Hongkong Post urged to use global links to expand e-commerce business

Hongkong Post has missed opportunities to reform in the past but can still use its global network to expand its e-commerce business, says a former postmaster general who was behind a review of the department's operations seven years ago.

Tam Wing-pong, who headed the post office between 2006 and 2008, was sharing his thoughts after Financial Secretary John Tsang Chun-wah announced last month a review of the department's business operations "to further support the development of the logistics industry in Hong Kong and expand its service offerings in response to market needs".

With demand in decline for traditional mailing services, the 174-year-old organisation has in recent years been promoting new businesses such as speed delivery and e-commerce retail. Yet rising operational costs have put its financial sustainability in doubt and it has recorded losses in the past three years. These were cut from HK$114 million in 2013 to HK$3 million last year only after a rise in postage fees.

In an interview with the Post, during which Tam stressed he was speaking in a personal capacity, the retired official said the hybrid role of Hongkong Post as a provider of both public and commercial services had put constraints on its finances.

"When I assumed office, I felt it was a challenge as I was assigned to run commercial activities while being bound by government rules," he said.