting from a specific regional
addressing and postcode project to expand the use of postcodes and delivery point databases in these
countries.

1.1.1.5   Installation of IPS/IPS Light and improving the effective use of IPS/IPS Light and quality of service
          monitoring

At the request of Papua New Guinea, a site survey was conducted in June 2007 to migrate IPS Light to IPS.
The survey found that the country was not ready to use IPS because of network problems between two
offices of exchange. Furthermore, given Papua New Guinea's annual outbound mail volume, IPS Light is
sufficient to cover the country's operation.

An EDI improvement study in Viet Nam was conducted in July 2007. Viet Nam began EDI message
exchanges for EMS in August 2008.

After the seminar/workshop on improving universal postal service quality in Pacific countries held in Nadi
(Fiji) from 30 October to 3 November 2006, Tonga began using IPS Light in February 2008 and exchanging
EDI messages for all mail categories; Tuvalu began using IPS Light in May 2007 and exchanging EDI
messages for all mail categories as well.

A total of 75% of Asia and Pacific countries have installed IPS/IPS Light.

1.1.1.6   Improving postal security

In order to enhance postal security in the region, two workshops were held in Bangkok (Thailand) in 2007
and 2008. As part of the objectives for 2007–2008 in the regional development plan (RDP), the Postal
Security Group (PSG) was to organize two workshops, one as a multi-functional training session in the form
of a workshop aimed at enhancing the skills and knowledge of designated operators, and the other an in-
depth training course on how to deal with unforeseen events, manage crises and their aftermath and review
contingency plans.
14
                                                         15

The first workshop was held from 6 to 9 August 2007 at the Asia Pacific Postal College (APPC) in Bangkok
(Thailand). The course was titled "Basic Mail Theft and Dangerous Goods" and was attended by 26 postal
security representatives from the Asia-Pacific region. At the request of the APPU Bureau Director,
18 observers from an ongoing postal management course also attended the training session. The topics
presented included internal mail theft investigations, dangerous goods training, UPU dangerous goods
regulations, chemical and biological threats, screening methods and employee education. The workshop
also gave a summary of progress on the implementation of Continuity of Operations Plans (COOPs).

The second workshop was held from 4 to 6 November 2008, again at the APPC in Bangkok. The course,
entitled "Revenue Protection and Mail Security", was attended by 12 postal security representatives from the
Asia-Pacific region and 23 observers from two ongoing courses. The two and a half day workshop covered
the functions of the Postal Security Group and the UPU and reviewed airport coordinator duties, revenue
protection and case studies, crisis management, money laundering and cyber security issues. Two of the
instructors were from the Home Team Academy, a law enforcement training institute of the Singapore
Ministry of Home Affairs. The other instructors were made available by the United States Postal Inspection
Service. On the last day of the workshop, participants visited the local international mail processing plant to
observe security measures. After being briefed by plant management, the group observed floor operations,
EMS window operations and were shown examples of facility and cyber security.

In 2007 and 2008, a total of 79 postal representatives from 18 countries received postal security training.

Area of      Project            Objectives and activities               Targeted       Execution    Execution
activity                                                               number of      (number of         (%)
                                                                   countries p) or   countries or
                                                                    products (pr)       products)
Quality of   New approach       Implement new approach                     10 (p)          10 (p)       100.0
service      to field support   aimed at improving quality of
             for member         service for all products (letter
             countries          post, parcels and EMS)
             Workshop on        Achieve world standard of                  18 (p)          15 (p)        83.3
             quality of         J+5 for 65% of letter-post
             service            items in the most countries
                                of region by 2008 by
                                promoting the introduction of
                                quality management
                                procedures
                                Urge all countries in region to            23 (p)          24 (p)       104.3
                                take part in continuous
                                testing of letter-post service
                                quality by 2008
              Promoting         Promote the importance of                  14 (p)          14 (p)       100.0
              postal            postcodes, addressing and
              addressing        databases
              Create or         Implement addressing and                     2 (p)           2(p)         100
              improve           postcode systems
              addressing
              and postcode
              systems
              Installation of   Extend use of IPS, IPS Light                 7 (p)          5 (p)        71.4
              IPS/IPS Light     or any globally compatible
              and increasing    mail tracking system to
              effective use     include all countries in region
              of IPS/IPS        for mail, registered letters,
              Light and         EMS and postal parcels
              quality of
              service
              monitoring
             Increasing         Bolster overall security of                10 (p)          18 (p)       180.0
             postal security    international mail through
                                group training
16
                                                       17

1.1.2       Develop financial services

The objective of postal financial services was to promote postal financial products and fund transfers in the
member countries of the Asia-Pacific region.

1.1.2.1     Regional workshops in Afghanistan, Bangladesh, Bhutan, India, Indonesia, Maldives, Mongolia,
            Nepal, Philippines, Sri Lanka and Viet Nam

Regional workshops held in Delhi (India) from 26 February to 1 March 2007 to support India and
neighbouring countries in using IFS/IFS Light to establish exchanges.

1.1.2.2     Implement IFS or IFS Light and speed up bilateral international money order exchanges

Regional Workshops for the implementation of "International Express Money Orders" via IFS network held at
the Asian Pacific Postal College in Bangkok in June 2007 and in August 2007.

The aim of the pilot experiment conducted by La Poste (France) and the UPU/PTC was to successfully
implement an electronic money order service – the International Express Money Order (IEMO) – between
several Asian countries from the point of view of reliability, efficiency, networking and pricing.

The first concern, before any technical aspects or tools were considered, was to create a common service
with every legal and marketing aspect clearly defined in a "multilateral agreement" based on specific inputs
from each country.

The countries selected for this experiment (the Bangkok Group) were the following ASEAN countries: Brunei
Darussalam, Cambodia, Indonesia, Lao People's Dem. Rep., Malaysia, Myanmar, Philippines, Singapore,
Thailand and Viet Nam.

An operational workshop and a marketing workshop were organized to coordinate and supervise
implementation of the IEMO service.

IFS users are Australia, China (People's Rep.) and India. A total of 12 countries are testing IFS applications.

Signatories of the Postal Payment Services Agreement (Geneva) are Bangladesh, Bhutan, Brunei
Darussalam, Cambodia, China (People's Rep.), Dem. People's Rep. of Korea, India, Indonesia, Iran (Islamic
Rep.), Japan, Korea (Rep.), Malaysia, Mongolia, Nepal, Pakistan, Philippines, Singapore, Sri Lanka,
Thailand, Tonga (including Niuafo'ou) and Viet Nam.

Area of       Project           Objectives and activities              Targeted        Execution    Execution
activity                                                              number of       (number of         (%)
                                                                 countries (p) or    countries or
                                                                   products (pr)        products)
Develop-      Regional          Coordinate the creation of                  8 (p)           8 (p)       100.0
ment of       workshop          IFS services through action
postal                          in the field
financial
services
              Implement IFS     Contribute to the                         36 (p)           15 (p)         41.7
              or IFS Light      development of IFS services
              and speed up      in all countries
              bilateral
              international
              money order
              exchanges

1.1.3       Formulate and monitor implementation of reforms

The objective of postal reform was to help countries to implement a global postal reform and development
process through the IPDP approach, as a priority for the least developed countries, and conduct audits in
countries undertaking reform measures.
                                                       18

Formulation of IPDPs has helped countries to implement a global postal reform and development process.
Within the framework of this regional project, 10 countries have already profited from work relating to the
IPDP (Bangladesh, Bhutan, Fiji, Lao People's Dem. Rep., Mongolia, Nepal, Papua New Guinea, Philippines,
Sri Lanka et Viet Nam).

Area of      Project             Objectives and activities             Targeted        Execution     Executio
activity                                                              number of       (number of            n
                                                                 countries (p) or    countries or        (%)
                                                                   products (pr)        products)
Postal       Formulation of      Encourage member                           9 (p)          10 (p)       111.1
reform       IPDPs and           countries to adopt the IPDP
             monitoring their    concept
             implementation

1.1.4      Human resources training

The objective of human resource development was to enhance postal employees' knowledge and skills and
enable them to improve the services offered to customers.

Human resources development activities aimed to offer quality training to postal officials from countries in
the region in cooperation with the Asia Pacific Postal College.

Eight fellowships were granted to Bhutan, Dem. People's Rep. of Korea, Kiribati, Samoa, Solomon Islands,
Tuvalu and Vanuatu.

Area of      Project            Objectives and activities              Targeted        Execution     Executio
activity                                                              number of       (number of            n
                                                                 countries (p) or    countries or        (%)
                                                                   products (pr)        products)
Staff        Human              Develop postal employees'                   7 (p)           8 (p)       114.3
training     resources          knowledge and skills and
             development        enable them to improve the
             through            services offered to customers
             training at the
             Asia Pacific
             Postal College

1.1.5      Introduction of cost accounting

The objective of cost accounting was to help member countries develop cost accounting systems for
calculating their costs, and improve international accounting systems.

The purpose of cost accounting is to calculate the costs of a business and analyze its overall profitability. It
also makes it possible to calculate the cost of universal service, which is useful for negotiations with public
authorities on issues relating to funding.

Twenty countries are in the process of introducing a cost accounting system, 12 of them with the help of
QSF funding (Afghanistan, Bhutan, Cambodia, Kiribati, Maldives, Myanmar, Nepal, Papua New Guinea,
Samoa, Solomon Islands, Timor-Leste (Dem. Rep.) and Tuvalu) and eight with the help of national and
regional MIPs (Bangladesh, Lao People's Dem. Rep., Mongolia, Philippines, Sri Lanka, Tonga (including
Niuafo'ou), Vanuatu et Viet Nam).
                                                        19

Area of      Project            Objectives and activities                  Targeted       Execution      Executio
activity                                                                  number of      (number of             n
                                                                     countries (p) or   countries or         (%)
                                                                       products (pr)       products)
Cost         Introduction of    Introduce the UPU cost                        12 (p)          20 (p)        166.7
account-     cost               accounting model in the
ing and      accounting         postal businesses of the
cost                            beneficiary countries of the
analysis                        regional QSF project by the
                                end of 2007

1.1.6      Postal market

The objective of postal market activities in the field was to grow the postal market and help to publicize
modern philatelic techniques, increase knowledge of direct mail and increase advertising mail volumes.

During 2005–2008 cycle, the UPU had planned to organize a philately workshop in Brisbane (Australia), but
later decided to include it in the 2009–2012 regional development plan to have it coincide with an important
world philatelic event.

The Direct Mail Development Seminar was held in Sydney (Australia) from 23 to 24 June 2008 to promote
direct mail and develop the market domestically and internationally in the Asia-Pacific region.

Area of      Project            Objectives and activities                  Targeted       Execution      Executio
activity                                                                  number of      (number of             n
                                                                     countries (p) or   countries or         (%)
                                                                       products (pr)       products)
Postal       Philately          Encourage use of the WADP                     25 (p)           21 (p)        84.0
market       workshops          numbering system (WNS)
             Direct mail        Develop knowledge of direct                   18 (p)           15 (p)        83.3
             seminars           mail and increase advertising
                                mail volumes

1.2        General situation in the Asia-Pacific region: key facts

According to the definition adopted by the UPU, the Asia-Pacific region comprises 36 countries covering
31,578,552 square kilometers with a population of 3.783 billion 1 – more than half the world's total population.

The region includes three industrialized countries, 19 developing countries and 14 least developed
countries. In PPP terms, the three industrialized countries have a per capita GDP of between 24,996 and
31,794 USD. For the developing countries, per capita GDP ranges from 2,563 to 34,833 USD. For the least
developed countries, the figures range from 1,550 to 8,177 USD. 2

The economy of the region has been hard hit by the global financial crisis. The impact mainly involves the
trade channel, as many economies in the region are export-oriented. The decline in exports has weakened
the region's current account position. Projections indicate that the surplus will decline to 4.9% of GDP in
2009 and to 4.7% in 2010, down from 6.5% and 5.3% in 2007 and 2008 respectively. On the other hand, the
average regional 3 inflation in 2008 was 7.9% and is expected to ease to 2.4% in 2009, as global commodity
prices continue to fall. 4




1
  Source: ESCAP Statistical Yearbook for Asia and the Pacific 2008.
2
  Source: Human Development Report 2007/2008 (per capita GDP figures relate to 2005), published by United Nations.
3
  Considering figures for the UNESCAP classification of the Asian region, with a total of 50 countries.
4
  Source: Asian Development Bank Outlook for 2009.
                                                         20

The previous growth rates seen throughout the region have slowed and, in some cases, have even declined.
Economic growth in 2008 already fell to 5.8% from 8.8% in 2007. In 2009, growth is projected to drop further
to 3.6%; 5 recovery is expected to begin in 2010, with a growth of 6% for that year. 6

As a result of the progressively deeper and more extensive financial crisis, trade and investment inter-
linkages of the region's three industrialized countries (Japan, Australia and New Zealand). With the financial
crisis originating in the United States, their economies had been greatly affected. Japan and New Zealand
already entered into recession in 2008, with growth rates of -0.7% and -0.8%, while Australia still
maintains positive growth of 2.4%. For 2009, a joint recession in growth of -2.2% (Australia 0.5%, Japan
-2.5% and New Zealand -1%) has been estimated. On the other hand, inflation in 2008 has been kept under
control in the three countries, with a joint rate of 1.7%. For 2009, even a deflation of 0.2% is expected in
Japan. 7

Economic growth in East and Northeast Asia 8 slowed to 6.1% in 2008, down from 10.0% in 2007, mainly as
a result of the slowdown in manufactured exports. Despite the slowdown, it remained the fastest growing
region in Asia. It is expected to decelerate to 3.8% in 2009. 9 Growth in China (People's Rep.) slowed to 9%
in 2008, the lowest level since 2002, owing to the slowing export-related activities. The aggregate inflation
quickened to 5.2% in 2008, with a projected figure of 1.1% in 2009, and 1.3% in 2010. The current
subregional account balance deteriorated in 2008 and is expected to worsen in 2009.

Southeast Asia's 10 growth eased to 4.3% in 2008, down from 6.5% in 2007, affected by the global slowdown
of export-oriented activities (mainly contracting in highly trade-exposed countries such as Malaysia,
Singapore and Thailand). The rate is expected to plummet to 1.5% in 2009, the slowest among the
UNESCAP sub-regions. Growth in Viet Nam's GDP slowed to 6.2% after three years of 8%-plus expansion.
Sub-regional inflation rose to 8.8% in 2008, but has been easing with the slowing demand and declining
commodity prices, with a rate of 3.3% expected in 2009, less than a half that of the previous year.
Cambodia, Philippines and Singapore suffered from inflation rates that tripled between 2007 and 2008. In
aggregate, the current account surplus will ease slightly, but most of the bigger economies are expected to
record surpluses. In South and Southwest Asia 11, growth moderated to 5.9% in 2008 from 7.5% in 2007 and
is expected to slow to 4.3% in 2009. India's economy slowed from 9% in recent years to an estimated 7.1%
in 2008, and will probably drop to 5% in 2009. The inflation was the highest of the region (about 11.6% in
2008) and is expected to moderate to 9.6% in 2009 (still too high). The economies of South Asia (mainly
Bangladesh, Pakistan, Nepal, and Sri Lanka) are heavily dependent on workers' remittances and their
exports are concentrated in garments and textiles. Both sources of foreign exchange weakened in 2008
owing to constraints and could worsen in 2009. The Islamic Republic of Iran, a net oil exporter, maintained a
robust growth of about a 6.5% in 2008, with an estimated inflation of 25%. It is expected to experience
slower growth of about 5.0% due to the sharp decrease in oil prices. In Afghanistan, the economy
experienced strong growth of 11.5% during 2007, which dropped to 7.5% in 2008, mainly for agricultural
reasons. The inflation rate in 2008 was as high as 24% and the economy remains heavily dependent on
foreign aid.
                             12
Growth in the Pacific Islands increased to 4.8% in 2008, thanks to high energy prices benefiting resource-
rich Papua New Guinea and recoveries in Fiji and Tonga. It is predicted to slow to 3% in 2009, owing to the
drop in the number of tourists from United States, New Zealand and Australia. Inflation rose last year to a
sub-regional average of 8.7% because of rising global oil prices, but is expected to ease in 2009.

Evidence shows that most countries of the region are better prepared to face the crisis than they were in
1997. Now, however, a cooperative and comprehensive response is needed to balance economic, social
and environmental considerations.


5
  Source: Economic and Social Survey of Asia and the Pacific 2009, published by UNESCAP.
6
  Source: Asian Development Bank Outlook for 2009.
7
  Source : Economic and Social Survey of Asia and the Pacific 2009, published by UNESCAP.
8
  According to the UNESCAP classification, this sub-region includes China (People's Rep.); Hong Kong, China; Macao,
China; Republic of Korea and Mongolia.
9
   Source: Asian Development Bank Outlook for 2009. East Asia including: China (People's Rep.); Hong Kong, China;
Taiwan Province, China; Republic of Korea; Mongolia.
10
   UNESCAP sub-regional classification for Southeast Asia.
11
   UNESCAP sub-regional classification for South and Southwest Asia, including Turkey.
12
    Pacific sub-region includes: Cook Islands, Fiji, Kiribati, Marshall Islands, Micronesia, Palau, Papua New Guinea,
Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu, as for the UNESCAP classification.
                                                             21

1.2.1    Situation of the postal sector

This section presents the status of postal services in the Asia-Pacific region, based on specific data and
quantified indicators. Analysis of these data will enable us to identify priority development areas for each
country. It is worth noting that the regional estimates are based on the data available for each country. The
statistical information presented in this document refers solely to the developing countries of the region (i.e.
excluding Australia, Japan and New Zealand), and is based on the latest available figures.

The general situation in these countries is as follows (see Annex 1, Attachment 1).

World postal          The postal network in the Asia-Pacific region comprises 312,300 permanent post
network coverage      offices (48% of the total number worldwide), manned by 1,623,800 postal employees
                      (29.3 % of worldwide postal staff). In the region as a whole, each postal establishment
                                                                                          2
                      serves an average of 11,624 inhabitants and an area of 74 km . Worldwide, each
                                                                              2
                      permanent office covers an average of 206 km and serves an average of
                      10,130 customers. However, in some countries in the region, the situation differs
                      greatly from the regional or global average. In two countries (Cambodia and Timor-
                      Leste (Dem. Rep.)), the average number of inhabitants served by each post office is
                      more than 180,000, and in two others (Afghanistan and Papua New Guinea), the
                      number exceeds 59,000. In seven other countries, the average number of inhabitants
                      served by each post office is more than 20,000. In the remaining countries, the
                      average ranges between 1,400 and 20,000. The average area covered exceeds the
                      global average of 206 km2 in 10 countries.

Low rate of return Postal income
and low income per
employee           Global postal operating revenue continues to rise, in line with the trend observed over
                   more than 20 years. Worldwide, operating revenue reached 215.2 billion SDR in
                   2007 (up 6.1% compared with 2006). In the Asia-Pacific region, this growth was not
                   as strong: operating revenue rose by 5.3% in 2007 to reach a total of 10.49 billion
                   SDR (compared with 9.96 billion SDR in 2006). Income per employee was 6,457
                   SDR in the countries of the region (compared with 38,786 SDR worldwide); of all the
                   regions of the world, the Asia-Pacific result was one of the weakest.

Principal sources of In 2007, 30% of postal income in the Asia-Pacific countries was generated by letter
revenue              post, 14% by postal parcels and logistics services, 46% by postal financial services
                     and 10% by other products or services (worldwide: letter post 60%; postal parcels
                     21%; financial services 14%; other products 5%). Countries in which postal financial
                     services accounted for a large share (over 50%) of total postal revenue included
                     Bangladesh, China (People's Rep.) and India.

                      Income from philately as a percentage of total income ranged from 0.3% (Sri Lanka)
                      to 6% (Bhutan).

                                            Afric                            63                                      11         19              7

                        Latin America and Caribbean                            66                                          26                  2 6
                                                                               %
                                       Asia-Pacific         30                      14                               46                        10
                                                            %
                                   Europe and CIS                  42                             8%          24                     26

                                    Arab countries                40                          6                      44                        10

                             Industrialized countries                   54                                            29                  13        4

                                                      0          20                      40                 60             80                       100

                                           Lette          Parcel post and                         Postal financial          Othe
                                           pos            logistics services                      service                   products



                      Graph – Operating income by postal product in 2007 (in %).
                      Source: UPU Postal Statistics 2007, Berne, December 2008.
                                                                    22

Almost one third of        In 2007, in financial terms, of the member countries that provided the IB with data,
Asia-Pacific Posts         15 operators reported a profit and four others reported losses. 13 According to the
are making a profit        information held by the UPU Regional Project Coordinator's office, the majority of the
                           remaining 15 countries made losses. Most countries in the region lack a cost
                           accounting system, though several are in the process of adopting the UPU cost
                           accounting model.

1.2.2        Universal postal service

Only 1% of the             As regards postal coverage, only 1% of the population has no access to postal
population lacks           services in the region, and 94% of the population benefits from home mail delivery.
access to postal           About 5% of the population has to collect mail from a postal establishment or a post
services                   office box. Mail delivery to post office boxes is found mainly in Pacific island
                           countries.

                           In most cases, traditional activities (letter post, parcel post and, to some extent,
                           financial services) are still dominated by the public postal operator; this is particularly
                           true in the case of letter post.
                                                          14
                           According to one UPU study , five countries in the region have not defined the
                           scope of the universal postal service; 17 have defined it, and four say they provide it.
                           This study contains no information on the remaining countries in the region (see
                           Annex 1, Attachment 2).


                                               Africa             23%                                 64%                       13%

                          Latin America and Caribbean                                    81%                              14%     5%

                                         Asia-Pacific                                          94%                                5%

                                     Europe and CIS                                             98%

                                      Arab countries                              64%                               32%

                              Industrialized countries                                         95%

                                                 Total                                   81%                              16%

                                                         0%              20%            40%              60%        80%               100%
                                                              Population benefiting from home delivery
                                                              Population having to collect mail from post offices
                                                              Population with no postal services
                           Graph – Access to mail delivery in 2007.
                           Source: UPU Postal Statistics 2007, Berne, December 2008.

                           In urban areas, mail is delivered to homes once a day in 37.5% of the region's
                           countries, and twice a day in 40.6% of the countries. In rural areas, mail is delivered
                           to homes at least six times per week in 38.1% of countries, and five times in 25% of
                           countries.

1.3          Sector reform

Status of postal           Globalization and liberalization of the postal market, increasing competition,
reform                     technological advances and higher customer expectations have led many gov-
                           ernments in the region to undertake postal reform.

13
     UPU statistics.
14
     Status and structures of postal administrations, UPU International Bureau.
                                                         23


                        Several countries have launched the postal reform process, each in its own manner.
                        The liberal approach, involving the abolition of monopolies and the opening up of the
                        postal market to full competition is not very popular in the region. There is only one
                        country in the region where the statutory monopoly has been abolished and the
                        postal market opened to full competition. The model involving retention of an element
                        of the postal monopoly for basic postal services and the liberalization of the courier
                        and express mail market is more widespread. The extent of a monopoly for basic
                        postal services differs from country to country in the region.

                        In several developing countries in the region, reform is based on the objective of
                        making the enterprise financially viable. Countries are now coming to realize that this
                        process should be accompanied by a guarantee of quality universal postal services
                        at affordable prices.

Regulatory              As regards the status and structures of the postal services, in the region's 35
framework               countries, the Ministry has a regulatory role, and in 10 of these countries, there is an
                        independent regulator other than the Ministry. The main role of these regulators is to
                        set down the general principles for postal development. Furthermore, all of the
                        region's countries except Cambodia have separated the regulator's functions from
                        those of the postal operator. These operators have been designated to fulfil the
                        obligations mentioned in article 2 of the Universal Postal Convention. However, their
                        legal status varies from country to country (see Annex 1, Attachment 3).

                        Data concerning the entities responsible for fulfilling the obligations arising from
                        adherence to the Acts of the Union are available on the UPU website at:
                        http://www.upu.int/acts/fr/entities responsible for fulfilling the obligations en.pdf.

1.4       Main trends and characteristics of three-dimensional postal network

1.4.1     Physical network dimension (letters, parcels, EMS, etc.)

Most member countries of the Asia-Pacific region offer basic postal services (letters, packets, parcels, etc.),
together with financial services.

1.4.1.1   Letter post

Continuous decline      Domestic service

                        Letter-post volumes in the region continued to decline in 2007. With 43.2 billion
                        items, this represents a drop of -0,9% compared with the previous year (and with a
                        decrease worldwide of -0,1%), the weakest performance of all the world's regions.
                        Following record volumes in 2000, traffic continues to decline for the seventh straight
                        year. Development of the domestic letter-post service in the region over the last
                        several years has therefore been less favourable than in other regions with an
                        annual average growth rate of -3.8% between 2002 and 2007 (world average of -
                        0.3%).

                        The portion of regional volumes compared with the total worldwide (10%) also
                        represented a decline in 2007. The countries with the largest domestic volumes were
                        China (People's Rep.), India, Korea (Rep.) and Thailand. Despite this trend, more
                        than one third of the region's countries saw their traffic increase
                                                                                  24

                                Evolution of letter-post volumes in Asia-Pacific countries over the period 1990–2007

                                   120

                                   110

                                   100
                                               199     199         199     199    199     200    200      200   200
                                       90
                                                                                                                                  Domestic service
                                       80
                                                                                                                                  International service
                                       70

                                       60

                                       50

                                         Basis, 1990 = 100

                                Source: UPU Postal Statistics 2007, Berne, December 2008.

                                While the number of items posted per inhabitant was low in 2007, with 12 items
                                (worldwide average 66 items), it was close to the average for developing countries,
                                which was 13 items.

Average number of letter-post items posted per inhabitant in 2007

                                 0.0                          5.0                   10.0                    15.0                    20.0


                      Africa                         2.7                     Domestic               International service
                                   0.2                                       service                – dispatch

  Latin America/Caribbean                                                                                                         18.6
                                       0.3

                 Asia/Pacific                                                                    12.0
                                   0.2

                                                                                                                           36.6
                 Europe/CEI             0.6

            Arab countries                                  4.1
                                         0.8

   Industrialized countries                                                                                                397.5
                                                              4.5

                                                                                                                            65.1
                       TOTAL             0.8


 Source: UPU Postal Statistics 2007, Berne, December 2008.

 Total number of domestic letter-post items (millions of items)

                                                                                                                Average variation               Breakdown
                                                                                                                                                worldwide
                                         1990              2000           2005          2006      2007      2006/2007       2002/2007          2002      2007
  Africa                                2,823              2,683          2,024     2,062         2,062            6.7%            1.6%        0.5%        0.5%
  Latin America and                     4,878         10,737             10,054    10,527        10,527            1.8%            -0.8%       2.6%        2.5%
  Caribbean
  Asia-Pacific                         46,017         53,451             43,743    43,568        43,568            -0.9%           -3.8%      12.3%       10.0%
  Europe and CIS                       71,123         14,652             17,342    17,578        17,578            4.7%            2.8%        3.8%        4.2%
  Arab countries                             966           1,291          1,260     1,325         1,325         17.4%              5.3%        0.3%        0.4%
  Industrialized countries         294,986           351,435         356,013      358,527       358,527            -0.3%           0.8%       80.6%       82.4%
  Total                            420,794           434,249         430,436      433,586       433,344            -0.1%            0.3%     100.0%       100.0%
  Source: UPU Postal Statistics 2007, Berne, December 2008.
                                                                     25

Average number of letter-post items posted per inhabitant in 2007 (or latest year available)


                   Australia                                                         254.2

          Hong Kong, China                                                   187.6

                      Japan                                               172.4

               Korea (Rep.)                                   98.7

                    Malaysia                         46.8

               Macao, China                          46.0

                        Fiji                   32.7

                  Thailand                    27.6

                   Sri Lanka                18.3

       China (People's Rep.)                17.3

          Iran (Islamic Rep.)           14.5

                       India           8.2

                   Mongoli            6.7

                   Vanuatu            4.0

                  Indonesia           4.0

                   Maldive            3.9

                      Tonga           3.5

           Solomon Islands            3.1
                      Nepal       2.8

                     Samoa        2.1

                    Pakistan      2.1

                  Philippines     1.8

                    Bhutan        1.8
                 Myanmar          1.8

                      Nauru       1.7

                Bangladesh        0.8

         Papua New Guinea         0.6

                     Kiribati     0.4
                Afghanistan       0.2

                 Cambodia         0.1
     Lao People's Dem. Rep.       0.1

                                0.0                         100.0           200.0            300.0

Source: UPU Postal Statistics 2007, Berne, December 2008.
Note. – 2006: Fiji, Korea (Rep.); 2005: Solomon Islands; 2004: Nepal; 2003: India, Kiribati, Samoa, Vanuatu; 2002:
Macao, China.
                                                              26

                             International service

                             The decline in volumes in this region has continued for over a decade. The
                             557 million international service items in 2007 represented a -0.6% fall compared
                             with the previous year, which was much more pronounced than the worldwide trend
                             (0.9% in 2007). China (People's Rep.), Hong Kong (China), India and Singapore
                             accounted for more than two thirds of all items in 2007. Volumes were declining in
                             more than half the countries of the region. Even so, this region generates around
                             10% of world letter-post traffic. For 2002–2007, the average annual decrease was -
                             3.1% (worldwide average decrease was -2.6%).

 Total number of international letter-post items – Dispatch (millions of items)

                                                                                   Average variation        Breakdown
                                                                                                            worldwide
                                    1990     2000     2005     2006      2007    2006/2007   2002/2007     2002      2007
  Africa                             489      251      146         123    134        8.4%        -8.5%    3.3%      2.4%
  Latin America and                  392      184      153         148    137        -7.4%       -1.7%    2.4%      2.5%
  Caribbean
  Asia-Pacific                     1,012      826      559         560    557        -0.6%       -3.1%   10.5%     10.2%
  Europe and CIS                     800      375      296         282    262        -7.2%       -4.8%    5.4%      4.8%
  Arab countries                     596      507      268         253    283       11.7%        -7.7%    6.8%      5.2%
  Industrialized countries         5,220    5,260    4,065     4,057     4,098       1.0%        -1.7%   71.7%     74.9%
  Total                            8,510    7,402    5,485     5,423     5,470       0.9%        -2.6%   100.0%   100.0%
  Source: UPU Postal Statistics 2007, Berne, December 2008.

                             In this region, the number of international items was in line with the worldwide
                             average, with international mail representing 1.3% of total mail items. The number of
                             items posted per inhabitant was 0.2, compared with the worldwide figure of 0.8 items.
                             This decrease was due primarily to the correlation between the state of the economy
                             and the postal sector.

                             In this section, data on the international service always relate to outward items.

1.4.1.2    Postal parcels

Domestic service –           Domestic service
confirmed growth
                             With 295 million domestic items in 2007, the growth of ordinary parcels continued for
                             the second straight year. The growth rate of 4.3% was higher than the world rate of
                             3.2%, and represents a recovery after years of weak growth: For 2002–2007, the
                             average yearly change in the total number of domestic ordinary parcels was -7.2%,
                             the weakest performance of all the world's regions, while the overall change was a
                             growth rate of 7.9% The potential in this area was confirmed by the fact that the Asia-
                             Pacific region generated only 4.5% of worldwide parcel volume in 2007. Nearly two
                             thirds of the region's countries saw their traffic increase, Parcels volumes in the
                             region are very concentrated, with only three countries accounting for nearly 90% of
                             the total in 2007 (Korea (Rep.), India and China (People's Rep.)).

                             The average number of parcels posted per 1,000 inhabitants was 82.4 (compared
                             with 985 worldwide).
                                                                             27

Evolution of postal parcel volumes in Asia-Pacific countries over the period 1990–2007

   200

   180

   160

   140
                                                                                            Domestic service
                                                                                            International service
   120

   100
          199     199   199    199        199     200       200     200    200
     80

     60


Source: UPU Postal Statistics 2007, Berne, December 2008.


Total number of ordinary domestic postal parcels (thousands of items)

                                                                                                       Average variation        Breakdown
                                                                                                                                worldwide
                                           1990               2000              2006        2007         2006/       2002/     2002      2007
                                                                                                          2007       2007
 Africa                                   8,374               2,621             3,661      3,372        -7.9%        4.2%     0.1%      0.1%
 Latin America and                     29,572                11,989         24,481        34,206        39.7%       26.2%     0.2%      0.5%
 Caribbean
 Asia-Pacific                         283,173               462,038        282,890       295,036         4.3%       -7.2%     9.6%      4.5%
 Europe and CIS                       120,131                58,474         65,960        68,692         4.1%        2.5%     1.4%      1.1%
 Arab countries                             667                   867            934         859        -8.1%       -1.1%     0.0%      0.0%
 Industrialized countries            2,755,552          4,152,783         5,935,691     6,114,835        3.0%        9.1%    88.7%     93.8%
 Total                               3,197,471          4,688,772         6,313,617     6,517,000        3.2%        7.9%    100.0%   100.0%
 Source: UPU Postal Statistics 2007, Berne, December 2008.



Number of postal parcels (domestic and international) posted per 1,000 inhabitants in 2007




                                                                          146
                            ’6,822

                                                                                82
                                                        4


                                                              5
                                     61


                                          Asia-Pacific:
                                          Worldwide average: 985

Source: UPU Postal Statistics 2007, Berne, December 2008
                                                                 28

International service International service
– lower volumes
                      Totalling 4.2 million items in 2007, international postal parcel traffic dropped by –
                      1.9%, representing a second straight year of decreases after record volumes in 2005.
                      Average annual growth in the Asia-Pacific region was 0.8% over the 2002–2007
                      period, compared with worldwide growth of -3.9%. Ordinary postal parcel traffic for
                      the region represented 9.5% of traffic worldwide. International service items, as a
                      percentage of total parcel items posted, rose to 1.4% for the Asia-Pacific region,
                      compared with the worldwide average of 0.7% in 2007. Two countries by themselves,
                      China (People's Rep.) and Hong Kong (China), generated half of the region's total.
                      This situation was due to the state of the global economy as a result of the crisis.

 Total number of ordinary international postal parcels (thousands of items)

                                                                                    Average variation     Breakdown worldwide
                                          1990       2000       2006       2007      2006/        2002/       2002       2007
                                                                                      2007         2007
     Africa                                753        306        426        555     30.2%        -5.9%       0.8%       1.3%
     Latin America and Caribbean           480        416        603        571      -5.3%        3.5%       1.3%       1.3%
     Asia-Pacific                         4,039      3,465     4,281      4,201      -1.9%        0.8%       9.1%       9.5%
     Europe and CIS                       1,037       848      1,364      1,419       4.1%        6.5%       2.0%       3.2%
     Arab countries                        752        577        612        549     -10.3%       -6.1%       1.6%       1.2%
     Industrialized countries            46,825     30,097    32,375     36,838     13.8%        -4.7%      85.2%      83.5%
     Total                               53,885     35,710    39,661     44,133      11.3%       -3.9%     100.0%     100.0%


1.4.1.3       EMS

EMS extensively                 EMS customers look for four key product features: reliability, speed, price and
provided in the                 information. EMS will grow only if these requirements are met to customers'
region                          satisfaction, and this begins with fulfilling service commitments at least 95% of the
                                time and meeting customer service expectations.

                                The 155 members of the EMS Cooperative are both suppliers to and customers of
                                each other. Members' commitment to the EMS network is demonstrated by
                                achievement of the performance standard promised and the provision good customer
                                care. Twenty-eight countries of the region are members of the UPU EMS
                                Cooperative.

                                Almost all countries in the region offer domestic and international EMS (express mail)
                                                                           15
                                services. A few countries in the region which do not yet provide the international
                                service are planning to do so in the near future. The scope of this service differs from
                                country to country. Some of the countries offer this service to only a few countries,
                                while others offer it to almost all countries in the world. In a few cases, this service is
                                provided in partnership with private operators. Some of the countries in the region still
                                do not provide the track and trace facility for domestic or international items.

Growth of EMS                   The total of declared EMS exports for 2007 was 43,942,459 items, an increase of 9%
traffic                         compared with 2006. This information is based on the replies from operators to the
                                annual traffic volume questionnaire issued by the International Bureau in April 2008.

                                The graph below shows the export growth by region based on traffic volumes of
                                those operators that provided information for both 2006 and 2007. Africa showed the
                                biggest growth of nearly 31%, while in Europe there was just over 0.1% growth.
                                Growth in the other regions ranged from 3% to 10%.
                                Export growth by region based on traffic volumes 2006–2007

15
     Afghanistan, Timor-Leste (Dem. Rep.) and Tonga.
                                           29



    35%
    30%
    25%
    20%
                                                                                            % Growth
    15%
    10%
     5%
     0%




                            Asia/Pacific
           Africa




                                                                        America



                                                                                  America
                                                Caribbean
                     Arab




                                                            Europe




                                                                                   North
                                                                         Latin
The chart below shows the percentage of export traffic generated by each region.
Asia-Pacific remains the largest EMS region with over 70% of total EMS generated
there. North America generated nearly 18% of the traffic, meaning that these two
regions account for nearly 90% of all traffic.

Percentage of export traffic generated by each region 2006–2007


                                                              Caribbean
                                                                0.1%

                                                                     Europe
                                                                      5.8%

                                                                      Latin America
           Asia/Pacif ic                                                   3.1%
             70.7%
                                                                       North
                                                                      America
                                                                       17.8%

                                                             Af rica
                                                             0.6%

                                                            Arab
                                                            1.8%




All of the key global performance indicators for EMS showed an improvement from
the end of 2007 to the end of 2008. The biggest improvement was in delivery
scanning performance, which increased from 92.8% to 95.4% with a high of 96.2%
reached in August. Global delivery on time performance increased from 84.5% to
85.8%, but in October it was as high as 88.8%. On-time transmission increased from
92.4% to 93.0%, inbound scanning increased from 97.7% to 98.2% and on-time
customer service response increased from 95.3% to 96.5%.

During 2008, the number of members with tracking systems in full production
increased from 107 to 124.
                                                             30

1.4.1.4   Other postal products

Direct mail – a        Around the world, advertising items on average represent at least 38% of letter-post
sector showing         items in the domestic service and at least 10% of items in the international service.
promise                Direct mail is one area of letter-post activity which is growing rapidly. Countries in the
                       Asia-Pacific region have been slow to exploit this market segment. At least 39% of the
                       countries in the region offer domestic advertising mail services and at least 12% offer
                       international advertising mail services. These figures are significantly lower than the
                       global figure of at least 63% of member countries offering an advertising mail service
                       in their domestic service and at least 24% offering it in their international service.

                       Member countries offering a domestic advertising mail service (as a percentage of the
                       total number of member countries in each region), 2006–2007)

                                                                                         53%
                                             Africa                                    49%                    2007
                                                                                               61%            2006
                        Latin America and Caribbean                                            61%

                                        Asia-Pacific                             39%
                                                                               36%
                                                                                                        74%
                                    Europe and CIS                                                    71%
                                                                                                          81%
                                     Arab countries                                            62%
                                                                                                              86%
                             Industrialized countries
                                                                                                              86%
                                                                                                63%
                                                Total                                         59%

                                                        0%        20%         40%          60%         80%           100%


                       Source: UPU Postal Statistics 2007, Berne, December 2008.

Direct Mail Advisory   Some initiatives have already been implemented in the region, especially through
Board activities and   close cooperation with the Asian-Pacific Postal College (APPC) and educational
cooperation with       modules dedicated to direct mail and direct marketing. Although five countries in the
local postal and       region are members of the UPU Direct Mail Advisory Board (Australia, India, Iran
industry               (Islamic Rep.), New Zealand and Pakistan), there have also been ongoing contacts
organizations          with other countries in the region through postal and industry organizations. For
                       example, contacts with direct marketing associations in several countries in the region
                       have intensified over the past few years.

                       Member countries offering an international advertising mail service (as a percentage of
                       the total number of member countries in each region), 2006–2007

                                                                                    21%
                                             Africa                           16%                              2007
                                                                                           27%                 2006
                         Latin America and Caribbean                           18%
                                                                        12%
                                         Asia-Pacific                   12%
                                                                                          26%
                                     Europe and CIS                                          29%
                                                                         14%
                                     Arab countries                10%
                                                                                                              43%
                             Industrialized countries                                                         43%
                                                                                       24%
                                                Total                                21%

                                                        0%        10%          20%           30%        40%           50%


                       Source: UPU Postal Statistics 2007, Berne, December 2008.
                                                         31

DMAB survey           As regards the provision of direct mail products and services, a DMAB survey was
                      conducted in 2007 and 2008 with the following results (number of replies: 21;
                      response rate: 58%).

                      Question                                                                          %
                      1     Direct mail product (service) – domestic
                            a    addressed                                                            67%
                            b    unaddressed                                                          76%
                      2     Training for your customers                                               29%
                      3     Creative and copy                                                         24%
                      4      Master address databases (delivery point databases)
                             a     for internal operational purposes                                  43%
                             b     for address verification and correction                            33%
                      5      Mailing lists (compiled internally by the Post)                          33%
                      6      Mailing list brokerage                                                   10%
                      7      Mapping and profiling capabilities for unaddressed DM                    38%
                      8      Mail preparation (letter-shop services)                                  52%
                      9      Change of address system
                             a     for redirection of mail                                            62%
                             b     for mailing list update                                            29%
                             c     for movers' mailing lists                                          29%
                      10     Price incentives
                             a     for correct addressing                                             10%
                             b     for pre-sorting and other work-sharing                             24%
                             c     for volume                                                         60%
                      11     Delivery to post office boxes                                            71%
                      12     Home delivery                                                            71%
                      13     Business response card/envelope product (service)                        52%
                      14     Response management                                                      19%
                      15     Returns management                                                       29%
                      16     Telemarketing centre (as a DM product)                                    0%
                      17     Fulfilment                                                               29%
                      18     Direct mail centre                                                       38%
                      19     Is there a department/division dedicated to advertising mail?            57%
                      20     Quality of service control of DM items
                             a     measurement                                                        48%
                             b     delivery standard                                                  48%
                       All information provided by the postal operators in the region.
                       The accuracy of the information was not verified by the UPU.

1.4.2     Electronic network dimension (Use of IPS/IPS Light, online postal services, etc.)

1.4.2.1   Use of IPS/IPS Light

Large effort to equip The International Postal System (IPS) is an electronic system for mail processing and
LDCs with IPS Light tracking and tracing of items, developed by the UPU mainly for international mail. It
                      provides for management of postal operations through real-time monitoring of the
                      mail handling process. IPS is generally used for processing of letter mail, parcels,
                      and EMS items. For EMS, IPS is already among the basic product options.
                                                                     32

                               IPS is used in 10 countries of the region (Australia, Brunei Darussalam, Cambodia,
                               India, Indonesia, Iran (Islamic Rep.), Malaysia, Pakistan, Philippines and Thailand).
                               Of the 26 countries that do not have IPS, 17 use IPS Light, the version designed for
                               small mail flows (Afghanistan, Bangladesh, Bhutan, Fiji, Kiribati, Lao People's Dem.
                               Rep., Maldives, Mongolia, Myanmar, Nepal, Papua New Guinea, Samoa, Solomon
                               Islands, Sri Lanka, Tonga (including Niuafo'ou), Tuvalu and Vanuatu). Two countries
                               (China (People's Rep.) and Viet Nam) have developed their own track/trace systems
                               and use the PSSG software as a gateway between their system and the EDI global
                               network.

                               The IPS/IPS Light system is used for tracking EMS items in 27 countries, for tracking
                               letter-post items in 15 countries and for tracking postal parcels in 22 countries.

                               EDI message                                EMS            Letter-post items        Postal parcels
                               IPS                                         10                     5                     8
                               IPS Light                                   17                     10                   14
                               Total                                       27                     15                   22

                               In two regional QSF projects, IPS Light was extended to eight LDCs in Asia and nine
                               developing countries and LDCs in the Pacific region for processing international mail.
                               The operation of IPS Light in these countries merits close attention.

                               The Quality Control System (QCS) is a centralized UPU database containing event
                               data transmitted by EDI messages exchanged between member countries via the
                               POST*Net and GXS networks. Access to this database is provided via the Internet
                               and member countries are able to measure their performance and the quality of their
                               EDI exchanges with partners. Countries that are already members of the Telematics
                               Cooperative are able to use the QCS free of charge.

1.4.2.2      Logistics services, hybrid mail services and online postal services
                        16
Logistics services             There has been growing diversification in the choice of services provided by the
                               region's public postal operators, though at a slower pace than in the world's other
                               regions (apart from Africa). In 2007 logistics services were provided in 12 countries of
                               the Asia-Pacific region.

Member countries providing Internet access, logistics, hybrid mail and online services in 2007 (in %)

     100.0              Internet access points               Logistics services
                        Hybrid mail                          Online services
      80.0


      60.0


      40.0


      20.0


       0.0
               Africa          Latin              Asia-    Europe and CIS Arab countries Industrialized   TOTAL
                               America           Pacific                                   countries
                             and Caribbean
 Source: UPU Postal Statistics 2007, Berne, December 2008.

16
  Includes such administrative services as stock management and administrative processing of orders and such material
services as packing, dispatch, transport and delivery of mail.
                                                         33

Hybrid mail – A          The potential offered by hybrid mail services has yet to be fully realized by countries
sector with growth       in the region. According to the latest figures, domestic hybrid mail was provided in six
potential                countries and international hybrid mail in three countries. In the region, hybrid mail as
                         a proportion of all letter-post items was estimated at 0.3% or more.

Online postal            In 2007, online postal services were provided in two thirds of all Asia-Pacific
services                 countries (62% worldwide).

                         In particular, online bill payment services (e-banking) were provided in eight
                         countries. Electronic mail services were provided in 13 countries, Internet shopping
                         (e-commerce) services in six countries, and online prepayment of postage in four
                         countries. Seven countries provided online services relating to direct mail.

                         The other online services on offer included track and trace (17 countries), sale of
                         philatelic products via the Internet, electronic postage stamps and digital postmarks.

                         In 2007, almost half of the region's Posts offered their customers Internet access.

1.4.2.3   Philately

Use of WNS to            The philatelic sector represents an important activity for the Asia-Pacific region,
promote and              whose member countries generally exercise great care in preparing their philatelic
enhance the              programmes in accordance with UPU Congress recommendations and resolutions.
security of philatelic
products                 About two thirds of the region's countries participate in the WADP numbering system
                         (WNS): Afghanistan, Australia, Bangladesh, Cambodia, China (People's Rep.), Dem.
                         People's Rep. of Korea, Fiji, Hong Kong (China), India, Indonesia, Iran (Islamic Rep.),
                         Japan, Lao People's Dem. Rep., Macao (China), Maldives, Myanmar, Nauru, Nepal,
                         New Zealand, Pakistan, Singapore, Solomon Islands, Sri Lanka, Thailand and Viet
                         Nam.

                         Several countries have their own stamp printing facilities, which provide good results
                         and produce postage stamps of good quality in the three essential aspects: paper,
                         ink and adhesive.

                         The philatelic sector in the Asia-Pacific countries is growing steadily. The quality of
                         the stamp issues and the fact that very few illegal issues exist have reinforced the
                         trust of domestic and foreign collectors alike. Eleven countries – Australia, Dem.
                         People's Rep. of Korea, Fiji, Hong Kong (China), India, Iran (Islamic Rep.), Macao
                         (China), Maldives, New Zealand, Singapore, Thailand and Viet Nam (30.6% of the
                         region) – sell philatelic products via a website. The UPU website pages devoted to
                         WNS-registered stamps provide a link to these national websites.

Technology at the        Although the philatelic policy of the Asia-Pacific countries is satisfactory, it needs to
service of philately     focus more on the type of innovation seen in industrialized countries that brings with
                         it greater market share (personalized postage stamps, use of new printing
                         technologies, Internet sales, etc.).

1.4.3     Financial network dimension (postal financial services)

1.4.3.1   Postal financial services

Postal financial         Postal financial services exist in the majority of countries in the Asia-Pacific region.
services in the          The services generally provided include money orders (domestic and international,
region                   inbound or outbound or both). Savings services are also provided, some in
                         cooperation with another institution (see Annex 1, Attachment 4).

                         However, since some of the region's countries do not provide statistics on their
                         financial services, it is difficult to determine what types of service they are and
                                                         34

                         whether they are currently provided. A reminder could be sent to these countries in
                         order to obtain up-to-date information.

                         It should be noted that the new 2008 Postal Payment Services Agreement and its
                         Regulations are intended to promote not only the development of the electronic
                         postal payment services network, but also a wider range of postal financial services
                         and postal payment services. This also means that services for paper money orders
                         exchanged up to now will be replaced by electronic services. At September 2009, 14
                         of the 36 Asia-Pacific countries had yet to accede to the Postal Payment Services
                         Agreement.

Financial services       Certain large countries in the region such as China (People's Rep.) and India, whose
are a growth             mail revenues are insufficient to sustain rural postal networks, are aware the
market in the            importance of developing postal financial services to maintain revenues. For
region                   countries in this region, postal financial services can represent a good source of
                         revenue for improving populations' access to financial services and help ensure the
                         viability of the post office network.

                         Postal financial services constitute a high growth area in the region, thanks in
                         particular to the fund transfers between Asia and the Pacific and other regions like
                         the Middle East, Europe and the Americas. The percentage of postal revenues linked
                         to postal financial services is showing a marked increase in a number of countries.

Postal savings           One third of the region's countries provide postal savings services, either independ-
services                 ently or in cooperation with another institution. Some 160 countries worldwide provide
                         financial services, ranging from simple domestic and international payment services
                         and savings services to full postal banking services, sometimes offered in
                         cooperation with other financial institutions. Postal financial services worldwide have
                         more than 3 trillion USD in deposits and more than 700 million account holders (both
                         individuals and companies).

                         There have been a few success stories with savings services in the region. In China
                         (People's Rep.), the Postal Savings Bureau, since its launch in 1986, has become the
                         fifth largest deposit taker, with 65 billion USD in deposits and 189 million accounts. It
                         has also introduced ATMs and is developing life assurance, payroll services and
                         credits. In Viet Nam, since the savings service was introduced in 1999, it has
                         generated 450 million USD in deposits in 500,000 accounts. Part of the deposits is
                         used to fund development projects. Lao Post started banking services from one post
                         office in 2000. Services are now provided in all 17 provincial post offices. The savings
                         bank now has almost 10,000 customers and deposits of some 2 million USD. India,
                         Nepal and Sri Lanka have ambitious plans to further expand their postal savings
                         services.

Fund transfers           Remittances sent by migrants and temporary workers living abroad to their families
increase postal          back home have done much to raise the standard of living of some of the poorest
revenues and help        sections of society in countries in the Asia-Pacific region.
to reduce poverty
                         Total remittances worldwide exceeded 300 billion USD in 2007. If remittances sent
                         through informal channels are added, the total could be half as much again. Three of
                         the top five remittance-receiving countries in the world are in the Asia-Pacific region:
                         China (People's Rep.), India and the Philippines. Other major remittance-receiving
                         countries in the region include Bangladesh, Pakistan, Sri Lanka and Nepal. Countries
                         such as Cambodia, Lao People's Dem. Rep., Myanmar, Thailand and Samoa also
                         benefit from significant remittance flows. For many countries in the region,
                         remittances now far exceed inflows of foreign direct investments and official
                                                   17
                         development assistance.

17
     World Bank, World Development Indicators, Global Economic Prospects 2006.
                                                       35

Need to improve       Nevertheless, the postal financial services now provided and their quality are failing
quality of postal     to live up to customer expectations in the majority of the countries in the region.
financial services    Often, the postal financial services provided are not as developed as the same
                      services offered by the competition. The promotion and marketing of their postal
                      financial services are two aspects in which member countries must devote greater
                      resources and investment. One ongoing activity should be the canvassing and
                      monitoring of the market and an analysis of competitors' activities. Moreover, each
                      country could assess the possibilities of forming partnerships with businesses
                      interested in the offer of postal financial services via the postal network, the world's
                      most extensive distribution network.

                      In many countries, postal savings services remain paper-based. Such systems are
                      vulnerable to security problems. Automated systems would provide added security
                      and enable member countries to introduce other financial services.

                      Money order (cash transfer) services are still based on paper, telegraphic or fax
                      transfers. The establishment of a secure, low-cost electronic money transfer service
                      should enable workers in the Asia-Pacific region to assist their families, and help to
                      ensure that money transfers are better able to contribute to the development of the
                      local economy, for example by facilitating the development of micro-credits.

                      Expansion of the postal financial and electronic network will also lower remittance
                      transfer costs, improve transfer services and expand the choice of services. It will
                      also facilitate domestic electronic fund transfers. Procedures to combat money
                      laundering also form part of the development of the worldwide electronic postal
                      payment services network.

                      A number of the region's countries already participate in this worldwide network and
                      exchange electronic money orders using the UPU's international financial system
                      (IFS) over the following corridors (China (People's Rep.)–Australia, China (People's
                      Rep.)–Russian Federation and India–United Arab Emirates). And although the
                      volumes exchanged are still at an early stage, the development potential is
                      considerable.

                      A number of countries in the region have already received UPU IFS training on more
                      than one occasion and are now conducting tests with their exchange partners.
                      Regional workshops and meetings will continue to be organized to help these
                      countries improve their ability to provide electronic postal payment services in the
                      near future.


2        Part II – Areas for development

2.1      Main observations and areas for improvement

2.1.1    Quality of service

A.       Strategic overview

The Bucharest Congress decided that the improvement of international postal service quality was a key UPU
objective, highlighted in objective 2 of the Bucharest World Postal Strategy. Nowadays, with the strong
consumer focus on business, Posts are operating in an environment where customers decide everything. To
ensure the success of the postal business, postal operators need to ensure that they are able to provide
their customers with reliable, high quality postal services. Quality is important for postal operators, but it is
equally important for regulators and governments because, in this changing environment, they need to
ensure that a high standard and quality of postal services are provided to the public.

Recognizing the importance of this, enhancing quality of service and the efficiency of the postal network is
featured as one of the major programmes in objective 1 of the draft Nairobi Postal Strategy. In this respect,
                                                      36

the creation of reliable networks linking the globe and the development of the interoperability and
interconnection of electronic networks through the use of information technology should be given a high
priority in the strategy to enhance quality of service.

The International Bureau's efforts in the area of quality of service are based primarily on a global vision that
emphasizes the "total", "global" and "regional" concepts.

B.       Quality of service programmes

The UPU will actively support the need for the digital, social, financial and technological inclusion of
developing countries, particularly the least developed countries, in the development of their postal networks.
The development of two key areas that can help to achieve this, namely infrastructure and products and
services.

Horizontal dimension: development of infrastructure

To facilitate implementation of the global vision of achieving excellence throughout the worldwide network,
there are a number of issues which require concerted effort in the area of infrastructure development.

Compliance with information technology

The world is experiencing a widening digital divide. To narrow that gap, it will be necessary for Posts to
make a concerted effort to support and improve the physical postal network by applying information
technology in a number of areas. Actions that are required include the following:
–        To facilitate control and performance measurement, we need to ensure that all postal operators are
         equipped with systems that can provide a full range of tracking information for all trackable
         products and services. The Postal Technology Centre (PTC) provides the IPS and IPS Light
         applications to assist postal administrations in this regard.
–        With increasing demand for advanced electronic customs manifesting, modernizing the customs
         area by introducing the electronic transfer of customs manifest information between Posts and
         Customs has become a pressing issue.
–        There is also a need to improve air transport. We depend on airlines to convey our international
         products (letters, parcels and EMS). In this context, it is necessary to increase the exchange of EDI
         messages between Posts and airlines.

Development of standards

Standardization is a major challenge in the effort to ensure the interconnection and interoperability of
networks and services. To facilitate the interconnection of the various quality of service measurement
systems, the UPU will continue to develop and refine its own standards in this area. The actions to be taken
should cover the establishment of not only technical standards for such areas as EDI messaging, but also
more business and operational standards and procedures. This work will be carried out through an open
approach to the other organizations which set worldwide standards.

Management structure

To help members establish and develop a good quality management structure in the organization, the UPU
has developed a certification process, including the UPU quality management certification programme.

Certification activities in the quality management field have led to significant quality of service improvements
in the global postal network. The continuation of this project in the 2009–2012 cycle should serve to further
raise levels of awareness and motivation among postal businesses regarding the continuous improvement of
service quality. To this end, the certification methodology will be continually updated to reflect the changing
needs of postal administrations and the new challenges facing the sector.
                                                     37

Security

Security plays a key role in ensuring the quality of service provided by postal operators. Through the efforts
of the Postal Security Action Group, the UPU coordinates global initiatives to ensure the security of the
postal sector and promote customer confidence in the Post. These global initiatives include the design and
implementation of the eMARIA software application to track mail loss and irregularities, capacity-building
training and security audits at international transit hubs. Increased focus will be required to take steps to
enhance security arrangements, ranging from staff/asset protection to prevention of transactions involving
illegal items, including the transmission of counterfeit goods through the post.

Addressing, an effective socio-economic tool for improving quality of service

The UPU will continue to assist member countries to develop postcode and addressing systems in order to
enhance operational efficiency. The objectives here are to extend postcode and addressing systems as
basic postal and social requirement, reduce undeliverable mail and increase customer satisfaction.

Vertical dimension: development of products and services

As regards the development of products and services, the focus of the International Bureau on quality of
service should shift from the current product-based approach to one that embraces the full range of letter,
parcels and EMS products. The objective should be to provide support and tools for all products (track and
trace systems, postcode and addressing systems, UPU standards, measurement tools and performance
reports) to enable postal administrations to improve and enhance quality of service across the entire range
of products.

The main objective of the Quality of Service Programme for 2009–2012 is to bring about measurable and
lasting improvement in quality of service for the various postal products such as ordinary mail, parcels and
EMS. Recognizing the considerable achievements of the EMS Cooperative in measuring service quality
based on validated delivery standards, greater focus will be placed on establishing regional or validated
delivery standards for other products and monitoring compliance with them during the period in question.
The Quality of Service Programme for 2009–2012 will be divided into the projects described below. Its
implementation will be overseen by the POC and its bodies. The POC decided to update the instructions for
implementation of the programme. The areas of focus for the various products should include:

Letters
–          Enhancement of product and service features for all categories of items (small packets, express,
           registered items and insured items).
–          Performance measurement systems should meet the requirements of different stakeholders and
           include end-to-end performance measurement, destination performance measurement, diagnostic
           measurement and tailor-made measurement for large customers.
–          Stronger focus on destination performance measurement through implementation of the Global
           Monitoring System to meet pay-for-performance requirements and serve as a key driver for quality
           of service improvement.
–          Development of quality of performance measurement system based on live data for registered
           items and insured items.
–          Greater cooperation and interaction between the UPU and stakeholders.

Parcels
–          Continuous enhancement of product and service features.
–          Performance measurement system based on live tracking data to run continuously.
–          Stronger focus on move from bonus system based product and service features bonus system to a
           bonus system linked to destination performance (pay-for-performance).
–          Greater interaction between the UPU and stakeholders.
                                                      38

EMS
–        Continuous enhancement of product and service features.
–        Performance measurement system based on live tracking data to run continuously.
–        Further strengthening of pay-for-performance arrangements.
–        Greater interaction with relevant UPU groups.

2.1.2    Financial services

A.       Remittances and migrant workers

As a UN specialized agency, the UPU is a key player in global efforts to implement the Millennium
Development Goals, as set forth in United Nations General Assembly resolutions A/RES/59/220 (2004) and
A/RES/60/1 (2005). These resolutions are aimed at reducing poverty and the digital divide, and reaffirm the
need to adopt policies and take measures to reduce the cost of transferring migrant workers' remittances to
developing countries; they reinforce the efforts of governments and stakeholders in this regard.

Ways of facilitating the transfer of remittances between migrant workers and their families have become the
subject of discussion at an increasingly larger number of international conferences and seminars, where the
close involvement of the UPU and its extensive postal network is being sought. In this regard, the important
role of the UPU was recognized and underscored at the World Summit on the Information Society (WSIS),
held in Tunisia in November 2005. Moreover, at the UPU's November 2006 Dubai Strategy Conference, the
African Union, the International Organization for Migration (IOM) and the World Trade Organization (WTO)
openly expressed their firm support for UPU actions in favour of facilitating electronic postal money transfers.
It was acknowledged that "the UPU has taken a step in the right direction by developing a worldwide network
for electronic fund transfers that connects postal operators in all its member countries, facilitates
interconnection with other networks and provides citizens with access to postal and non-postal financial
services".

Indeed, the number of international migrants has risen from 75 million to 200 million in the past 30 years.
According to the IOM, the sums transferred from abroad by migrants each year greatly exceed the amount of
foreign development aid in the developing countries.

According to the latest reports published in 2006 by IFAD (International Fund for Agriculture and
Development) and the World Bank, no less than 301 billion USD in officially recorded remittances were sent
to developing countries, by means of more than 1.5 billion separate financial transactions. Below is
information for certain regions on officially recorded remittances:
–        Latin America and Caribbean:            68.062 billion USD.
–        Asia and Pacific:                     113.946 billion USD.
–        Europe:                                 50.805 billion USD.
–        Near East:                              29.678 billion USD.
–        Africa:                                 38.895 billion USD.

Furthermore, according to an IFAD report, approximately 50% of money transfers worldwide passed through
informal channels. The existence of such channels is linked to the high costs associated with international
money transfers and the difficult access to these services. The commissions applied to these transactions
can represent 20% or more of the amount sent. With an average sum of 200 USD per international
transaction, it is important that users benefit from the best possible service. The UPU is offering a solution,
based on its member countries' vast experience in this area and the exceptional presence of the postal
network in the world's rural and poor areas. Access to postal payment services is expected to help bring
these transactions back into the formal economy, reduce the risks and cost of these services for users and
discourage the parallel networks more likely to be used for money laundering and the funding of terrorist
activities.

The Asia-Pacific region is targeted as one of the more popular destinations of migrants' remittances. Several
countries (Australia, Bangladesh, China (People's Rep.), India, Indonesia, Lao People's Dem. Rep.,
                                                       39

Malaysia, Pakistan, Philippines and Thailand) receive very high volumes that contribute significantly to
development. With India (27 billion USD), China (People's Rep.) (25.7 billion USD) and the Philippines (17
billion USD), among the top five countries receiving international remittances in 2007, the Asia region
represents one third of the global figure. In Asia, Bangladesh is fourth (11th overall) and Indonesia fifth (13th
overall).

B.       UPU's aims and goals for postal payment services

The UPU's vision for postal payment services is to be able to give all citizens of the world access to efficient,
reliable, secure and affordable electronic postal payment services, in line with the commitments to economic
and social development, sound governance, ethical principles and equality of rights made by the UPU as an
intergovernmental organization and UN specialized agency. The UPU helps to achieve the strategic actions
of the UN Millennium Development Goals and to combat poverty.

In this regard, one of the functions of the UPU, as set forth in the Preamble to the new Postal Payment
Services Agreement, is to "implement a secure and accessible payment service adapted to the greatest
number of users on the basis of systems ensuring the interoperability of designated operators' networks". It
is the role of the UPU to establish industry standards and regulations and promote technical cooperation
among its members in the field of operations and new technologies. The UPU also aims to provide
developing countries with technical assistance to develop their payment services and strengthen the UPU
worldwide network, and to ensure that each component is viable, efficient and secure.

The new electronic payment network will be established by transforming the network of traditional
international paper and telegraphic money order products, founded in 1878, into a worldwide electronic
postal payment network making optimum use of new technologies. A resolution by the 2007 CA invited all
UPU member countries to adopt electronic money orders.

The key players helping to develop an electronic payment network are the member countries and designated
postal operators. Member countries, particularly the developing countries, will need to modernize their
infrastructure.

The Nairobi Postal Strategy (NPS) recognizes the need to modernize postal payment services. The action
plan for these services is directly linked to several NPS programmes and provides details on the related
activities in support of NPS implementation.

The strategic actions to develop postal financial services are based on the idea that the modernization and
development of the UPU worldwide electronic payments network by means of new technologies are
important to all member countries, particularly the signatories of the Postal Payment Services Agreement,
and that the activities undertaken by the Union and its bodies in this field have to be considered as an
integral part of the UPU's strategy.

An important prerequisite for developing electronic money transfers is adhesion to the Postal Payment
Services Agreement (2008 Geneva). The Agreement has already been signed by Bangladesh, Bhutan,
Brunei, Cambodia, China (People's Rep.), India, Indonesia, Iran (Islamic Rep.), Japan, Korea (Rep.), Nepal,
Malaysia, Mongolia, Pakistan, Philippines, Singapore, Sri Lanka, Thailand, Tonga and Viet Nam.

The countries (mostly among the Pacific Islands) that should be urged to sign the agreement are
Afghanistan, Australia, Fiji, Kiribati, Lao People's Dem. Rep., Maldives, Myanmar, Nauru, New Zealand,
Papua New Guinea, Samoa, Solomon Islands, Tuvalu, and Vanuatu.

The development of postal financial services and electronic money transfers has been identified as a priority
for this region.
                                                       40

C.        Description of the three technical solutions available (IFS, IFS Light and STEFI)

Three software applications are available to countries that join the UPU's IFS network. All three, briefly
described below, make it possible to process the four types of postal payments (cash-cash, cash-account,
account-cash and account-account) with two speeds of treatment (ordinary or urgent).
–         STEFI is the "IFS gateway". It is designed to connect the designated operator's existing postal
          payment system to the UPU IFS network. When using STEFI, the designated operator continues to
          use its own system for processing postal payments. STEFI takes care of the secured exchanges of
          electronic information with other network members.
–         IFS is the "integrated solution". It provides all the functionalities available via a web interface for
          processing postal payments end to end. There is no need for additional software. Nevertheless, it
          is easy to interface IFS with existing applications for the externalization of certain processes
          (linking to a counter automation system or a corporate accounting system). IFS embeds STEFI
          functionalities for the secure exchanges of electronic information with other network members.
–         IFS Light is the "turnkey solution". It is designed specifically for designated operators with low
          volumes and/or limited IT infrastructure. With IFS Light, all IFS functionalities are available through
          the secured Internet. The designated operator needs only a computer connected to the Internet
          and the UPU Postal Technology Centre takes care of the rest (hosting of data and transmission to
          other network members). When volumes grow or the IT infrastructure develops, a switchover to
          STEFI or IFS can be arranged.

The three applications are fully compatible, meaning that a postal operator using STEFI can exchange
seamlessly with other members equipped with either STEFI, IFS or IFS Light. Moreover, when using one of
the three software programs, the designated operator has free access to the Quality Control System (QCS),
which provides near real-time information on the flow of electronic messages exchanged between the
designated operator and its partner. With QCS, the designated operator can extract technical and
operational measurements, including end-to-end payment performance (payment speed). QCS information
is available online via a website or, alternatively, reports can be received automatically by e-mail as part of a
subscription.

In the past several years, the region has benefited from a series of workshops mainly held in Bangkok at the
APPU Centre, as well as in India, Malaysia and the Philippines. The UPU has organized various workshops
and France has provided additional funding and expertise for the creation of an ASEAN regional IFS
network.

IFS users in Asia-Pacific region are Australia, China (People's Rep.) and India.

The establishment of corridors between countries in the region is being encouraged, as is currently the case
for the exchanges recently launched between Australia and China (People's Rep.). Corridors with other
regions are being developed between India and the United Arab Emirates and China (People's Rep.) and
Russian Federation.

Bhutan, Cambodia, Indonesia, Korea (Rep.), Lao People's Dem. Rep., Malaysia, Maldives, Myanmar, Nepal,
Philippines, Sri Lanka and Viet Nam are currently testing or planning to use IFS.

2.2        Priorities for 2009–2012 cycle and areas for action

Identifying           Developing and improving postal services in the Asia-Pacific region calls for effective,
priorities for        coordinated action by the various players: postal operators, governments of member
2009–2012             countries, the Asian–Pacific Postal Union (APPU) and the UPU. Certain international
                      organizations with an interest in postal development in the region will also be involved.

                      The postal development plan for the Asia-Pacific region is based on a pragmatic
                      approach, involving the definition of precise objectives and the setting of priorities and
                      taking account of the financial resources available.
                                                       41

2.2.1    Priority No. 1 – Improve quality of service at all levels

The following diagram shows the correlation between the horizontal dimension (development of
infrastructure) and the vertical dimension (development of products and services).

              Letters                                Parcels                               EMS




               Products                               Products                           Products
                 and                                    and                                and
               services                               services                           services




              Performance                          Performance                         Performance
               evaluation                           evaluation                          evaluation
                systems                              systems                             systems




               Pay-for-                                  Pay-for-                         Pay-for-
             performance                               performance                      performance
               system                                    system                           system




                                       Compliance with technology


                                       Development of standards

                                          Management structure


                                             Postal security


            Addressing, an effective soci-economic tool for improving quality of service


This postal development plan for the Asia-Pacific region is a tool covering all vertical activities (development
of products and services) and horizontal activities (development of infrastructures).

To enhance quality of service of the international postal network, the following approach will be adopted at
regional level:
–        To use the key individual forums for the different products/services (letters, parcels and EMS) to
         discuss and resolve issues.
–        To ensure effective synergy of efforts with the cross-functional areas of working forums, namely,
         telematics, standards, customs, airlines, security, postcodes/addressing.
                                                      42

2.2.1.1   Quality of service in the letter post

In 2007 and 2008, 23 of the region's countries (about 63.9% of countries) took part in UPU continuous
testing (see Annex 3). The region's achievement rate vis-è-vis the worldwide standard (J+5) was 63.7%,
while the worldwide achievement rate was 54.7%.


                                                                                    2006     2007     2008

 Percentage of items delivered worldwide according to J+5 standard                   57.8     57.1        54.7
 Percentage of items delivered in Asia-Pacific region according to J+5 standard      73.1     68.7        63.7

2.2.1.1.1 Objectives for 2009–2012

The 2009–2012 objective of the Quality of Service Programme for letter-post products is to support the
development and improvement of the postal network through the development of infrastructure and products
and services.

In the case of infrastructural development, the main focus will be on:
–         implementing information technology such as tracking and EDI exchange for all trackable products
          and services;
–         promoting advanced electronic customs manifesting between Posts and Customs;
–         increasing EDI exchanges between Posts and airlines;
–         developing standards to ensure interconnection and interoperability of networks and services;
–         developing an effective quality management structure in postal organizations;
–         enhancing postal security;
–         developing postcode and addressing systems to enhance operational efficiency.

The development of products and services is aimed at helping UPU member countries and to give them the
tools needed for all letter-post products, such as track and trace systems, quality measurement tools and
performance reports.

2.2.1.1.2 Main activities for 2009–2012

Activities relating to the following areas will be undertaken to achieve the Quality of Service Programme
objectives:

Key performance indicators (KPIs)

Key performance indicators for all letter-post products will be developed and closely monitored. The
information gathered will be distributed to help designated operators (DOs) to effectively deal with
challenges they are facing and improve quality of service.

Quality of service performance report cards

Comprehensive service performance report cards will be designed and periodically published. The report
cards are an important tool that enables DOs to take appropriate measures to improve mail delivery
performance and the quality of data transmission for all classes of letter mail.

UPU quality management certification system

The UPU Quality Management Certification System is designed to evaluate the extent to which quality
management processes are applied in postal enterprises. Efforts will be made to upgrade the certification
methodology and organize certification assessments and award certificates to DOs that have achieved a
sufficient degree of success.
                                                      43

Interaction with other bodies

Given that that quality of service improvement requires close cooperation with groups working in key areas
(telematics, standards, Customs, relations with airlines, security, postcode/addressing), cooperation with
these bodies will be strengthened to ensure better coordination and achieve synergies.

Regional approach

A sustainable and comprehensive approach is used to implement regional projects that will assist DOs to
build capacities and develop expertise. Two projects are currently under way in Asia-Pacific region involving
19 DOs (10 in Asia and nine in the Pacific Islands), with a view to implementing more such projects in the
region.

Improving the provision of information

To enhance the international postal network and facilitate postal operations, DOs, Restricted Unions, UPU
bodies and customers will be given relevant information about quality of service (information on quality
achieved, quality expectations and major disruptions to the world postal network, as well as information on
request).

Enhancement of product and service features

The product and service features of recorded and non-recorded letter mail will be reviewed and enhanced to
enable better positioning of letter products (including registered items, insured items and small packets) in
the e-commerce environment. This includes the use of standard UPU barcodes, the introduction of systems
to provide track and trace information, the exchange of data events for all classes of letter-mail products and
the publication of performance data.

Quality measurement of non-recorded letter-post items

UPU continuous testing, which measures the end-to-end performance of international priority/airmail letter-
post items by means of internal and external panellists who record the dates of posting and delivery of test
items, will continue.

Implementation of the UPU Global Monitoring System

The UPU Global Monitoring System (GMS), using state-of-the-art technology, has been developed to
measure the performance of destination countries, which will be used to calculate terminal dues for the
purpose of improving quality of service.

Following a UPU open tender procedure ending in March 2009. Aida Centre of Spain and Quotas of
Germany were selected as suppliers for the GMS project, the first providing the system's RFID Infrastructure
and the second responsible for panel management and the production of test letters. Passive RFID
technology was selected for the GMS as the most cost-effective solution. The pilot phase involving 21
countries (including four APPU countries (India, Korea (Rep.), Malaysia and Singapore) was launched in
April 2009.

The final set-up arrangements have been completed. The pilot's running phase, using live test items, began
on 3 August 2009 and will continue until the end of the year. Implementation of the GMS will begin in 2010
with the 21 pilot members and another 30 members expected to join by that time.

The International Bureau is now working on the project's next phase. Invitations have been sent to
designated operators to participate in the GMS implementation phase from January 2010 to December
2011. Participation in the GMS is open to all designated operators. More APPU designated operators are
expected to join the GMS between 2010 and 2012.

Quality measurement of registered letters and insured letters
                                                      44

This activity involves promoting the use of barcodes and mail tracking in the registered and insured services
and preparing performance reports for registered items and insured items based on live tracking data. These
performance measurement reports issued to DOs are expected will facilitate measures aimed at improving
delivery performance.

Internet-based inquiry system for recorded letter-post items

This activity involves the development and implementation of an Internet-based inquiry system (IBIS) for
registered letters and insured letters, similar to the systems for EMS and parcels. Such a system is expected
to expedite processing, reduce the cost for handling customer inquiries and enhance customer satisfaction.

2.2.1.2   Quality of service for postal parcels

More than 70% of countries use a tracking system for parcels and exchange data with their partners (see
Annex 3), compared with 61% at the start of the previous cycle.

At the end of 2008, three countries in the region (Myanmar, Nauru and Dem. People's Rep. of Korea) were
still not using barcodes on their outward parcels, even though the use of barcodes on such parcels has been
mandatory since 1 June 2005. Myanmar has been using barcodes and transmitting EDI data for parcels
since early 2009.


                                                                    2006 (DOs)     2007 (DOs)    2008 (DOs)

 Barcodes affixed to postal parcels                                          19             25             35
 Transmission of EDI messages for parcels                                      9            15             23
 Common Internet-based inquiry system (IBIS)                                   2            13             19

2.2.1.2.1 Objectives for 2009–2012

For the 38 designated operators in the Asia-Pacific region, the quality of service objectives for parcel post
will be to expedite the adoption of the minimum specifications for parcels as they are further enhanced by
the POC, and to support the monitoring of improvement in the quality of data exchanged between postal
partners. The focus will be on:
–         Maintaining the momentum in implementing and measuring track and trace and the internet-based
          inquiry system (IBIS) standardized customer response procedures and targets.
–         Further reviewing the delivery payment system to provide incentives for improving quality of service
          through the introduction of bonuses based on the achievement of targets. Such targets already
          appear in the UPU Regulations and will be implemented as early as 1 January 2010:
          •     the timely exchange of delivery EDI events (an achieved target of 90% of H/I over D
                exchange of delivery data for items that have been scanned at the office of exchange of
                arrival (D event) will enable a 5% bonus);
          •     designated operators will need to meet defined targets for on-time responses to customer
                inquiries (95% on-time response to inquiries when using the Internet-based inquiry system
                or 90% if the Post using IBIS does not yet have track and trace).
–         Increasing the number of messages exchanged between partners to enhance the tracking of
          parcels through the transmission pipeline from country of origin to country of destination (including
          transit countries).
–         Examining ways to simplify and speed up existing customs clearance procedures.
–         Enhancing product definition and defining minimum product attributes and positioning in
          coordination with the EMS Cooperative.
–         Examining and implementing options for initiating audits to diagnose operational problems and
          recommend solutions.
                                                       45

–         Developing a validation process for delivery standards for the purpose of measuring performance
          against validated delivery standards.

The objective for product development is to introduce add-on services to support market growth for improved
parcels service and increase customer satisfaction.

2.2.1.2.2 Main activities for 2009–2012

To facilitate the achievement of the quality of service objectives for parcels, the following activities linked to
service quality improvements for parcels for the region are considered essential:
–         Regional training workshops to:
          •      improve performance in capturing and transmitting outbound and inbound data on time;
          •      promote the use of IBIS for handling customer inquiries on time;
          •      encourage operational best practices.
–         Diagnostic evaluation of individual countries in the region that do not perform well or whose
          performance is not consistent.
–         Quality measurement of responses to parcel inquiries
–         Further developing and monitoring the key performance indicators for parcels and communicating
          them to individual countries, regional forums and Restricted Unions.

This regional approach for parcels is intended to be an integral and coordinated component of the overall
regional approach developed for letters.

2.2.1.3   EMS quality of service

The Asia-Pacific region has 28 member countries in the EMS Cooperative. Bangladesh and Brunei
Darussalam joined the Cooperative in 2009 (see Annex 3). The EMS Unit is in contact with Cambodia, Nepal
and Tonga discussing Cooperative membership. It is expected to contact the seven remaining EMS
operators in the region in order to have the eight non-members (Cambodia, Dem. People's Rep. of Korea,
Nepal, Nauru, Timor Leste (Dem. Rep.), Tonga, Tuvalu and Samoa) join the Cooperative.

Achievements regarding membership requirements

Indicators                                                                       2007         2008     Variation

Full track and trace                                                             11/24       21/29          +10

Provision of written proof of delivery                                           23/24       27/29            +4

Use of Rugby system with all partners                                            22/24       27/29            +5

Participation in pay-for-performance plan                                         1/24       11/29          +10


Of the 29 EMS Cooperative members from the region, 11 members fulfil all the membership requirements.
Ten members meet all the requirements except Pay-for-performance and eight do not fulfil two membership
requirements (including full track and trace and Pay-for-performance). However, all members from the region
provide written proof of delivery and only two members (Solomon Islands and Brunei Darussalam) do not
use the standardized system for handling EMS international inquiries. Bangladesh and Myanmar were
trained to use the system, which went into production in February 2009.
                                                       46

Achievements regarding performance standards

Key performance indicators (KPIs)                                             2007        2008    Variation
Provision of delivery events for at least 95% of acceptance events         77.42%      86.38%       11.57%
Provision of acceptance events for at least 98% of dispatch events         93.12%      90.13%       -3.21%
On-time delivery of at least 95% of inbound items according to             61.82%      64.66%        4.59%
validated delivery standards
Provision of at least 95% of delivery events on time                       72.44%      73.54%        1.52%
Response to at least 95% of Rugby inquires on time                         90.38%      92.60%        2.46%

Five EMS operators achieved the performance standards for all the KPIs (Australia, Hong Kong (China),
Japan, Korea (Rep.) and Macao (China)), while four achieved the expected level of performance for four
KPIs. Fifteen operators are performing at 100% for on-time customer service response. Macao (China),
Hong Kong (China), Korea (Rep.), Singapore, Japan and Australia achieved on-time delivery for more than
95% of their inbound EMS items. On the other hand, 11 EMS operators from the region are performing
under 80% for at least one KPI.

Implementation of activities under the pay-for-performance project funded by Japan Post and focusing
primarily on the five ASEAN countries not yet participating in pay-for-performance plan (Indonesia, Malaysia,
Philippines, Thailand and Vietnam) contributed to the improvement of the overall performances in the region.
Only Indonesia and the Philippines need further support and monitoring in order to improve. As a result,
Malaysia, Thailand and Vietnam have already implemented the pay-for-performance plan by participating
with at least one partner. Indonesia asked to implement the plan with a considerably reduced threshold. The
Philippines do not yet have full track and trace and need to have its standards validated by the end of
February 2009. Indonesia and the Philippines benefited from performance reviews and they are expected to
join the pay-for-performance plan after achieving the required actions. Other non-participating countries
benefited from the activities of the project, one of which, Macao (China), eventually joined the plan.

Besides the APPU EMS courses in 2006, 2007 and 2008, as well as the implementation of EMS activities
under the regional development plan for 2008, another factor contributing to the improvement seen in the
region was the monitoring and follow-up of actions from the first two workshops organized under the UPU–
APPU quality of service regional project, which included an EMS report analysis session for the
10 participating countries (Bangladesh, Bhutan, India, Indonesia, Malaysia, Maldives, Mongolia, Lao
People's Dem. Rep., Sri Lanka and Thailand). The EMS Unit has provided the recent EMS reports to the
country project managers, through the regional project manager, for the third UPU–APPU quality of service
regional workshop, held from 23 to 27 February 2009 in Thimphu (Bhutan). The EMS workshop held in
Jakarta (Indonesia) from 25 to 29 May 2009, provided a good opportunity to make measurable
improvements in the performances of the participating countries.

2.2.1.3.1 Objectives for 2009–2012

In 2009–2012, the EMS Cooperative will continue the work to strengthen the EMS network. In 2012, it will
offer EMS customers a recognized high quality network that meets their growing needs and demands (as
indicated in the mission) and goes beyond the focus of on-time delivery.

Reliability

Customers expect EMS to provide a reliable service in the key areas of delivery, tracking and
responsiveness. Performance expected is to be as follows:
–         On-time delivery on-time                               95%
–         Tracking of delivery                                   98%
–         Tracking of inbound items                              98%
–         On-time transmission of tracking data                  98%
–         On-time quality customer service response              98%
                                                      47

To achieve this global level of performance, each operator must improve its own performance by committing
to an incremental improvement: each year's performance should be better than the previous year's for all
five key performance indicators.

The Cooperative has been measuring and reporting delivery performance and also measuring and reporting
on the provision of tracking information. Customers care about the total elapsed time, from collection to
delivery and the time taken in between (including the time in transit and in customs) is important information
for management of the entire processing pipeline.

Speed of service

There will be continual efforts to maintain EMS as the quickest postal service, not only for end-to-end
delivery, but also for the transmission of tracking events and customer service response.

Costs and prices

It has long been accepted that EMS delivery rates should be based upon the costs of providing the delivery
service and should vary only where changes in local delivery costs require it. Setting delivery rates as low as
possible gives partners the flexibility to set competitive selling prices.

Information for customers

The best possible information should be given accurately and promptly to customers, to maintain their
confidence in the network, and to our partners to enable them to serve their customers better. This measure
includes expanding the system information captured and exchanged, especially for customs and transport.
The exchange of tracking data, the provision of written proof of delivery and the use of the Rugby system are
conditions of EMS Cooperative membership which, when properly applied, enable partners to meet their
customers' demand for accurate and up-to-date information.

Growth

The increasing strength of EMS should be used to take advantage of growth opportunities such as e-
commerce, the increase in small to medium-sized businesses, regional initiatives, etc. To grow market
share, an effort is needed too ensure that the EMS brand is recognized worldwide.

2.2.1.3.2 Main activities for the period 2009–2012

The ongoing activities are the present activities being carried out in the areas of standards and
measurement, performance reporting, analysis and improvement, communications and Cooperative
administration.

To successfully help members to meet the customers' expectations, the focus on regional improvement
activities will continue, as similar opportunities and challenges emerge in the regions. The following new or
expanded improvement activities below will be undertaken to continue to improve and build upon existing
programmes and tools:
−        Organize performance improvement training at least once a year in regions where members are
         not achieving the required levels of performance.
−        Organize performance reviews for operators showing the poorest performance throughout the
         operational pipeline.
−        Continue to work with the Restricted Unions on organizing performance improvement activities.
−        Continue to work with the International Bureau's Development Cooperation Directorate (DCDEV)
         on EMS regional development plans.
−        Enhance customer care training and provide it in regions where improvement is the most urgent.
−        Gather customer care best practices in and establish guidelines for use by members.
−        Determine attributes for service and inter-operator relationships that should be mandatory.
                                                     48

−         Define standards of responsibility for these attributes and incorporate them into appropriate EMS
          standards, agreements or Cooperative statutes.

2.2.1.4   Compliance with technology

The Postal Technology Centre (PTC) has set two priorities relating to the installation and improved use of
IPS/IPS Light and the monitoring of quality of service.

Priority 1 – Bangladesh, Myanmar and Sri Lanka

In view of their annual mail volumes in letters (registered/insured), parcels and EMS, Bangladesh, Myanmar,
and Sri Lanka would be first-priority target countries for efforts aimed at encouraging them to improve the
exchange of track and trace information.

Although these countries now use IPS Light, IPS would be much better suited to their large mail volumes.
However, a minimum requirement for IPS is to have skilled system and network administrators on site to
maintain the system.

As a first step, PTC must determine whether the countries concerned have a sufficient number of these
system and network administrators. If so, the PTC could conduct an IPS site survey. If not, the countries
should continue using IPS Light, with the PTC or RTC conducting a training mission to improve their skills in
the proper use of IPS Light.

–         Bangladesh
          In 2007, the country's outbound mail volume (registered or insured letters, parcels and EMS) was
          888,287 items. Bangladesh currently exchanges track and trace information only for EMS (IPS
          Light), though clearly, customers also need track and trace information for parcels and letters.
          In view of its large mail volumes and expected volume growth in the near future, migrating IPS
          Light to IPS would be the best solution for Bangladesh if it is to meet customers' needs for track
          and trace information for parcels and letters.

–         Myanmar and Sri Lanka
          In 2007, outbound mail volumes (registered or insured letters, parcels and EMS) for Myanmar were
          424,487 items and 886,952 items for Sri Lanka. Both Myanmar and Sri Lanka currently exchange
          track and trace information for EMS and parcels.
          Using IPS would be the best solution to enable these two countries to exchange track and trace
          information for letters.

Priority 2 – Nauru, Timor-Leste (Dem. Rep.)

Nauru and Timor-Leste do not currently exchange any track and trace information. To enhance the
exchange of track and trace information worldwide, an IPS Light training mission to these countries is
needed.

2.2.1.5   Development of standards

Interoperability is one of the three key elements of the Nairobi Postal Strategy (NPS), and since standards
are essential to interoperability, standards represent an essential component of the NPS.

All UPU member countries benefit from standards to varying degrees. The widespread adoption of IPS, for
example, which relies on several key UPU standards, demonstrates how the benefits of standardization
trickle down to a majority of member countries. Standard S10, covering 13-character identifiers for EMS,
insured, registered, and recorded delivery items, is also widely used. Standards now increasingly appear in
the regulations. As the failure to comply with these regulations begins to have financial consequences
(already seen today), the pressure on countries to adopt certain core standards will increase.
                                                      49

Nevertheless, it is still the industrialized countries that make the most use of standards. The acceptance of
standards by developing countries, particularly the LDCs, is not as prevalent as it could be. Many developing
countries lack the technical and organizational infrastructure necessary for efficient operations, and therefore
constitute weak links in the world postal network. Standards provide a basis for developing a sound
infrastructure, and it is believed that the "performance index" of these countries could be improved if they
were made more aware of certain core standards and trained in how to apply them.

A plan should therefore be implemented to promote standards in developing countries, utilizing all the tools
available (e-post, TRAINPOST, etc.).

2.2.1.6   Postal security

Designated operators in the region face the challenge of internal and external security threats (mail theft,
transmission of illicit drugs or dangerous items, money laundering, threats to staff, revenue and asset
losses). According to the Postal Security Group's strategic plan, the two priority areas of the current
Congress cycle are revenue protection and the development of security standards.

The International Revenue Protection and Meters Group and the Consultative Committee Revenue
Protection Group will develop a roadmap for revenue protection that will include the sharing of best
practices, regional training and the exchange of technical expertise. Training on revenue protection based on
this roadmap will be given to countries in the region.

Congress approved resolution C 23/2008 (Development of postal security standards). The Postal Security
Group is taking a two-step approach to the development of minimum security standards. The first step
involves a security certification model, developed by the PUASP; the second concerns physical and process
security standards, including a scoring matrix and checklist. The Global Mail Security Project Group will
finalize the physical and process security standards and then move to security standards for mail induction,
transport and airmail centres. This two-step approach will lay the foundation for further efforts to develop
interoperability and interconnection of national postal networks. The Postal Security Group will support the
region with the development of a security certification model.

The Postal Security Group also plans to pursue in the region the core work carried out in the past (airport
reviews, training (dangerous goods, drugs in the post) and consultants' missions). Strategies will also be
developed and shared in the areas of counterfeit and pirated items (Congress resolution C 37/2008) and
AML/CFT measures and guidelines. An airport review of Guangzhou Baiyun international airport has also
been planned for 2009.

2.2.1.7   Addressing and postcodes

Facts                 Countries in the region fall into three categories, depending on their particular
                      situation:
                      i     Countries where postcodes and addressing play an important role in postal
                            policy, where a postcode system is actively promoted and widely used
                            (Australia, Indonesia, Iran (Islamic Rep.), Japan, Korea (Rep.), Malaysia,
                            Maldives, New Zealand and Thailand).
                      ii    Countries where postcodes exist, but are not widely used, and postcode
                            databases are not sufficiently detailed and updated (Bangladesh, Bhutan,
                            Brunei Darussalam, Cambodia, China (People's Rep.), India, Lao People's
                            Dem. Rep., Mongolia, Nepal, Pakistan, Papua New Guinea, Philippines,
                            Singapore, Sri Lanka, Timor-Leste (Dem. Rep.) and Viet Nam).
                      iii   Countries where postcodes do not exist (Afghanistan, Dem People's Rep. of
                            Korea, Fiji, Kiribati, Myanmar, Nauru, Samoa, Solomon Islands, Tonga
                            (including Niuafo'ou), Tuvalu and Vanuatu).

The situation of      Bhutan and Afghanistan have actively worked on a national project to introduce a
UPU addressing        postcode system.
standards in the
region                While Bhutan is preparing to introduce its new postcode system, accompanied by a
                                                        50

                        national addressing standard, Afghanistan is still developing an overall addressing
                        strategy, including postcodes, whose structure has already been determined; an
                        addressing standard, addressing database and promotional activities have also been
                        prepared.

                        More and more countries in the region (China (People's Rep.), India, Indonesia, Iran
                        (Islamic Rep.), Malaysia and Mongolia) would like to base their addressing policy on
                        international standards, particularly those published by the UPU.

                        This work involves revising the existing standard and adapting it to meet international
                        requirements.

                        A delivery point database is a key aspect on which countries in the region already
                        with a postcode and addressing system should focus in order to improve postal
                        service quality. To improve the quality of products and services offered by Posts, it is
                        essential to be able to identify mail delivery points accurately. This is why databases
                        down to street level are an indispensable tool for efficient postal operations and direct
                        mail targeting. Only Australia, Japan, Korea (Rep.), Malaysia, Maldives, New
                        Zealand, Singapore and Thailand offer the public and businesses value-added
                        services and products on the basis of address databases.

                        Other countries like Myanmar and Sri Lanka are setting up projects to create delivery
                        point databases with a view to improving quality of service.

Countries in the        Although many Pacific region countries do not have a postcode system, postal
Pacific region          officials in the region are aware of the importance of postcodes in improving quality of
                        service. Fiji, Cook Islands, Solomon Islands, Kiribati, Papua New Guinea, Nauru,
                        Samoa, Tonga and Vanuatu have expressed a keen interest in developing such a
                        system. A feasibility study is being conducted to analyze the viability of such a
                        regional project, which, if considered viable, could be implemented during the current
                        cycle (2009–2012).

Priority No.1 –         Quality of service
Improve quality of
service at all levels   Implementation of the new approach to field support for designated operators.
(see Annex 2,
Attachment 1)           This new approach will underpin the actions to be carried out. With domestic and
                        international mail traffic steadily falling, in large part owing to services mismatched to
                        customers' needs, and despite relatively good quality of service, an action plan is
                        needed to reinforce and improve existing quality levels and restore service standards.

                        2.2.1.1   Implement a new approach for improving quality of service for all products
                                  (letter post, parcels and EMS) and establish a regional quality of service
                                  standard for letter-post items.
                        2.2.1.2   Achieve the world standard of J+5 for 80% of letter-post items in most of
                                  the region's countries by 2012 by promoting the introduction of quality
                                  management procedures.
                        2.2.1.3   Promote participation in the GMS implementation phase in 2010, including
                                  end-to-end quality measurement.
                        2.2.1.4   Promote participation in the EMS pay-for-performance plan.
                        2.2.1.5   Extend the use of IPS, IPS Light or any globally compatible mail tracking
                                  system to all countries of the region for registered letters, insured items,
                                  postal parcels and EMS.
                        2.2.1.6   Promote the use of barcodes for registered items, insured items and
                                  parcels.
                        2.2.1.7   Bring all the region's member countries into the monthly reporting system
                                  developed by the Parcels Group in 2007.
                                                        51

                      2.2.1.8   Promote the introduction of the Internet-based of inquiry system in all
                                countries in the region by 2012.
                      2.2.1.9   Actively promote the international parcels development strategy and
                                provide the assistance needed to put in place minimum specifications for
                                parcels.
                      2.2.1.10 Promote the use of postcodes and addressing standards, as well as
                               delivery point databases in the region's countries.
                      2.2.1.11 Improve overall security of international mail through group training.
                      2.2.1.12 Promote the use of UPU standards through group training.

2.2.2     Priority No. 2 – Develop financial services

                      For a good many designated postal operators, the postal financial services sector
                      represents a large share of revenues. Owing to the sharp increase in the number of
                      migrant workers and their remittances over the past 10 years, money transfers now
                      represent a strategic market segment. They are also the most important source of
                      external capital directed towards development and micro-credit projects in many
                      developing countries.

                      Several countries in the Asia-Pacific region are among the world's largest
                      beneficiaries of fund transfers, which have seen steady growth. Development of the
                      electronic postal payment network is therefore an urgent priority for the region. One
                      key objective is to open up and facilitate exchanges between the main countries that
                      issue and receive fund transfers, not only within the region but also between different
                      regions. This would serve as an encouragement and facilitate extension of the
                      network to include other countries with less traffic. Exchanges need to be established
                      at the national and regional levels.

                      Some countries in the region are already connected or in the process of connecting
                      to the UPU's International Financial System (IFS), while others use another system
                      for electronic payments. The ultimate goal is to interconnect all countries to the
                      worldwide electronic postal payment network. To ensure the optimum success of a
                      fund transfer service, it is necessary to upgrade existing infrastructure and security,
                      introduce counter automation and train counter staff, gain market intelligence,
                      promote and market payment services and train customer service staff, introduce
                      cash management, etc. Other actions envisaged include

Priority No. 2 –      2.2.2.1 Promoting the Postal Payment Services Agreement as a platform for the
Develop financial             worldwide electronic postal payment network.
services              2.2.2.2 Contributing to the development of IFS services and networks in all
(see Annex 2,                 countries, at both national and international level, and coordinating the
Attachment 2)                 creation of these services through action in the field.
                      2.2.2.3 Modernizing existing IFS services and helping countries to open further
                              exchanges with current IFS users, within the region and with other countries
                              and regions, by emphasizing corridors.
                      2.2.2.4 Providing staff with technical and commercial training in the area of IFS
                              services.

2.2.3     Areas of limited action

2.2.3.1   Human resource training

In accordance with Congress resolution C 7/2008 (Customer relations and customer service) and a
recommendation by the Asian Pacific Postal Union (APPU), training is a priority action for helping the
region's member countries develop their human resources. The UPU, in partnership with the APPC, will
                                                    52

implement training programmes whose principal aim is to develop the knowledge, skills and qualifications of
postal employees.
                                                        53

Area of action        2.2.3.1.1    Develop postal employees' knowledge and skills and enable them to
No. 1 – Human                      improve the services offered to customers
resource training
(see Annex 2,
Attachment 3)

2.2.3.2   Postal market (philately)

In accordance with Congress resolution C 36/2008 (Development of philately) and a member country's
proposal, use of the WNS represents a priority action aimed at bringing about growth in the philatelic market
and helping countries make increased use of modern philatelic techniques.

Area of action        2.2.3.2.1    Promote the use of the WNS in 31 member countries between now and
No. 2 – Postal                     2012.
market                2.2.3.2.2    Bring about growth in the postal market and help countries make
(see Annex 2,                      increased use of modern philatelic techniques involved in postage stamp
Attachment 4)                      issues and the sale of philatelic products (personalized stamps,
                                   introduction of measures to enhance security of stamp issues, Internet
                                   sales, compliance with rules of professional ethics)

2.2.3.3   Postal market (Direct mail)

In accordance with Congress resolutions C 8/2008 (Markets and marketing development. Building capacity
and capabilities in the areas of marketing and sales – assuring sound knowledge of the markets – facilitating
access to the broadest knowledge and expertise available within the industry) and C 9/2008 (Direct mail
markets development), the DMAB Business Plan for 2009–2010 was approved in November 2008. Several
activities are directed towards developing countries.

Area of action         2.2.3.3.1   Raise awareness of the importance of direct mail an important generator
No. 3 – Postal                     of postal volumes and revenues and a contributing factor in the economic
market                             development of countries, as it is an important part of the industry supply
(see Annex 2,                      chain.
Attachment 5)
                       2.2.3.3.2   Increase designated operators' and other stakeholders' knowledge of
                                   direct mail tools, techniques, uses and benefits.
                       2.2.3.3.3   Encourage the provision of specific direct mail products and services by
                                   designated operators, as well as related and supporting products and
                                   services and marketing strategies.
                       2.2.3.3.4   Encourage the use of tools to promote targeted advertising mail
                                   campaigns.
                       2.2.3.3.5   Encourage environmentally friendly direct mail practices.
                       2.2.3.3.6   Encourage dialogue between designated operators, their customers and
                                   other stakeholders in the direct mail value chain.
                       2.2.3.3.7   Encourage DMAB membership.

2.2.3.4   Postal market (Electronic postal services)

In accordance with Congress resolutions C 10/2008 (Postal market development), C 28/2008 (Development
of E-commerce in developing countries and the least developed countries) and C 33/2008 (Action plan for
electronic postal services), actions are needed to implement a special programme aimed at helping
developing countries and the least developed countries to successfully meet a number of challenges.

Area of action        2.2.3.4.1       Developing electronic postal services on both a domestic and an
No. 4 – Postal                        international scale, as a means of bringing about economic benefits and
market                                market expansion, and improving the cross-border flow of postal and
(see Annex 2,                         financial items.
Attachment 6)
                      2.2.3.4.2       Making use of ICTs to fulfil universal service obligations.
                      2.2.3.4.3       Improving knowledge of the impact of ICT and electronic services on the
                                                      54

                                   local market and developing tools to monitor volume growth and quality.
2.2.3.5   Postal market (Information and communication technologies (ICTs))

In accordance with Congress resolutions C 33/2008 (Action plan for electronic postal services), C 38/2008
(The role of the postal sector in the Information Society) and recommendation C 55/2008 (Developing closer
relations with international, regional and national organizations for practical cooperation projects in postal
sector development in the field of information and communication technology (ICT)), actions are needed for
making use of post offices as communication centres.

Area of action         2.2.3.5.1    Increasing the use of ICT for modernizing postal processes, for
No. 5 – Postal                      example, counter automation systems, automated sorting and mailing
market                              machines, computer systems for enterprise resource planning,
(see Annex 2,                       management information systems and general administration.
Attachment 7)          2.2.3.5.2    Using post offices as communication centres.
                       2.2.3.5.3    Taking account of the role played by the postal sector in e-government
                                    facilitation in many countries and its potential role in e-health and e-
                                    learning projects and policies.

2.2.3.6   Sustainable development

In accordance with Congress recommendation C 27/2008 (Initiatives for the sustainable reduction of the
negative environmental impact of the postal sector) and resolution C 34/2008 (Work on sustainable
development), pilot actions based on the experience of others are needed.

Area of action      2.2.3.6.1       Exchanging best practices on sustainable development.
No. 6 – Sustainable 2.2.3.6.2       Facilitating the exchange of information on sustainable development
development                         challenges at the local level.
(see Annex 2,
Attachment 8)       2.2.3.6.3       Identifying the actions to be carried out, taking into account the
                                    legislation, culture and resources of the countries concerned.
                      2.2.3.6.4     Putting in place pilot projects based on the experiences of others.


3         Part III – Implementation of the plan

3.1       Implementation stages

The various development priorities correspond to measures accompanying sectoral programmes (see
Annex 2, Attachments 1 to 8). The countries to be priority beneficiaries of these measures have been
identified on the basis of an analysis of the overall situation of the postal sector in the Asia-Pacific region.

In order to implement the plan, it is necessary to prepare country-specific projects for each of the activities
listed. These projects will be drawn up by the Asia-Pacific Regional Programme, in conjunction with the
various International Bureau programmes involved, so that they are in line with the Union's Programme and
Budget. The cooperation of the Restricted Unions, Regional Project Coordinators and, of course, the
countries themselves, will also be necessary for gathering statistical and economic data and monitoring
project implementation.

3.2       Financing of the plan

The activites contained in the action plan will be financed mainly with funds under article 17 of the Union
budget (1,763,340 CHF) and national contributions from the postal authorities of the beneficiary country.
Supplementary funds corresponding to credits assigned to sectoral projects (quality of service, universal
postal service, postal financial services, Postal Technology Centre, diagnostic testing, etc.) may also be
used. Rational use of the funds made available by the QSF will also assist in project implementation. At
31 December 2008, the region had consumed 62% of QSF revenue. The total QSF capital available to
countries in the region amounts to over 15 million USD. This amount represents development potential for
projects in the quality of service field.
                                                      55

However, it will still be necessary to use the action plan to gather funding from other sources (public/private
partnerships, donor countries, UNDP, World Bank and regional development banks, etc.).

3.3      Communication plan

A communication plan needs to be put in place that is adapted to the following target audiences:
–        The various players at the International Bureau, to enable them to establish cooperative links and
         validate the plan.
–        The governments and postal operators, to increase their knowledge and secure their backing of
         the objectives and priorities defined, and their commitment to implementation of the activities
         concerned.
–        The APPU, to secure its support for the plan and ensure its cooperation for the implementation
         phase.
–        The regional organizations and international or regional financial institutions, to improve their
         knowledge and guarantee their contribution to project funding.
–        Other potential partners, especially donor countries.

An information booklet will be published to raise awareness among external partners.


Conclusion

It is clear that, in its current phase, the Postal Development Plan for the Asia-Pacific region provides a basis
for UPU action to promote postal development in the region. It provides an ideal framework for implementing
the Nairobi Postal Strategy (NPS) and promoting intra-regional cooperation.
                                                                                                                    Annex 1.Attachment 1

     Countries                          Area    Population     Total staff Total number of    Average area      Average       Operating
                                       (km²)   (in millions)               permanent post          covered    number of           results
                                                                                    offices          (km²)   inhabitants       (in SDR)
                                                                                                                 served
1    Afghanistan                     652,090       27,145         1,595               460         1,417.59        59.01            ND
2    Australia                     7,741,220       20,743        34,524             3,815         2,029.15          5.44   314,030,683
3    Bangladesh                      143,998      158,665        39,895             9,886            14.57        16.05    -12,823,763
4    Bhutan                           47,000        0.658           206                90           522.22          7.32       172,950
5    Brunei Darussalam                 5,765        0.390           369                34           169.56        11.47            ND
6    Cambodia                        181,035       14,444           817                79         2,291.58       182.83            ND
7    China (People's Rep.)         9,596,961    1,328,630       788,056            59,886           160.25        22.19            ND
8    Dem. People's Rep. of Korea     120,538
9    Fiji                             18,274        0.839           437                81          225.61         10.35         547,101
10   India                         3,287,263    1,169,016       500,883           155,204           21.18          7.53    -202,132,100
11   Indonesia                     1,904,569      231,627        23,918            19,922           95.60         11.63             ND
12   Iran (Islamic Rep.)           1,648,195       71,208        17,313            13,147          125.37          5.42             ND




                                                                                                                                            56
13   Japan                           377,873      127,967        97,600            24,064           15.70          5.32     269,419,928
14   Kiribati (2003)                     726        0.089            30                25           29.04          3.56             ND
15   Korea (Rep.)                     99,538       48,224        43,270             3,669           27.13         13.14     170,350,842
16   Lao People's Dem. Rep.          236,800        5,859           519               327          724.16         17.92          95,047
17   Malaysia                        329,847       26,572        15,640               995          331.51         26.71      19,336,281
18   Maldives                            298        0.306           132               216            1.38          1.41         301,979
19   Mongolia                      1,566,500        2,629           913               ND              ND            ND          438,716
20   Myanmar                         676,578       48,798         4,194             1,363          496.39         35.80       2,406,770
21   Nauru                                21
22   Nepal (2004)                    147,181       26,554         20,652              ND               ND           ND              ND
23   New Zealand                     270,534        4,179          8,897              986           274.38         4.24      49,451,438
24   Pakistan                        796,095      163,902         47,524           12,339            64.52        13.28       1,591,830
25   Papua New Guinea                462,840        6,331            522               70         6,612.00        90.44         513,049
26   Philippines                     300,000       87,960         12,692            2,068           145.07        42.53         241,921
27   Samoa (2005)                      2,831        0.184             21               36            78.64         5.11         134,468
28   Singapore (2006)                    683        4,382          3,508              471             1.45         9.30      57,189,979
29    Solomon Islands                               28,896          0.496            89                24       1,204.00        20.65            ND
      Countries                                       Area    Population     Total staff Total number of    Average area      Average     Operating
                                                     (km²)   (in millions)               permanent post          covered    number of         results
                                                                                                  offices          (km²)   inhabitants     (in SDR)
                                                                                                                               served
30    Sri Lanka                                    65,610         19,299        22,531             5,200           12.62          3.71   -13,351,460
31    Thailand                                    513,115         63,884        20,910             4,563          112.45        14.00            ND
32    Timor-Leste (Dem. Rep.)                      14,874          1,155            29                 4        3,718.50       288.69         41,822
33    Tonga (including Niuafo'ou)                     650
34    Tuvalu                                           26
35    Vanuatu                                      12,189         0.226             51               60          203.15          3.77        491,724
36    Viet Nam (2005)                             331,689        85,029         45,483           17,061           19.44          4.98    -35,064,809
      Total                                    31,582,302     3,744,205      1,753,220          336,145

Source: UPU Postal Statistics 2007, Berne, December 2008.




                                                                                                                                                        57
                                                   58

                                                                              Annex 1.Attachment 2


Status of the universal postal service

     Country                             Defined        Not defined    Provide         No data
                                                                      obligation
1    Afghanistan                                                          X
2    Australia                             X
3    Bangladesh                            X
4    Bhutan                                                                               X
5    Brunei Darussalam                                      X
6    Cambodia                              X
7    China (People's Rep.)                                                X
8    Dem. People's Rep. of Korea                                                          X
9    Fiji                                                                                 X
10   India                                 X
11   Indonesia                             X
12   Iran (Islamic Rep.)                   X
13   Japan                                 X
14   Kiribati                                                                             X
15   Korea (Rep.)                          X
16   Lao People's Dem. Rep.                                 X
17   Malaysia                              X
18   Maldives                                               X
19   Mongolia                                                             X
20   Myanmar                               X
21   Nauru                                                                                X
22   Nepal                                                  X
23   New Zealand                           X
24   Pakistan                              X
25   Papua New Guinea                                                                     X
26   Philippines                           X
27   Samoa                                                                                X
28   Singapore                             X
29   Solomon Islands                                                                      X
30   Sri Lanka                                              X
31   Thailand                              X
32   Timor-Leste (Dem. Rep.)                                                              X
33   Tonga (including Niuafo'ou)                                          X
34   Tuvalu                                                                               X
35   Vanuatu                               X
36   Viet Nam                              X
                                                    59

                                                                                      Annex 1.Attachment 3


Legal status of public postal operator

Member country     Government entity              Operator designated to       Independent regulator
                                                  fulfil the obligations       other than the government
                                                  arising from adherence to    entity
                                                  the UPU Convention
1 Afghanistan      Ministry of Communications     Postal administration        None
                   and Information Technology
2 Australia        Department of Broadband,       Australia Post (Australian   Australian Competition and
                   Communications, and the        Postal Corporation)          Consumer Commission
                   Digital Economy
3 Bangladesh       Ministry of Posts and          Bangladesh Post Office       None
                   Telecommunications
4 Bhutan           Ministry of Information and    Bhutan Postal                Bhutan Infocomm and
                   Communications                 Corporation Ltd              Media Authority
5 Brunei           Ministry of Communications     Brunei Postal Services       None
  Darussalam                                      Department Ministry of
                                                  Communications
6 Cambodia         Ministry of Posts and          Direction des postes         None
                   Telecommunications
                   (MPTC)
7 China            State Post Bureau              China Post Group             None
  (People's        Commerce and Economic          Hongkong Post                None
  Rep.)            Development Bureau
                   Macao Post                     Macao Post                   None
8 Dem. People's    Ministry of Posts and          Pyongyang International      None
  Rep. of Korea    Telecommunications             Post Service Center
9 Fiji             Department of                  Post Fiji Ltd                None
                   Communication, Ministry of
                   Commerce, Investment and
                   Communication
10 India           Department of Posts            Department of Posts          None
                   (Ministry of                   (Ministry of
                   Communications and             Communications and
                   Information Technology)        Information Technology)
11 Indonesia       Ministry of Communications     PT Pos Indonesia             Directorate General of
                   and Information Technology                                  Posts and
                                                                               Telecommunications
12 Iran (Islamic   Ministry of ICT (Information   Post Company of the          None
   Rep.)           and Communication              Islamic Republic of Iran
                   Technology)
13 Japan           Ministry of Internal Affairs   Japan Post Service CO.,      None
                   and Communications             Ltd
14 Kiribati        ND                             ND                           ND
15 Korea (Rep.)    Ministry of Knowledge          Korea Post                   None
                   Economy
16 Lao People's    Département des postes et      Entreprise des Postes        None
   Dem. Rep.       télécommunications             Lao
17 Malaysia        Ministry of Energy, Water      Malaysia Post                Malaysia Communications
                   and Communications,                                         and Multimedia
                   Malaysia                                                    Commission
                                                 60

Member country   Government entity             Operator designated to      Independent regulator
                                               fulfil the obligations      other than the government
                                               arising from adherence to   entity
                                               the UPU Convention
18 Maldives      Ministry of Transport and     Maldives Post Limited       None
                 Communication
19 Mongolia      Ministry of Road, Transport   Mongol Post                 Communication Regulatory
                 and Tourism                                               Committee
20 Myanmar       Ministry of                   Myanmar Posts and           None
                 Communications, Posts         Telecommunications
                 and Telegraphs
21 Nauru         ND                            ND                          ND
22 Nepal         Ministry of Information and   Postal Services             None
                 Communications                Department
23 New Zealand   Ministry of Economic          New Zealand Post            None
                 Development                   Limited
24 Pakistan      Ministry of Postal Services   Pakistan Post               None
                 Government of Pakistan
25 Papua New     Ministry of State Owned       Post PNG Ltd                Independent Competition
   Guinea        Enterprises and Information                               and Consumer
                                                                           Commission (ICCC)
26 Philippines   Commission on Information     Philippine Postal           Postal Regulation
                 and Communications            Corporation                 Committee
                 Technology (CICT)
27 Samoa         Ministry of Communication,    SAMOAPOST LIMITED           Office of the regulator
                 Information and Technology
                 (MCIT)
28 Singapore     Ministry of Information,      Department of Posts         Infocomm Development
                 Communications and the                                    Authority of Singapore
                 Arts (MICA)
29 Solomon       Ministry of Infrastructure    Solomon Islands Postal
   Islands       and Development               Corporation
                 Department of
                 Communication, Aviation
                 and Meteorology
30 Sri Lanka     Ministry of Posts and                                     None
                 Telecommunications
31 Thailand      Ministry of Information and   Thailand Post Co., Ltd      None
                 Communication Technology
32 Timor-Leste   Ministry of Infrastructure    CTL – Correios de Timor-    Authority Regulatory of
   (Dem. Rep.)                                 Leste                       Communications (ARCOM)
33 Tonga         Ministry of Finance           Tonga Postal Services       None
   (including
   Niuafo'ou)
34 Tuvalu        ND                            ND                          ND
35 Vanuatu       Ministry of Infrastructure    Vanuatu Post Ltd            None
                 and Public Utilities
36 Viet Nam      Ministry of Information and   VIETNAM POST                None
                 Communications (MIC) of       (VNPost)
                 S.R. Viet Nam
                                                           61

                                                                                   Annex 1.Attachment 4


Postal financial services

      Member country                    Domestic         International             Postal savings
1     Afghanistan                       X                X (Receipt)
2     Australia                         X                X (Receipt and Sending)   XX
3     Bangladesh (A)                    X                X (Receipt)               XX
4     Bhutan (A)                        X                X (Receipt and Sending)
5     Brunei Darussalam (A)             X                X (Receipt and Sending)
6     Cambodia (A)                      X                X (Receipt)
7     China (People's Rep.) (A)         X                X (Receipt and Sending)
8     Dem. People's Rep. of             Statistics not available
      Korea (A)
9     Fiji                              X                X (Receipt)
10    India (A)                         X                X (Receipt and Sending)
11    Indonesia (A)                     X                X (Receipt and Sending)   XX
12    Iran (Islamic Rep.) (A)           X                X (Receipt)               X
13    Japan (A)                         X                X (Receipt and Sending)   X
14    Kiribati                          Statistics not available
15    Korea (Rep.) (A)                  X                X (Receipt and Sending)   X
16    Lao People's Dem. Rep.            X                X (Receipt and Sending)   XX
17    Malaysia (A)                      X                X (Receipt and Sending)
18    Maldives                          X                X (Receipt and Sending)
19    Mongolia (A)                      Statistics not available
20    Myanmar                           X
21    Nauru                             Statistics not available
22    Nepal (A)                         X                X (Receipt and Sending)   X
23    New Zealand                       Statistics not available
24    Pakistan (A)                      X                X (Receipt)               XX
25    Papua New Guinea                  X
26    Philippines (A)                   X                X (Receipt and Sending)   XX
27    Samoa                             Statistics not available
28    Singapour (A)                     Statistics not available
29    Solomon Islands                   Statistics not available
30    Sri Lanka (A)                     X                X (Receipt and Sending)   XX
31    Thailand (A)                      X                X (Receipt and Sending)
32    Timor-Leste (Dem. Rep.)           Statistics not available
33    Tonga (including Niuafo'ou)       Statistics not available
      (A)
34    Tuvalu                            Statistics not available
35    Vanuatu                           Statistics not available
36    Viet Nam (A)                      X                X (Receipt)               X

Note: A = Signatory to the Postal Payment Services Agreement 2008.
      X = Service provided.
     XX = Service offered in cooperation with another institution.
                                     62

                                                        Annex 1.Attachment 6


Postcode

     Member country                No postcode   Postcode not used widely
1    Afghanistan                          X
2    Australia
3    Bangladesh                                             X
4    Bhutan                                                 X
5    Brunei Darussalam
6    Cambodia                                               X
7    China (People's Rep.)
8    Dem. People's Rep. of Korea          X
9    Fiji                                 X
10   India
11   Indonesia
12   Iran (Islamic Rep.)
13   Japan
14   Kiribati                             X
15   Korea (Rep.)
16   Lao People's Dem. Rep.                                 X
17   Malaysia
18   Maldives
19   Mongolia                                               X
20   Myanmar                              X
21   Nauru                                X
22   Nepal                                                  X
23   New Zealand
24   Pakistan                                               X
25   Papua New Guinea
26   Philippines
27   Samoa                                X
28   Singapore
29   Solomon Islands                      X
30   Sri Lanka
31   Thailand
32   Timor-Leste (Dem. Rep.)
33   Tonga (including Niuafo'ou)          X
34   Tuvalu                               X
35   Vanuatu                              X
36   Viet Nam                                               X
                                                                                                                                                    Annex 2.Attachment 1
Sectoral programmes 2009–2012

Area of activity: Quality of service
Objective: Achieve the world standard of J+5 for 80% of letter-post items in most of the region's countries by 2012, by encouraging the introduction of quality
management procedures, organizing quality of service seminars and measuring quality of service in all the region's countries, in particular by the new approach to
field support for designated operators (DOs).
Activity            Content                      Current situation             Final objective             Objective 2009–2010        Objective 2011–2012         Cost
                                                                                                                                                                    (in
                                                                                                                                                                  CHF)
New approach to     – Approach based on          10 DOs participated in        Implement new               – Carry out two projects   – Initiate a project for   RDP
field support for     agreement to improve       project on new                approach aimed at             for the new approach       the rest of DOs in
designated            quality of service         approach for Asia;            improving quality of          to field support for       Asian region
operators (DOs)     – Application of the         another project was           service for all products      19 DOs
                                                 initiated for nine DOs of     (letter post, parcels and                              – Participation by
                      principles relating to                                                               – Set up a regional QS       25 DOs in UPU
                      the reduction of the       the Pacific                   EMS) including
                                                                               improvement of supply         standard                   continuous testing
                      digital gap                18 DOs participated in
                                                                               chain components            – Participation by
                    – Evaluation of results      UPU continuous testing,
                                                 64 links tested without                                     23 DOs in UPU
                      as regards quality and
                                                 interruption, 8 links with                                  continuous testing
                      actions to remedy
                      deficiencies               excellent results, 15 links




                                                                                                                                                                           63
                                                 with poor results
                    – Commercial approach
                      based on results           4 DOs (India, Korea
                    – Organizational             (Rep.), Malaysia and
                      structure and basic        Singapore) participate in
                      infrastructures            a pilot phase of the GMS
                      essential for
                      improving quality
GMS                 – Installation of quality    Pilot phase begun in          – Improvement of end-       – Installation of GMS      – Installation of GMS      RDP
                      measurement system         April 2009 and actual           to end quality              for 10 DOs                 for 10 DOs
                      for international letter   test phase begun in             performance focusing
                      mail supported by          August, including 4 DOs                                   – Achieve the quality      – Achieve the quality
                                                                                 on improving inbound
                      state-of-the art           in region (India, Korea                                     standards against          standards against
                                                                                 segment
                      technology                 (Rep.), Malaysia and                                        targets agreed for         targets agreed for
                                                 India)                        – Promoting application       each DO                    each DO
                    – Provision of the                                           of the terminal dues
                      quality measurement                                        payment system
                      tool to DOs                                                linked to quality
                    – Development of DOs'
                      skills for improving
                      quality performance
Activity             Content                   Current situation           Final objective           Objective 2009–2010        Objective 2011–2012       Cost
                                                                                                                                                            (in
                                                                                                                                                          CHF)
EMS pay-for-         – Principles and          – 18 members not            – Participation by all    – Conduct regional         – Follow-up and           RDP
performance            operation of the EMS      participating in pay-       countries in the EMS      workshop on the EMS        evaluation of project
plan                   pay-for-performance       for-performance plan        pay-for-performance       pay-for-performance        implementation
                       plan                      with at least one           plan                      plan at the Asian          through a regional
                     – Activities to be          partner.                                              Pacific Postal College     workshop
                                                                           – Upgrading of EMS
                       undertaken for                                                                  (APPC)
                                               – 7 members eligible to       and improvement of                                 – Participation by all
                       implementing EMS          take part in plan           EMS quality of          – Develop an action          DOs in the EMS pay-
                       pay-for-performance       (Australia, Bhutan,         service                   plan for implementing      for-performance plan
                       plan                      India, Indonesia, Lao                                 EMS pay-for-
                     – Methods and               People's Dem Rep,                                     performance plan
                       procedures for            Mongolia and
                                                 Pakistan); 11 not                                   – Participation by
                       participating in EMS
                                                 eligible to participate                               23 DOs in EMS pay-
                       pay-for-performance
                                                 and need to either                                    for-performance plan
                       plan
                                                 have their standards
                     – Follow-up, evaluation
                                                 validated or move to
                       and analysis of
                                                 full production status
                       results
                                                 for use of tracking
                                                 system




                                                                                                                                                                  64
Improving EMS        – Operational process     Service elements :          By 2012, all members      Service elements:          Service elements:         RDP
quality of service     for handling EMS                                    should provide EMS
(operational           items                   – Full track and trace:                               – Full track and trace:    – Full track and trace:
                                                                           service elements and
performance                                      21 DOs                                                30 DOs                     36 DOs
                     – EMS quality of                                      achieve expected level
review and             service indicators      – Written proof of          of performance for each   – Written proof of         – Written proof of
training)                                        delivery: 27 DOs          KPI:                        delivery: 30 DOs           delivery: 36 DOs
                     – EMS service
                       elements                – Use of Rugby with all     – On-time delivery: 95%   – Use of Rugby with all    – Use of Rugby with all
                     – Tools for EMS quality     partners: 27 DOs                                      partners: 30 DOs           partners: 36 DOs
                                                                           – Inbound scanning:
                       of service              – Participation in pay-       98%                     – Participation in pay-    – Participation in pay-
                       measurement and           for-performance plan:                                 for-performance plan:      for-performance plan:
                       evaluation                                          – Provision of delivery
                                                 11 DOs                                                23 DOs                     36 DOs
                                                                             information: 98%
                                               Key performance                                       Key performance            Key performance
                                                                           – On-time transmission
                                               indicators (average):                                 indicators (average):      indicators (average):
                                                                             of tracking events:
                                               – On-time delivery: 65%       98%                     – On-time delivery: 90%    – On-time delivery: 95%
                                               – Inbound scanning:         – On-time customer        – Inbound scanning:        – Inbound scanning:
                                                 90%                         service response:         95%                        98%
                                                                             98%
Activity             Content                   Current situation         Final objective             Objective 2009–2010        Objective 2011–2012       Cost
                                                                                                                                                            (in
                                                                                                                                                          CHF)
                                               – Provision of delivery                               – Provision of delivery    – Provision of delivery
                                                 information: 86%                                      information: 90%           information: 98%
                                               – On-time transmission                                – On-time transmission     – On-time transmission
                                                 of tracking events:                                   of tracking events:        of tracking events:
                                                 73%                                                   90%                        98%
                                               – On-time customer                                    – On-time customer         – On-time customer
                                                 service response:                                     service response:          service response:
                                                 92%                                                   95%                        98%
Promoting postal     – Promote use of          – 21 DOs took part in     – Carry out a regional      Pacific countries: Fiji,   Dem. People's Rep. of     RDP
addressing             postcodes and             seminar on the            project on postcodes      Kiribati, Nauru, Cook      Korea, Timor-Leste
                       addressing standards      subject                   in the Pacific region     Islands, Papua New         (Dem. Rep.)
                       within framework of a                               through a workshop        Guinea, Samoa,
                       regional project        – Two countries are                                   Solomon Islands, Tonga
                                                                                                                                Bangladesh, Lao
                       involving specific        setting up postcode     – Increase total number     (including Niuafo'ou)
                                                                                                                                People's Dem. Rep.
                       actions/tools             project                   of countries using        and Vanuatu                China (People's Rep.),
                                                                           postcodes and
                     – Improve databases                                                                                        India, Iran (Islamic
                                                                           addressing standards      Afghanistan and Bhutan
                       and develop the                                                                                          Rep.)
                                                                         – Increase the total        Myanmar and Sri Lanka




                                                                                                                                                                  65
                       range of quality
                       services and products                               number of products
                                                                                                     Indonesia, Malaysia,
                       for various customers                               and value-added
                                                                                                     Mongolia
                                                                           services through
                                                                           postcode databases
                                                                         – Increase number of
                                                                           countries participating
                                                                           in UPU standard S42
– Installation of    – IPS site survey in      – Some DOs do not         – Introduce IPS in          – Introduce IPS in         – Introduce EDI           RDP
  IPS/IPS Light        Bangladesh,               exchange EDI              Bangladesh,                 Bangladesh,                message exchange
– Increasing the       Myanmar and Sri           messages                  Myanmar and Sri             Myanmar and Sri            system in Nauru and
  effective use of     Lanka                   – With poor functioning     Lanka                       Lanka given annual         Timor-Leste (Dem.
  IPS/IPS Light      – Training programme        and transmission of     – Improve overall             mail volumes of EMS,       Rep) (countries not
  and quality of       on IPS/IPS Light at       EDI messages, Posts       quality of service,         parcels and letters        exchanging EDI
  service              APPC in Bangkok           wish to:                  providing DOs with          (registered/ insured)      messages)
  monitoring                                                               means to understand
                                                                           and resolve their own
                                                                           problems
Activity            Content                    Current situation         Final objective            Objective 2009–2010         Objective 2011–2012       Cost
                                                                                                                                                            (in
                                                                                                                                                          CHF)
                                                 • understand            – Introduce EDI            – Assist DOs in             – Improve overall
                                                   terminology used        message exchange           understanding               quality of service,
                                                   in various EMS          system in Nauru and        terminology used in         providing DOs with
                                                   Cooperative             Timor-Leste (Dem.          various reports,            the means to
                                                   reports (Monthly        Rep) (countries not        analyzing/interpreting      understand and
                                                   Target Report and       exchanging EDI             the results and             resolve their own
                                                                           messages)                  understanding/monito        problems
                                                   Quality Report
                                                                                                      ring mail flows
                                                   Card)
                                                 • analyze and
                                                   interpret data
                                                 • understand and
                                                   monitor their mail
                                                   flows
                                               – identify problems and
                                                 find solutions
Increasing postal   – Set up a regional        – Currently no regional   – Define a uniform and     – Set up a security         – Review and, if          RDP
security              security group             security group in the     coherent approach to       group in the region,        necessary, adapt




                                                                                                                                                                  66
                      comprising security        Asia-Pacific region       drawing up regional        with APPU assistance        security strategy
                      representatives of       – To date, no airport       security plans and       – Supplement regional         drawn up in 2009 and
                      Asia-Pacific region        security coordinators     organizing UPU-            security strategy with      2010
                      DOs tasked with            in region have been       funded training            information supplied      – Organize at least one
                      discussing current         trained                 – Improve overall            by DOs of UPU               training workshop in
                      issues and                                           security of                member countries            the region to enhance
                      exchanging best                                      international mail and                                 skills and knowledge
                      practices to reinforce                                                        – Organize at least one
                                                                           quality of service in                                  of DOs of UPU
                      security of Posts.                                                              multi-functional
                                                                           the region                                             member countries
                      Results of group's                                                              training session in the
                      discussions should                                 – Promote exchanges          form of a regional        – Conduct two airport
                      serve as a basis for                                 of information and         workshop aimed at           security surveys at
                      drafting a regional                                  data on irregularities     enhancing skills and        largest transit hubs
                      security plan                                        in order to resolve        knowledge of UPU          – Organize a regional
                                                                           problems at regional       member country DOs          airport security
                                                                           and world level
                                                                                                    – Conduct two airport         coordinators course
                                                                                                      security surveys at
                                                                                                      largest transit hubs
Activity           Content                    Current situation         Final objective            Objective 2009–2010     Objective 2011–2012       Cost
                                                                                                                                                       (in
                                                                                                                                                     CHF)
                   – Promote improved                                   – Improve the safety of    – Organize a regional   – Organize in-depth
                     quality of service at                                postal staff and           airport security        course on dealing
                     international transit                                customers through          coordinators course     with unforeseen
                     hubs by training and                                 training and multi-                                events, managing
                     validating airport                                   functional                                         crises and their
                     security trainers and                                programmes                                         aftermath and
                     conducting mail                                                                                         preparing
                     security surveys at                                                                                     contingency plans
                     international airports
                                                                                                                           – Assist Posts in
                   – Enhance postal staff's                                                                                  developing staff
                     skills by providing                                                                                     training programmes
                     training in various                                                                                     and customer
                     areas of postal                                                                                         awareness-raising
                     security                                                                                                strategies on the
                   – Improve safety of                                                                                       hazards associated
                     postal staff through                                                                                    with the transport of
                     training and safety of                                                                                  dangerous goods
                     customers by raising
                                                                                                                           – Airport security
                     their awareness of the




                                                                                                                                                             67
                                                                                                                             coordinators course
                     hazards associated
                     with the transport of
                     dangerous goods
Standards          – Course content could     – This is a new project   – Improve knowledge        – Develop course        – Organize a course on    RDP
education and        include barcode and                                  and awareness of           material and adapt      standards in regional
training courses     identification                                       standards so as to         according to            colleges
                     standards, key                                       improve                    experience in other
                     messaging standards                                  interoperability           regional colleges
                     used in IPS,                                         between operators.
                     addressing standards                                 As standards are
                     and IMPC-related                                     incorporated into the
                     standards. A second                                  regulations, it will
                     tier could include                                   become increasingly
                     standards for IFS,                                   important for
                     RFID, and e-                                         operators to conform
                     business. Course                                     to standards or
                     participants would                                   possibly pay penalties
                     learn about current
                     postal products and
                     gain a better
Activity   Content                  Current situation   Final objective   Objective 2009–2010   Objective 2011–2012   Cost
                                                                                                                        (in
                                                                                                                      CHF)
             understanding of
             future products. The
             course would be
             comprise lectures,
             handouts, daily
             quizzes to test
             understanding and an
             end-of-course
             examination




                                                                                                                              68
                                                                                                                                             Annex 2.Attachment 2
Sectoral programmes 2009–2012

Area of activity: Postal financial services
Objective: Promoting the Postal Payment Services Agreement as a platform for the worldwide electronic postal payment network, contributing to the
development of IFS services and networks in all countries, at both national and international level, and coordinating the creation of these services through action
in the field, modernizing existing IFS services and helping countries to open further exchanges with current IFS users, within the region and with other countries
and regions and providing staff with technical and commercial training in the area of IFS services.
Activity              Content                  Current situation          Final objective           Objective 2009–2010        Objective 2011–2012            Cost
                                                                                                                                                          (in CHF)
Organize a            Prepare the              Countries in the region    Launch the exchange of    – Organize the last        – Increase number of          RDP
regional              establishment of         need to exchange           electronic payments         phase of IFS               electronic payment        15,000
workshop to           electronic payment       international postal       based on UPU Postal         installation and           exchange corridors
develop STEFI,        exchanges:               money orders, but IFS      Payment Services            testing                    (IFS) in Asia and
IFS and IFS           – Monitoring of          is hardly used (except     Agreement in              – Train engineers in         prepare the launch of
Light services in       regional project's     minor exchanges            15 countries of the         use of IFS                 exchanges with six
Bhutan,                 progress               between Australia and      region                                                 new IFS users.
Cambodia,                                      China (People's Rep.))                               – Organize the
Indonesia, Korea      – Staff training                                                                development of
(Rep.), Lao Dem.      – Formulation and                                                               operations
People's Rep.,          signing of bilateral                                                        – Define the products
Malaysia, Nepal,        agreements                                                                    and services based




                                                                                                                                                                      69
Philippines, Viet     – Development of                                                                on the PPS
Nam                     operational issues                                                            Agreement
                                                                                                    – Prepare
                                                                                                      establishment of
                                                                                                      exchanges with nine
                                                                                                      new IFS users
Organize a            – Present payment        DOs provide different      – Satisfy customers'      – Organize information     – Organize                    RDP
regional                services               postal and non-postal        needs                     gathering in               implementation of         30,000
conference to         – Present other          financial services which   – Increase DOs'             cooperation with           conference's
coordinate the          financial services     do not always                revenues                  Restricted Union's         recommendations
provision of                                   correspond to                                          Financial Services       – Publish results
different financial   – Prepare and publish    customers' needs           – Develop new               Group
services and            recommendations                                     services                                           – Launch activities
                                               DOs' revenues from                                   – Organize conference
organize actions      – Prepare and submit     these services are not     – Help DOs to               and publish results
aimed at                proposals to POC       always significant           collaborate with non-
increasing the                                                              postal financial        – Prepare an action
level of access to                                                          service providers         plan
these services
Activity           Content                  Current situation        Final objective         Objective 2009–2010       Objective 2011–2012       Cost
                                                                                                                                             (in CHF)
Deploy STEFI,      – Develop STEFI, IFS     The region constitutes   – Install STEFI, IFS    – Install STEFI, IFS or   – Deploy IFS or IFS      RDP
IFS or IFS Light     and IFS Light in the   the largest market for     Light in at least       IFS Light in Bhutan,      Light in six new    138,400
and speed up         region                 international money        15 countries            Cambodia,                 countries
exchange of        – Install and test       orders and electronic    – Launch electronic       Indonesia, Korea        – Extend electronic
electronic           applications           payments, but IFS is       payment exchanges       (Rep.), Lao Dem.          payments exchange
payments based                              hardly used (except        based on the PPS        People's Rep.,            network
on PPS             – Develop operational    minor exchanges                                    Malaysia, Nepal,
                     services and open                                 Agreement in most
Agreement                                   between Australia and      countries of region     Philippines, Viet Nam
                     exchanges              China (People's Rep.))
Enhance the                                                                                  – Complete testing and
team responsible   – Complete                                                                  establish operational
for developing       preparations and                                                          exchanges in nine
IFS                  launch exchanges                                                          countries
                                                                                             – Promote following
                                                                                               bilateral payment
                                                                                               exchanges: Korea
                                                                                               (Rep.)–India, India–
                                                                                               Bhutan, Malaysia–
                                                                                               Indonesia,
                                                                                               Philippines–United
                                                                                               Arab Emirates,




                                                                                                                                                        70
                                                                                               Thailand–France,
                                                                                               Viet Nam–France,
                                                                                               etc.
                                                                                                                                        Annex 2.Attachment 3
Sectoral programmes 2009–2012

Area of activity: Staff training
Objective: Develop postal employees' knowledge and skills and enable them to improve the services offered to customers.
Activity            Content                  Current situation           Final objective         Objective 2009–2010      Objective 2011–2012           Cost
                                                                                                                                                    (in CHF)
Human resource      Award fellowships for    In 2009, five fellowships   Develop postal          – Ten fellowships will   – Four fellowships will     RDP
development         participation in APPC    were granted to             employees' knowledge      be granted to            be granted to four
through training                                                                                                                                    100,000
                    training programmes      Afghanistan,                and skills and enable     Afghanistan,             LDCs
provided by the                              Bangladesh, Lao             them to improve the       Bangladesh, Lao
Asian Pacific       Sponsor lecturer-                                                                                     – Two lecturer-
                                             People's Dem. Rep.,         services offered to       People's Dem. Rep.,
Postal College      consultants in some of                                                                                  consultants will be
                                             Myanmar and Nepal           customers                 Myanmar, Nepal and
(APPC)              the training                                                                                            provided in 2011
                                                                                                   five LDCs
                    programmes organized                                                                                    and 2012 for some
                    by the APPC                                                                  – Two lecturer-            of the training
                                                                                                   consultants will be      programmes organ-
                                                                                                   provided in 2009 and     ized by the APPC
                                                                                                   2010 for some of the
                                                                                                   training programmes




                                                                                                                                                               71
                                                                                                   organized by the
                                                                                                   APPC
                                                                                                                                       Annex 2.Attachment 4
Sectoral programmes 2009–2012

Area of activity: Postal market (philately)
Objective: Grow the postal market and help to publicize modern techniques for issuing postage stamps and the sales of philatelic products (personalized
stamps, introduction of elements reinforcing the security of stamp issues, online sales and compliance with philatelic code of ethics.)
Activity           Content                    Current situation      Final objective          Objective 2009–2010       Objective 2011–2012            Cost
                                                                                                                                                   (in CHF)
Philately          – Innovation through       Modern philatelic      Grow the philately       Organization of a         Organization of a            RDP
workshops            new technologies         technologies not yet   market and encourage     workshop in China         workshop in Australia
                                                                                                                                                      To be
                   – Security perforations    well known but are     the adoption of better   (People's Rep.) for the   for the South Pacific
                                                                                                                                                determined
                                              developing             philatelic techniques    Asian countries           countries
                   – Use of website as a                                                                                                        by the DDM
                     promotional tool
                   – Best practice and
                     compliance with the
                     code of ethics.
                   – Joint issues
                   – Promotion of the




                                                                                                                                                              72
                     WNS
                                                                                                                                              Annex 2.Attachment 5
Sectoral programmes 2009–2012

Area of activity: Postal market (Direct mail)
Objective: Raise awareness of the importance of direct mail as a generator of postal volumes and revenues and as contributing factor to the economic
development of countries, since it is an important part of the industry supply chain.
Activity           Content                   Current situation        Final objective             Objective 2009–2010       Objective 2011–2012               Cost
                                                                                                                                                          (in CHF)
– Developing       – Direct mail and         Lack of knowledge of     Raise awareness of          – Organization of a       – Organization of a              RDP
  expertise:         marketing course at       direct mail as a       the importance of             direct mail seminar       direct mail seminar           To be
  training and       the Asian Pacific         medium; lack of        direct mail as a              for Asian countries,      for small and island     determined
  education          Postal College            direct mail products   generator of postal           possibly in               countries, possibly in        by the
– Increasing         (APPC)                    and services           volumes and revenues          conjunction with          conjunction with          DDM and
  knowledge and    – Direct mail guide for                            and a contributing            Hongkong Post,            APPU/APPC, APP                   the
  sharing            developing and least                             factor to the economic        APPU/APPC, APP            Cooperative and             DCDEV
  information:       developed countries                              development of                Cooperative and US        industry associations
  research and       – In the digital age                             countries, since it is an     DMA                     – Gathering and
  communication                                                       important part of the       – Gathering and             sharing of
                   – DMAB conferences                                 industry supply chain
– Raising                                                                                           sharing of                information and best
                   – Survey on direct mail                            Increase designated           information and best      practices
  awareness:         products and
  advocacy                                                            operators' and other          practices               – Ongoing cooperation
                     services




                                                                                                                                                                     73
                                                                      stakeholders'               – Ongoing cooperation       with APPU/APPC,
– Combining        – "DMAB Update"                                    knowledge of direct
  efforts and                                                                                       with APPU/APPC,           APP Cooperative
                     newsletter                                       mail tools, techniques,       APP Cooperative           and industry
  seeking                                                             uses and benefits
  synergy:         – Promotion of                                                                   and industry              associations
  collaboration      partnerships with                                Urge designated               associations            – Use of distance-
  with the           other stakeholders in                            operators to provide        – Use of distance-          learning tool
  industry           the direct mail value                            specific direct mail          learning tool
                     chain                                            products and services,                                – One lecturer-
– Promoting the                                                       as well as related and      – One lecturer-             consultant for direct
  DMAB: new                                                           supporting products           consultant for direct     mail course at the
  members                                                             and services and              mail course at the        APPC in 2011 and
                                                                      marketing strategies          APPC in 2009 and          2012
                                                                                                    2010
                                                                      Encourage the use of
                                                                      tools to promote
                                                                      targeted advertising
                                                                      mail campaigns
                                                                      Promote
                                                                      environmentally
                                                                      friendly direct mail
                                                                      practices
Activity   Content   Current situation   Final objective           Objective 2009–2010   Objective 2011–2012       Cost
                                                                                                               (in CHF)
                                         Promote dialogue
                                         between designated
                                         operators, their
                                         customers and other
                                         stakeholders in the
                                         direct mail value chain
                                         Promote DMAB
                                         membership




                                                                                                                          74
                                                                                                                                                            Annex 2.Attachment 6
Sectoral programmes 2009–2012

Area of activity: Postal market (electronic postal services)
Objective: Develop domestic and international electronic postal services as a means of generating economic benefits, expanding the market and improving the
cross-border flow of postal and financial items and use of ICTs to fulfil universal service obligations.
Activity                Content                      Current situation              Final objective            Objective 2009–2010        Objective 2011–2012            Cost (in
                                                                                                                                                                           CHF)
Development of          – Establish critical         Statistics of following        Develop domestic and       Services to be             Services to be                   RDP
electronic postal         success factors and        32 countries and               international electronic   developed: consolidate     developed: consolidate           To be
services in the           research                   territories were used to       postal services as a       the lead                   the lead                   determined
Asia-Pacific            – Provide training           analyse the situation in       means of generating        The Asia Pacific           The Asia Pacific           by the DDM
region based on                                      the region:                    economic benefits,         regional is already a      regional is already a              and
a review of             – Improve existing           Afghanistan, Australia,        expanding the market
                          technical,                                                                           leader in the              leader in the                  DCDEV
relevant statistics                                  Bangladesh, Bhutan,            and improving the          development of             development of
from the UPU              operational and            Brunei Darussalam,             cross-border flow of
                          service quality                                                                      electronic postal          electronic postal
and the                                              Cambodia, China                postal and financial       services. It should        services. It should
International             standards                  (People's Rep.), Fiji,         items
                                                                           1                                   continue to develop        continue to develop
Telecommunicati         – Incorporate                Hong Kong (China) ,            Use of ICTs to fulfil      new and innovative         new and innovative
on Union (ITU)            necessary policy,          India, Indonesia, Iran         universal service          services while             services while
                          strategies and             (Islamic Rep.), Japan,         obligations                providing traditional      providing traditional
                          regulations                Korea (Rep.), Lao




                                                                                                                                                                                    75
                                                                                    Raise awareness of         services online (in area   services online (in area
                          concerning e-              People's Dem. Rep.,                                       where region's lead is     where region's lead is
                          products and               Macao (China),                 the impact of ICTs and
                                                                                    electronic services on     narrowest)                 narrowest)
                          services in the            Malaysia, Maldives,
                          Regulations and            Mongolia, Myanmar,             the local market and       Region should be
                          Acts of the UPU            New Zealand,                   develop tools to           encouraged to
                                                     Pakistan, Papua New            monitor volume growth      undertake the new
                        – Develop                                                   and quality                TRAINPOST training
                                                     Guinea, Philippines,
                          internationally                                                                      courses to be
                                                     Samoa (2005 data),
                          interoperable e-                                                                     developed by the UPU
                                                     Singapore (2006 data),
                          services                                                                             E-Services Group:
                                                     Solomon Islands, Sri
                        – Develop next-              Lanka, Thailand,                                          – General overview of
                          generation postal e-       Timor-Leste (Dem.                                           electronic postal
                          service networks           Rep.), Vanuatu, Viet                                        services
                        – Bridge the digital         Nam (2005 data)
                                                                                                               – Postal registered e-
                          divide, the postal                                                                     mail (PREM)
                          divide and the
                          industry divide

1
    There is no UPU statistical information for Hong Kong (China) on hybrid mail.
Activity   Content                  Current situation          Final objective   Objective 2009–2010    Objective 2011–2012   Cost (in
                                                                                                                                CHF)
           – Support Posts in       No recent data were                          – Electronic postal
             developing an e-       available for Dem.                             certification mark
             services offer         People's Rep. of                               (EPCM)
           – Fund postal ICTs       Korea, Kiribati, Nauru,
             and development of     Nepal, Tonga and
             e-services             Tuvalu
           – Create support         Asia-Pacific countries
             resources within the   and territories are well
             International Bureau   advanced in providing
                                    electronic postal
                                    services of all kinds,
                                    possibly because, for
                                    those indicators, each
                                    country or territory has
                                    the same weight
                                    regardless of its
                                    population. As the
                                    region comprises
                                    several small
                                    innovative postal




                                                                                                                                         76
                                    operators (Hongkong
                                    Post, Macau Post and
                                    Singapore Post are
                                    best examples) these
                                    operators are ranked
                                    relatively high
                                                                                                                                           Annex 2.Attachment 7
Sectoral programmes 2009–2012

Area of activity: Postal market (information and communication technologies (ICTs))
Objective: Promote the use of ICTs in order to modernize postal processes.
Activity             Content                  Current situation         Final objective            Objective 2009–2010   Objective 2011–2012              Cost
                                                                                                                                                      (in CHF)
Activities related   Establishment of         The figures on post       Improve connectivity of    Make use of post      Make use of post               RDP
to continued         telekiosk/public         office connectivity in    post offices               offices as            offices as                     To be
development of       Internet access points   the Asia-Pacific region   The region's main          communication         communication            determined
postal sector's      at post offices          are below the world       focus in years to come     centres in Fiji       centres in Sri Lanka    by the DDM,
role in the                                   average, particularly     should be to improve                                                     DCDEV and
information                                   the percentage of post    the overall connectivity                                                          ITU
society (use of                               offices connected to      of its post offices, so
postal network to                             an electronic network     that postal operators
connect even the                              and the percentage of     can provide new
remotest                                      post offices providing    services to a wider
communities);                                 Internet access points    range of customers
action based on                                                         and thereby benefit
cooperation with                                                        fully from the




                                                                                                                                                                  77
other                                                                   investment made in
international and                                                       developing those
regional                                                                electronic services
organizations for
specialist                                                              Region's members
resources and                                                           should also try to offer
funding                                                                 more public Internet
                                                                        access points to help
                                                                        improve the figures for
                                                                        general Internet
                                                                        access
                                                                                                                                            Annex 2.Attachment 8
Sectoral programmes 2009–2012

Area of activity: Sustainable development
Objective: Encourage a greater number of countries participate in the GHG study and the global campaign on HIV/AIDS prevention.
Activity           Content                    Current situation        Final objective           Objective 2009–2010        Objective 2011–2012            Cost
                                                                                                                                                       (in CHF)
Seminar on         Awareness-raising          Nineteen countries       Increase the number of    Increase by at least six   Have the 31 APPU             RDP
sustainable        seminar to share           returned the first       member countries          the number of member       member countries
development        information on best        questionnaire on GHG     participating in the      countries participating    participate in the study
organized in       practices for              One member country       postal sector's carbon    in the GHG study           on GHG
cooperation with   sustainable                of region participates   inventory                 Succeed in having          Have the 31 APPU
the APPU           development, focusing      as a pilot country       Urge a majority of        15 member countries        member countries
                   on:                                                 member countries to       participate in the         participate in the
                   – the GHG study                                     participate in HIV/AIDS   HIV/AIDS campaign          HIV/AIDS Campaign
                      designed to prepare a                            awareness campaign
                      carbon inventory of
                      the postal sector;
                   – workers' health
                      (awareness of




                                                                                                                                                                   78
                      HIV/AIDS prevention
                      campaign consisting
                      of three phases:
                     • raising public's
                       awareness
                     • raising staff's
                       awareness
                     • issuing
                       commemorative
                       stamp
                                                                                                                                                                                                                                                     Annex 3
Summary of the situation in the Asia-Pacific region

Country                      Contribution   PTC      EMS      Rugby        WNS        IRCs     DMAB       IPS/          IFS/           PPS           UPU*         Continuous      Post      Barcodes   Government    Designated Regulatory   IPDP      Cost
                             units          member   member                                               IPS Light*    IFS Light*     Agreement     Clearing     testing of QS   code      on         entity        operator   authority              accounting
                                                                                                          (EDI)         STEFI**                                                             outbound                                                   (THALIA)
                                                                                                                                                                                            postal
                                                                                                                                                                                            parcels
1    Afghanistan             0.5                     ▲        ▲            ▲                              ▲*(E,L,C)                                               ▲                         ▲          ▲             ▲                                 ▲
2    Australia               20             ▲        ▲        ▲            ▲          ▲        ▲          ▲(E,L,C)      ▲                            ▲            ▲               ▲         ▲          ▲             ▲           ▲
3    Bangladesh              3              ▲        ▲        ▲            ▲          ▲                   ▲*(E,-,-)                    ▲                          ▲               ▲         ▲          ▲             ▲                       ▲         ▲
4    Bhutan                  0.5                     ▲        ▲                                           ▲*(E,-,C)                    ▲                          ▲               ▲         ▲          ▲             ▲           ▲           ▲         ▲
5    Brunei Darussalam       1              ▲        ▲                                ▲                   ▲(E,-,-)                     ▲                          ▲               ▲         ▲          ▲             ▲
6    Cambodia                1                                             ▲                              ▲(E,L,C)                     ▲                                          ▲         ▲          ▲             ▲                                 ▲
7    China (People's Rep.)   25             ▲        ▲        ▲            ▲          ▲                                 ▲**            ▲                          ▲               ▲         ▲          ▲             ▲
8    Dem. People's Rep.
     of Korea                1                                             ▲                                                           ▲                                                               ▲             ▲
9    Fiji                    1              ▲        ▲        ▲            ▲                              ▲*(E,L,C)                                               ▲                         ▲          ▲             ▲                       ▲
10 India                     20             ▲        ▲        ▲            ▲                   ▲          ▲(E,-,C)      ▲              ▲                          ▲               ▲         ▲          ▲             ▲
11 Indonesia                 10             ▲        ▲        ▲            ▲                              ▲(E,L,C)                     ▲                          ▲               ▲         ▲          ▲             ▲           ▲
12 Iran (Islamic Rep.)       5              ▲        ▲        ▲            ▲          ▲        ▲          ▲(E,-,C)                     ▲                          ▲               ▲         ▲          ▲             ▲
13 Japan                     50             ▲        ▲        ▲            ▲          ▲                                                ▲             ▲            ▲               ▲         ▲          ▲             ▲
14 Kiribati                  0.5                     ▲                     ▲                              ▲*(E,-,C)                                                                         ▲                                                          ▲
15 Korea (Rep.)              15             ▲        ▲        ▲            ▲          ▲                                                ▲                                          ▲         ▲          ▲             ▲
16 Lao People's Dem.         0.5                     ▲        ▲            ▲                              ▲*(E,L,C)                                                               ▲         ▲          ▲             ▲                       ▲         ▲
     Rep.
17 Malaysia                  3              ▲        ▲        ▲            ▲                              ▲(E,L,C)                     ▲                          ▲               ▲         ▲          ▲             ▲           ▲
18 Maldives                  1                       ▲        ▲            ▲          ▲                   ▲*(E,-,-)                                               ▲               ▲         ▲          ▲             ▲                                 ▲
19 Mongolia                  1                       ▲        ▲                       ▲                   ▲*(E,L,C)                    ▲                          ▲               ▲         ▲          ▲             ▲           ▲           ▲         ▲
20 Myanmar                   1                       ▲        ▲            ▲                              ▲*(E,-,C)                                               ▲                                    ▲             ▲                                 ▲
21 Nauru                     1                                             ▲
22 Nepal                     0.5            ▲                              ▲          ▲                   ▲*(E,L,C)                    ▲                          ▲               ▲         ▲          ▲             ▲                       ▲         ▲
23 New Zealand               5              ▲        ▲        ▲            ▲          ▲        ▲                                                                  ▲               ▲         ▲          ▲             ▲
24 Pakistan                  10             ▲        ▲        ▲            ▲          ▲        ▲          ▲(E,L,C)                     ▲                          ▲               ▲         ▲          ▲             ▲




                                                                                                                                                                                                                                                                    79
25 Papua New Guinea          1                       ▲        ▲                                           ▲*(E,L,C)                                               ▲               ▲         ▲          ▲             ▲           ▲           ▲         ▲
26 Philippines               1              ▲        ▲        ▲                       ▲                   ▲(E,-,-)                     ▲                          ▲               ▲         ▲          ▲             ▲           ▲           ▲         ▲
27 Samoa                     0.5                                                                          ▲*(E,L,C)                                                                         ▲          ▲             ▲           ▲                     ▲
28 Singapore                 1              ▲        ▲        ▲            ▲          ▲                                                ▲                          ▲               ▲         ▲          ▲             ▲           ▲
29 Solomon Islands           0.5                     ▲                     ▲                              ▲*(E,-,-)                                                                         ▲          ▲             ▲                                 ▲
30 Sri Lanka                 3              ▲        ▲        ▲            ▲          ▲                   ▲*(E,-,C)                    ▲                                          ▲         ▲          ▲             ▲                       ▲         ▲
31 Thailand                  3              ▲        ▲        ▲            ▲          ▲                   ▲(E,-,C)                     ▲                          ▲               ▲         ▲          ▲             ▲
32 Timor-Leste (Dem.
     Rep.)                   0.5                                           ▲                                                                                                      ▲         ▲          ▲             ▲           ▲                     ▲
33 Tonga (including
     Niuafo'ou)              1                                             ▲                              ▲*(E,L,C)                    ▲                                                    ▲          ▲             ▲                                 ▲
34 Tuvalu                    0.5                                                                          ▲*(E,L,C)                                                                         ▲                                                          ▲
35 Vanuatu                   1                       ▲        ▲            ▲                              ▲*(E,L,C)                                                                         ▲          ▲             ▲                                 ▲
36 Viet Nam                  1              ▲        ▲        ▲            ▲                                                           ▲                          ▲               ▲         ▲          ▲             ▲                       ▲         ▲
Total                        190.5          19       28       25           29         16       5          27            3              21            2            23              25        33         33            33          10          10        20

▲ +50% of countries                                                Abbreviations                                                       IPDP: integrated postal reform and development plan             WNS: World Association for the Development of Philately
PTC                                                                IRCs: international reply coupons                                   QS: quality of service                                          (WADP) numbering system – main reference for monitoring
EMS Cooperative                                                    PTC: Postal Technology Centre                                       Rugby: EMS Cooperative system that links EMS international      stamp issues
Rugby                                                              DMAB: Direct Mail Advisory Board                                    call centres and streamlines the flow of customer inquiries.
WNS                                                                EMS: Express Mail Service                                           PPS: postal payment services
IPS/IPS Light                                                      IFS: International Financial System
Postal Payment Services Agreement                                  IPS: International Postal System
Continuous testing of quality of service                           EDI: Electronic Data Interchange (E: EMS; L: letters; C: parcels)
Postcode
Designated operator
                                                                                                                                                        Annex 4
Summary table of regional development plan activities and indicators

                                                                                                                      Region: Asia-Pacific
                                                                                                                      Year:
                                                                                                                      Quarter:
Area of activity     Project                                      Objectives and activities                           Targeted           Execution
                                                                                                                      number of          Number of       %
                                                                                                                      countries (p) or   countries or
                                                                                                                      products (pr)      products
Quality of service   1.1   New approach to field support for      Two projects to be implemented involving eight      19 (p)
                           designated operators                   seminars/workshops aimed at improving
                                                                  quality of service for all products (letter post,
                                                                  parcels and EMS)
                     1.2   Implementation of GMS including end-   Achieve world standard of J + 5 for 80% of          20 (p)
                           to-end quality performance             letter-post items in most of region's countries
                           improvement                            by 2012, by promoting the introduction of
                                                                  quality management procedures
                                                                  Promote participation by region's countries in      25 (p)
                                                                  continuous testing of letter-post service quality
                                                                  by 2012
                                                                  Promote participation in GMS implementation         20 (p)




                                                                                                                                                                  80
                                                                  phase in 2010
                     1.3   EMS pay-for-performance plan           Support designated operators in their efforts to    2009: 14 (p)
                                                                  improve EMS in order to promote their               2010: 21 (p)
                                                                  participation in EMS pay-for-performance plan       2011: 28 (p)
                                                                  Promote participation in EMS pay-for-               2012: 36 (p)
                                                                  performance plan
                     1.4   Improving EMS quality of service       Help new members to improve EMS by the              2009: 1 (p)
                           (operational performance review and    means of operational performance reviews            2010: 2 (p)
                           training)                                                                                  2011: 2 (p)
                                                                                                                      2012: 2 (p)
                                                                  Extend provision of EMS service features to all     36 DOs
                                                                  member countries:
                                                                  –    Full track and trace                           36 DOs
                                                                  –    Written proof of delivery                      36 DOs
                                                                  –    Use of Rugby with all partners                 36 DOs
                                                                  –    Participation in pay-for-performance plan      36 DOs
                                                                                                                          Region: Asia-Pacific
                                                                                                                          Year:
                                                                                                                          Quarter:
Area of activity   Project                                           Objectives and activities                            Targeted           Execution
                                                                                                                          number of          Number of      %
                                                                                                                          countries (p) or   countries or
                                                                                                                          products (pr)      products
                                                                     Improve EMS quality of service results               95%
                                                                     according to objectives set for each quality
                                                                     indicator:
                                                                     –      On-time delivery                              98%
                                                                     –      Inbound scanning                              98%
                                                                     –      Provision of delivery information             98%
                                                                     –      On-time transmission tracking events          98%
                                                                     –      On-time customer service response             98%
                   1.5   Installation and increasing effective use   Extend use of IPS/IPS Light or any globally          5 (p)
                         of IPS/IPS Light and quality of service     compatible mail tracking system to all countries
                         monitoring                                  in region for letters, registered letters, EMS and
                                                                     postal parcels
                   1.6   Enhancing postal security                   Enhance overall security of international mail       20 (p)
                                                                     through group training




                                                                                                                                                                81
                   1.7   Promoting postal addressing                 Carry out a regional project on postcodes in the     9 (p)
                                                                     Pacific region involving a workshop
                                                                     Increase the total number of countries using         2 (p)
                                                                     postcodes and addressing standards
                                                                     Increase the total number of products and            4 (p)
                                                                     value-added services through postcode
                                                                     databases
                                                                     Increase the number of countries participating       6 (p)
                                                                     in UPU standard S42
                   1.8   Promoting the use of UPU standards          Introduce a training course on standards at the      33 (p)
                                                                     regional training centres
Postal financial   2.1   Organize a regional workshop                Define regional project for development of IFS       8 (p)
services                                                             services and launch joint activities aimed at
development                                                          extending the UPU electronic payments world
                                                                     network
                   2.2   Organize a regional conference              Coordinate the provision of different postal         14 (p)
                                                                     financial services and organize the actions
                                                                     aimed at increasing the level of access to these
                                                                     services
                                                                                                                  Region: Asia-Pacific
                                                                                                                  Year:
                                                                                                                  Quarter:
Area of activity   Project                                     Objectives and activities                          Targeted           Execution
                                                                                                                  number of          Number of      %
                                                                                                                  countries (p) or   countries or
                                                                                                                  products (pr)      products
                   2.3   Enhance the IB team responsible for   Engage an IFS operational project manager          10 (p)
                         developing IFS projects               Engage an IFS technical expert
                   2.4   Extend STEFI, IFS or IFS Light        Speed up the opening of electronic postal          10 (p)
                                                               payment exchanges
Human resource     3.1   Human resource development through    Enhance postal employees' knowledge and            14 (p)
development              training at the Asia Pacific Postal   skills and enable them to improve services
                         College (APPC)                        offered to customers
Postal market      4.1   Philately workshops                   Promote the use of the WADP numbering              31 (p)
(Philately)                                                    system (WNS)
                                                               Develop innovation in the issuing of postage
                                                               stamps (security perforations, new shapes,
                                                               new printing technologies, etc.)
                                                               Promote online sales to extend the
                                                               international market




                                                                                                                                                        82
                                                               Develop personalized stamps
Postal market      5.1   Direct mail seminars                  Raise awareness of the importance of direct        Increase 10%
(direct mail)                                                  mail, given that it is an important generator of
                                                               postal volumes and revenues and a
                                                               contributing factor in the economic
                                                               development of countries, as an important part
                                                               of the industry supply chain
                                                               Promote the provision of specific direct mail
                                                               products and services by designated operators,
                                                               as well as related and supporting products and
                                                               services and marketing strategies
                                                               Increase designated operators' and other           18 (p)
                                                               stakeholders' knowledge of direct mail tools,
                                                               techniques, uses and benefits
                                                               Promote DMAB membership                            7 (p)
                                                                                                                      Region: Asia-Pacific
                                                                                                                      Year:
                                                                                                                      Quarter:
Area of activity     Project                                        Objectives and activities                         Targeted           Execution
                                                                                                                      number of          Number of      %
                                                                                                                      countries (p) or   countries or
                                                                                                                      products (pr)      products
Postal market        6.1   Development of electronic postal         Participation of members in regional toolkit      10 (p)
(electronic postal         services in the Asia-Pacific region      workshop
services)                                                           Completion of TRAINPOST course (to be             5 (p)
                                                                    developed) on general postal e-services, postal
                                                                    registered e-mail and EPCM
Postal market        7.1   Establishment of telekiosk/public        Use of post offices as communications centres     23 (p)
(information and           Internet access points at post offices
communication
technologies
(ICTs))
Sustainable          8.1   Sustainable development seminar at       Exchange model practices on sustainable           36 (p)
development                the Asia Pacific Postal College          development
                                                                    Facilitate an exchange of information on          36 (p)
                                                                    sustainable development issues at local level




                                                                                                                                                            83
                                                                    Identify actions to be implemented taking into    36 (p)
                                                                    account of the legislation, respective cultures
                                                                    and means available
                                                                    Prepare pilot actions based on the experience     36 (p)
                                                                    of the others