{
  "id": 2871073,
  "title": "Hongkong Post should focus on public service, not profit",
  "url": "https://urgent.news/2026/08/23/hongkong-post-should-focus-on-public-service-not-profit",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-23T21:30:05.000Z",
  "source": {
    "name": "South China Morning Post - Hong Kong",
    "slug": "south-china-morning-post-hong-kong",
    "url": "https://www.scmp.com/opinion/hong-kong-opinion/article/3364788/hongkong-post-should-focus-public-service-not-profit"
  },
  "original_language": "en",
  "account": "Two years after the Audit Commission criticized Hongkong Post for its lack of profitability and other shortcomings, the postmaster finally took steps to address a critical issue: staffing costs. However, the audit report was likely not the primary trigger for change. Instead, the government's need to request a HK$4.6 billion (US$510 million) bailout to sustain Hongkong Post for the next three years compelled the postmaster to take action. The city's postal service has been in decline for decades, as snail mail worldwide faces challenges in the digital age. This has led to job cuts and a reevaluation of post offices' roles in the modern era.\n\nDenmark serves as a stark example, ending its 400-year letter delivery service in 2025 to concentrate solely on parcel delivery. While this approach might not be suitable for Hong Kong, the country's advanced digitalization efforts could exacerbate the postal service's crisis. The government is encouraging residents to utilize iAM Smart, a digital platform for government services, which has already attracted over 4 million users by the end of 2025. As this trend continues, Hongkong Post must adapt or risk failing alongside the government's digitalization efforts.\n\nThe Audit Commission warned in 2024 that Hongkong Post must adapt or face extinction. Although incremental changes like closing underperforming post offices and securing more affordable rents have been suggested, they are insufficient to address the financial challenges. Losing HK$245 million annually from 2024-25 is unsustainable. The Post Office Trading Fund, established in 1995 to fund the service through commercial revenues, is no longer viable, as Hongkong Post has recorded deficits for eight consecutive years.\n\nWhile it may be unjust to evaluate a public service solely based on profits and losses, we must recognize the postal service's growing competition. Hongkong Post has struggled to diversify its services and markets, with cross-border e-commerce revenue falling short of expectations. The postmaster has responded by hiring new staff on two-year contracts instead of the traditional civil servant package, including pensions. This decision has sparked controversy, but it is a necessary step to reduce costs.\n\nThe postmaster general has indicated that all options will be considered, including transforming Hongkong Post into a government-funded entity, creating a joint venture with the private sector, or privatizing the service. However, the crucial question is whether the postal service can simultaneously serve the public and generate profits. The primary duty of the postal service remains to provide essential services at convenient locations; profit generation is secondary. Drawing insights from global experiences, the government must determine how to separate the public service aspect from the commercial operations effectively.",
  "summary": "Two years after the Audit Commission called out Hongkong Post for its lack of profitability and other failings, the postmaster finally moved to fix a structural expense: staff costs. But the audit report probably wasn’t the main catalyst for change. Rather, it was the fact the government had to ask the Legislative Council for a HK$4.6 billion (US$510 million) bailout to keep Hongkong Post…",
  "key_points": [
    "Hong Kong Post must focus on public service, not profit.",
    "Government bailout of HK$4.6 billion required action.",
    "Denmark ended letter delivery to focus on parcel delivery."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "South China Morning Post",
        "title": "Hongkong Post should focus on public service, not profit",
        "url": "https://urgent.news/2026/08/23/hongkong-post-should-focus-on-public-service-not-profit-2871444",
        "published": "2026-08-23T21:30:05.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}