Cash-Strapped Hongkong Post Stops Offering Permanent Posts Amid Record HK$821M Deficit
SCMP · 1 SOURCESabout 3 hours ago2 MIN
Summary
Hongkong Post announced on Tuesday it would stop offering permanent civil service positions to new employees, switching to two-year contracts instead. The move follows Legislative Council's approval of a HK$4.6 billion rescue package to support the cash-strapped postal service for the next three years. The decision has sparked public service backlash as the department grapples with its eighth consecutive year of deficits and a record loss of HK$821 million in 2024-25.
Key Points
- Hongkong Post reported a record deficit of HK$821 million (US$105.3 million) for 2024-25, its eighth consecutive annual loss
- The postal service was a self-financing government department since 1995, having peaked with HK$1.23 billion profit in 1997-98
- Five post offices, including the Repulse Bay branch in one of Hong Kong's most affluent coastal areas, recorded productivity below 50 percent
- LegCo approved injecting HK$4.6 billion to support Hongkong Post's operations for the next three years
- New hires will receive two-year contracts instead of permanent civil service positions, marking an unprecedented cost-saving measure
Why It Matters
The restructuring raises questions about whether essential public services should be evaluated by commercial metrics. Residents like Dicky Lo, a 43-year-old freelancer in Repulse Bay, argue that post offices provide necessary services including bill payments that private couriers cannot replace, highlighting the tension between fiscal sustainability and universal service obligations. The backlash from public servants signals potential challenges in implementing the new employment model while maintaining service quality .
The restructuring raises questions about whether essential public services should be evaluated by commercial metrics. Residents like Dicky Lo, a 43-year-old freelancer in Repulse Bay, argue that post offices provide necessary services including bill payments that private couriers cannot replace, highlighting the tension between fiscal sustainability and universal service obligations. The backlash from public servants signals potential challenges in implementing the new employment model while maintaining service quality .