Deep Dive delves into hot issues in Hong Kong and mainland China. Our easy-to-read articles provide context to grasp what’s happening, while our questions help you craft informed responses. Check sample answers at the end of the page.
News: Hongkong Post’s financial struggles
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Hong Kong’s postal service has been losing money for eight years, with only a few branches turning a profit
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The city’s post offices have started ways to save money
On a weekday morning in August, the Repulse Bay post office was almost empty. It stands in one of Hong Kong’s wealthiest neighbourhoods. In an hour, only five customers had walked through the door, with two staff members serving them.
Customer Dicky Lo sent a parcel to Europe. He said the post office was more reasonably priced compared with private couriers.
“I come here two to three times a month, mostly to collect online shopping packages,” the 43-year-old freelancer said. “Not many residents use this branch, which is exactly why I like it.”
The Repulse Bay resident said that closing the post office would be inconvenient for him. He would have to travel 7km to Aberdeen for postal services.
“Post offices are still necessary. Besides sending parcels, residents can pay electricity, water and tax bills here … They are different from private courier services,” Lo said.
“Not every government service is profit-making, as they have to satisfy residents’ needs. We cannot judge them merely by profit and loss.”
The Repulse Bay branch was one of five post offices that recorded a productivity index below 50 per cent.
Since 1995, the government’s postal services department has financed itself. In 1997-98, it saw its peak profit of HK$1.23 billion. But for the past eight years, it has only recorded deficits.
In 2024-25, Hongkong Post had a record deficit of HK$821 million. The city’s post offices only made HK$277 million in revenue while spending HK$522 million. This resulted in a loss of HK$245 million, 8 per cent higher than in 2020-21.
The Legislative Council has approved a rescue plan to give HK$4.6 billion to support Hongkong Post’s operations for the next three years. The government has also pledged to propose a road map for reform by 2028.
To save money, the Hongkong Post said it would stop giving permanent civil service positions to new employees. Instead, it would offer them two-year contracts. The move was criticised by public servants.
As a band-aid measure, observers have called for a review of the city’s post office network. The latest figures revealed that 98 per cent of post offices in Hong Kong had been losing money.
In 2024-25, the number of loss-making post offices rose to 120, or 98 per cent of all branches. This is up from 118, or 95 per cent, five years earlier. In comparison, 10 years ago, 103 post offices were loss-making, or 81 per cent of all branches.
Staff writers
Question prompts
1. Which of the following statements are false, according to the information in the news?
(1) Many people in Hong Kong find Hongkong Post services too expensive.
(2) A review of the city’s post offices is being called for due to budget deficits.
(3) Most post offices in Hong Kong cannot make ends meet.
(4) The Repulse Bay post office is one of Hong Kong’s most profitable branches.
A. (1), (2) only
B. (1), (4) only
C. (2), (4) only
D. (3), (4) only
2. Apart from sending letters, what other services are offered at Hong Kong’s post offices? Why do you think people are not using these services as much as they did in the past?
3. How has Hongkong Post responded to this financial crisis, and what are the benefits and consequences of the measure?
Chart
Question prompts
1. How many post offices made profits in the year 2024-25, and how does this compare to the number of profit-making post offices in 2020-21?
2. Is the post office in Repulse Bay a profit-making branches? Explain using the news and the glossary.
Glossary
productivity index: a metric measuring the amount of mail handled per worker at each site over a period of time
deficits: amounts in which money spent or owed is more than money earned in a particular period of time
band-aid measure: a temporary, superficial fix that addresses a symptom rather than solving the underlying root problem
Sample answers
News
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B
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You can also send and receive parcels and even pay government bills like your electricity, water and taxes. Today, many people use other delivery services and pay bills online through portals and websites. You can also send emails or message on social media instead of posting letters.
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Hongkong Post will stop giving permanent civil service positions to new employees. Instead, it will offer them two-year contracts. The move has been criticised by public servants. A benefit of this measure is that it will save the government money and effort by avoiding the hiring of brand-new full-time employees. However, a consequence is that the postal service’s quality may be affected as the role could be filled easily by someone who is not committed and will leave for a permanent role elsewhere.
Chart 1
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Only two post offices made profits in 2024-25, which is four fewer than in 2020-21.
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The Repulse Bay post office cannot be one of the two profit-making branches, as its productivity index – which measures the amount of mail and the manpower at an individual site – was among the five post offices with a productivity index below 50 per cent.
