Hong Kong Vows Long-Term Plan for Struggling Postal Service

Hong Kong authorities have vowed to develop a long-term road map for the city’s struggling self-financing postal operator and keep an “open-mind” on all options, including privatisation or turning it into a traditional department.

Acting Secretary for Commerce and Economic Development Bernard Chan Pak-li revealed the move at the Legislative Council’s economic development panel meeting on Tuesday, saying the proposed HK$4.6 billion (US$587 million) cash injection to Hongkong Post was intended to “buy time” for the reform.

Chan said the government was “comprehensively” reviewing Hongkong Post’s operating model, and would submit a report on the long-term road map for the public postal service provider in three years.

He was speaking as the authorities consulted the legislature on the plan to inject HK$4.6 billion into the Post Office Trading Fund, which manages and accounts for Hongkong Post’s operations.

“This is just a short-term and transitional plan that would allow us to continue providing public postal services and buy time for our reform,” Chan said.

“The reform process involves many complicated and even sensitive topics, including Hongkong Post’s structural change, service change and human resources arrangements,” he added, stressing that the authorities would need more time to liaise with stakeholders.