The past year in Hongkong Post will be remembered as both a year of celebrations and a year of remarkable challenges.

The establishment of the Post Office in 1841 heralded the development of a modern society in Hong Kong with enhanced information flow. Reliable and efficient communication services provided by the Post Office over the years have improved not only connectivity within the territory but also linkages with other places outside Hong Kong far and near. On the 170th anniversary of this iconic public institution in Hong Kong, we celebrated its achievements in bringing people and businesses closer together with a programme of activities that engaged both the public and our staff.

In 2011/12, Hongkong Post also faced a tough business environment under the irreversible trend of e-substitution and continuous costs escalation. We responded to the evolving business landscape with tight cost management, rigorous efforts in enhancing operational efficiency, innovative business initiatives as well as an emphasis on enhanced customer experience.

In our drive to manage costs, we tap the potential of technology to streamline operational processes and raise service quality. A new, IT-based integrated postal services system is under development for implementation by phases commencing in 2014/15 to improve interfaces between counter operations and the backend support functions. Handheld data terminals are being rolled out to all delivery Postmen to facilitate the last-mile processing of mail items requiring delivery to the door. The amalgamation of the International Mail Centre and the sorting office currently accommodated in the General Post Office Building into a single Central Mail Centre in Kowloon Bay for full commissioning in December 2014 will create operational synergy and lead to more efficient use of manpower, transportation and other resources.

Hongkong Post boasts a comprehensive local delivery coverage that embraces 2.99 million residential and commercial addresses as well as a territory-wide network of 128 branch offices. To make better use of this unrivalled postal infrastructure, we have introduced a new counter collection service at our branch offices for internet-traded items. Customised logistics service leveraging on the unparalleled reach of our dispatch network is also on offer for high-end consumer products.

While digitised communication poses a serious threat to our business growth, the ubiquitous internet platform and the emerging social media also bring new opportunities to the postal industry. The e-Express service to the US launched in the first half of 2011 captures the demand for an economical and reliable postal solution in the fast-growing online shopping market in the US. The upgrading of the web-based EC-Ship service facilitates posting preparation by both bulk mailers and casual customers while at the same time speeding up counter operations. In 2011, we launched the Hongkong Post app to provide our customers with on-demand access to postal information and mail tracking service.

Small and Medium-sized Enterprises (SMEs) are the mainstay of our economy. Building on Hongkong Post's broad suite of postal services and products, we have devised total solutions to assist local SMEs in their business operations including marketing and brand building, customer relations management and secure electronic communication. Some 40,000 local enterprises are already members of Hongkong Posts SME Plus. We have been proactively reaching out to trade associations and relevant business organisations to further promote our range of business facilitation services.

Innovation underpins our approach to product development, including our philatelic service. The past year saw the release of a number of creative stamp designs, including the first-ever silk stamp for the Year of the Dragon, the shield-shaped stamp to commemorate the 150th anniversary of Queen's College and the heartwarming stamps minipane on the theme of Valentine's Day infused with fragrance for the first time. We hope to inspire a new generation of stamp collectors with refreshing stamp designs on themes that have a broad appeal.

As customers become more sophisticated, Hongkong Post has redefined service quality to embrace enhanced customer experience. Much encouraged by the enthusiastic feedback from both our customers and our staff to the new user-centric design of our Mong Kok Post Office, we will adopt this award-winning design when we refurbish or reprovision our branch offices in future so as to add value to our service provision.

With the dedicated effort of my team in Hongkong Post, we saw a growth of 3.1% in the total mail traffic volume and a 6% growth in total operating revenue in 2011/12. However, the revenue increase was more than offset by the increase in the operating costs. Our overall rate of return in 2011/12 was -1.9%.

As a trading fund, Hongkong Post is required to be self-financing and to earn a return on Government's investment. Since its establishment, Hongkong Post has capitalised on the flexibility and facility allowed under this mode of operation to provide quality services at very reasonable prices to the local community.

This institution has weathered tough times in the past, thanks to the unstinting professionalism of the entire team. Throughout, we remain firmly committed to our corporate mission of "Linking People, Delivering Business". Despite the transformational effects of e-communication on posting behaviours and the prevailing austere business environment, we see a future for the postal industry and for Hongkong Post. The challenge lies in finding the right combination of solutions to meet constantly changing market needs and to unleash the potential that new technologies bring. This is the priority task I have set for myself and my team for the year ahead. We look to all stakeholders, our customers included, to support us in this endeavour to secure a sustainable future for Hongkong Post.

Mrs. Jessie TING
Postmaster General and
General Manager of the Post Office Trading Fund

Please click here to download The Postmaster General's Statement [PDF, 2 pages of 603KB]