Stamp of approval sought on HK$4.6 billion lifeline for struggling Hongkong Post
Government-owned postal service provider has recorded eight consecutive annual deficits, accumulating nearly HK$2.9 billion in losses
Hong Kong authorities are seeking to inject HK$4.6 billion (US$587 million) into the government-owned postal service provider to sustain its operations for the next three years, following eight years of losses and declining mail volume.
A document submitted to the Legislative Council on Wednesday by the Commerce and Economic Development Bureau showed a bruising fiscal trajectory for the Post Office Trading Fund (POTF) of Hongkong Post since 2017-18.
Self-financing since 1995, Hongkong Post has recorded eight consecutive annual deficits, accumulating nearly HK$2.9 billion in losses. That stands in stark contrast to its 1997-98 peak profit of HK$1.23 billion.
The bureau said Hongkong Post faced major operational shifts, as geopolitical developments had reshaped global postal services and electronic communication had permanently reduced demand for traditional mail.
“The rapid development of the e-commerce industry has resulted in the influx of commercial logistics operators into the market, who possess substantial resources to build their own logistics networks and delivery teams, and are capable of offering point-to-point delivery services at more competitive prices,” the bureau said.