Hong Kong Post to Face Continued Losses; Govt to Review Revival Plan
AM730 · 2 SOURCESabout 4 hours ago2 MIN
Summary
Commerce and Economic Development Bureau Secretary Algernon Yau stated on a radio programme that Hong Kong Post is expected to continue facing financial losses in the years ahead, prompting the government to re-examine methods to restore the service to normal operations. The key challenge lies in reversing the losses that have plagued the organisation. Hong Kong Post has been running deficits for eight consecutive years, a situation exacerbated by the COVID-19 pandemic and the subsequent shift in consumer behaviour toward e-commerce platforms. The sharp decline in transit business has forced authorities to reconsider their strategy.
Key Points
- Hong Kong Post has suffered losses for eight consecutive years, with the COVID-19 pandemic further disrupting commercial trade
- Postal transit business has declined dramatically by 80 percent due to rapid e-commerce development and shifting consumer habits
- The government decided to halt construction of the Hong Kong Post Air Mail Centre, saving approximately HK$4 billion
- Approximately 200 probationary postal workers and mail carriers will receive two-year civil servant contracts instead of permanent employment terms starting from September
- Two major e-commerce platforms currently dominate 80 percent of the market, making it difficult for Hong Kong Post to compete
- The government plans to submit a revitalisation proposal to the Chief Executive by the first half of 2027
- Yau emphasised that staff welfare will be protected under the new arrangement, though no permanent positions will be offered for now
Why It Matters
The government's decision to halt the Air Mail Centre project signals a fundamental rethinking of Hong Kong Post's role in an e-commerce dominated landscape, potentially affecting hundreds of postal workers and the future of government-operated postal services in the city . The upcoming 2027 proposal will determine whether Hong Kong Post can transform its operations or face further restructuring, with implications for both public sector employment and postal infrastructure policy .
The government's decision to halt the Air Mail Centre project signals a fundamental rethinking of Hong Kong Post's role in an e-commerce dominated landscape, potentially affecting hundreds of postal workers and the future of government-operated postal services in the city . The upcoming 2027 proposal will determine whether Hong Kong Post can transform its operations or face further restructuring, with implications for both public sector employment and postal infrastructure policy .