Hong Kong Post Records Historic HK$821M Deficit, Sparking Debate Over Future Model
HK01 · 1 SOURCESabout 3 hours ago2 MIN
Summary
Hong Kong Post is facing its most severe financial crisis in three decades. The postal service reported a record deficit of HK$821 million for fiscal year 2024-25, marking the highest loss since the establishment of its trading fund model in 1995 . The government has responded by modifying employment practices, shifting newly permanent-eligible postal workers to two-year civil service contracts instead of traditional long-term appointments . This move affects approximately 30 staff initially, with total impact expected to exceed 200 employees . The article contends that Hong Kong Post's predicament stems from its ambiguous position between public service obligations and commercial viability requirements.
Key Points
- Hong Kong Post's deficit of HK$821 million in 2024-25 surpasses all previous losses since the trading fund was created in 1995
- Mail volume has declined by over 50% since 2009 due to digitalization and e-commerce growth, resulting in eight consecutive years of losses
- Staff numbers fell by 29.3% between 2009 and 2025, yet productivity actually declined per worker-hour during this period
- Cost per mail item increased from HK$3.051 in 2009 to HK$5.498, while employee cost allocation rose from HK$1.580 to HK$3.438 per item
- Losses per mail have expanded to HK$1.344 since 2018, which investment returns of only HK$0.221 per item cannot offset
- The article cites global precedents where UK, Japan, Singapore, and Germany have successfully privatized or thoroughly reformed their postal systems
Why It Matters
The Hong Kong Post dilemma reflects broader questions about government service delivery in the digital age, particularly whether traditional postal infrastructure can justify continued public funding when private logistics companies already provide comprehensive coverage . The report suggests that without fundamental reform to clarify its institutional status—either as a fully subsidized public service or a genuinely commercial enterprise—the postal service will continue depleting public coffers without achieving meaningful service improvements .
The Hong Kong Post dilemma reflects broader questions about government service delivery in the digital age, particularly whether traditional postal infrastructure can justify continued public funding when private logistics companies already provide comprehensive coverage . The report suggests that without fundamental reform to clarify its institutional status—either as a fully subsidized public service or a genuinely commercial enterprise—the postal service will continue depleting public coffers without achieving meaningful service improvements .