Does cash-strapped Hongkong Post need to deliver profits or just public services?
On a recent weekday morning, the Repulse Bay post office, in one of Hong Kong’s most affluent coastal neighbourhoods, stood almost empty. In an hour, only five customers walked through the door, with two staff members serving them. One of them was Dicky Lo, who had sent a parcel to Europe, citing the service’s reasonable price compared with private couriers. “I come here two to three times a…
A recently underperforming post office in Hong Kong's affluent Repulse Bay district recorded only five customers in a single hour, illustrating the broader financial struggles of Hong Kong Post. The government-run postal service reported a record deficit of HK$821 million (US$105.3 million) in 2024-25, marking eight consecutive years of losses after recording a peak profit of HK$1.23 billion in 1997-98.
In a bid to cut costs, Hongkong Post announced it would stop offering permanent civil service positions, instead providing two-year contracts, sparking backlash from the public service.
Despite the losses, only two post offices managed to generate profits in 2024-25, down from six the previous year and 24 in 2014-15. The number of loss-making post offices surged to 120, or 98% of all branches, a significant increase from 118, or 95% in 2020-21, and 103, or 81% in 2014-15.
The decline in traditional mail, the rise of private delivery firms, and the expansion of e-commerce have all contributed to the financial troubles of Hongkong Post. Its mail volume dropped by 38% from 978 million items in 2020-21 to 611 million in 2024-25. Five branches recorded a productivity index below 50%, indicating inefficient operations.
The spokesman for Hongkong Post emphasized that profitability was not the department's primary concern, stating that its primary duty is to provide a convenient postal network for the public.
Written by urgent.news from South China Morning Post - Hong Kong's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
