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 recent survey revealed that 98% of Hong Kong Post's 120 post offices were operating at a loss in the 2024-25 financial year, with losses increasing by 8% compared to the previous year. The city's post offices generated HK$277 million in revenue but incurred HK$522 million in expenditure, resulting in a net loss of HK$245 million. Only two post offices managed to turn a profit, down from six in the previous year and 24 a decade earlier.
The decline in traditional mail, driven by the rise of e-commerce and private delivery firms, has contributed to the financial challenges faced by Hongkong Post. The postal service handled 611 million mail items in 2024-25, a 38% decrease from 978 million in 2020-21. Five post offices had a productivity index below 50%, while 33 were in the 50-70% range, up from three and 26 respectively five years earlier.
To address the financial strain, Hongkong Post announced on Tuesday that it would stop offering permanent civil service positions to new employees, instead providing two-year contracts. This move sparked controversy within the public service, as it could lead to a loss of experienced staff. The decision came after the Legislative Council approved a rescue plan to inject HK$4.6 billion in funding to sustain Hongkong Post's operations for the next three years, with further reforms expected by 2028.
Former postmaster general Tam Wing-pong noted that the post office network's wide coverage once provided an advantage, but the decline in traditional postal services has negatively impacted customer traffic and branch finances. He acknowledged the intense competition from private couriers and highlighted the pressure of high rental costs, particularly for post offices located in Link Reit properties, which manage many shopping centres in public housing estates.
Cheung Wai-kuen, chairman of the Hong Kong Postal Workers Union, emphasized that a productivity index of 50% or above should be considered the "bottom line" for any normal business.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
