As there is no current plan to raise the postage rate, the Hongkong Post will introduce an online-shopping platform and expand the existing e-Post service to maintain revenue next year.

The Hongkong Post recorded an increase in total mail volume and a double-digit growth in capital return in 2007-08, but it saw a 10.5 percent setback in profits to approximately HK$400 million.

"This was due to the civil servants' pay raise," Postmaster General Tam Wing-pong said at a press conference yesterday.

The total mail volume rose about 6 percent in 2007-08, as the volume of both local mail and registered air mail increased.

There was also a 6 percent increase in local mail volume. Among it, 8 million pieces of mail came from listed companies, including their annual reports.

Tam said the volume is even greater if the 31 million mailed Legislative Council election advertisements are taken into account.

Meanwhile, registered airmail volume surged 21 percent due to robust internet-trading activities, which the Post profited from by delivering the items.

However, Tam expects a fall in mail volume and revenue in the coming year, owing to slow economic development.

He added that the rising price of fuel, which is a major expense in the delivery of airmail, is also taking a toll on earnings.

Since the Post has no plans to revise the postage rate at the moment, and considering that it doesn't receive any subsidy from the government, Tam said the Post will invest HK$62 million to introduce new services and expand the current operations to maintain revenue.

For starters, it plans to launch the "one-stop e-shopping service for small and medium enterprises" in November, at a cost of about HK$2 million.

"As many internet traders will use our registered airmail service to deliver products, we found online trade has great development potential," Tam said.

He added that the service will not only help merchants promote their brands and products, but also stimulate the use of different postal services.

(HK Edition 09/12/2008 page1)