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Lo Hoi-ying

The impending closure of one of Hong Kong’s leading security firms does not sound the alarm about a wave of industry shutdowns, trade representatives have said, while staff shortages remain a challenge for businesses.
Johnny Ho Kai-man, chairman of the Chamber of Security Industry, told the Post that the closure of CNT Security Company could be described as a “glorious winding up”.
Ho said the company was respected in the industry and that it did its due diligence by laying out a road map for its expected closure next April.
“The termination of contracts with its clients and staff was done gradually to reduce the impact on them,” he said.
“Compared with the recent waves of business closures in which some companies just pulled the shutters on customers and staff suddenly, this is considered legally responsible.”
The firm, chaired by a retired senior police officer, will cease operations before next April, with more than 2,000 employees expected to be laid off.
The move came to light when CNT Security told the landlords of Allway Gardens, a residential estate in Tsuen Wan, that their request to extend its contract until December this year could not be fulfilled.
CNT Security attributed the closure decision to a recent board resolution.
Lau Ho-sum, vice-president of the Buildings Management and Security Workers General Union, told the Post that his group had received four reports from affected employees who said they were asked to voluntarily terminate their contracts.
He said that when some estates switched management companies, security guards would be given the choice to be assigned elsewhere or voluntarily resign. By resigning, they could then sign up with the new management company and remain on the same estate.
Lau said CNT Security staff did so when approached by the company without knowing about its plans to shut down, and hence felt their termination was on unfair terms.
Another part-time employee who had worked for three days for about HK$800 (US$102) daily told the union he had yet to receive his pay from the company, Lau added.
The Federation of Kowloon and Hong Kong Labour Unions said it had received six reports from affected staff. Assistant union affairs director Mike Lo said that the employees had touched base but were not facing any delayed salary payments.
“They said the company said it would make arrangements for them to be re-employed, but they contacted us in case any irregularities happen during the switch in contract,” Lo said.

Hong Kong had more than 360,000 security personnel permit holders as of February last year. An industry survey by the Vocational Training Council in 2022 found that more than 137,800 residents were employed in the security services industry, with the figure projected to reach 143,000 by 2026.
Around 70 per cent of the security guards earned between HK$12,000 and HK$20,000 a month, according to the survey.
Ho said CNT Security shutting down was an isolated case and not a warning sign that the industry was facing challenges.
“The security services industry is very stable,” he said, adding that the closure could be related to the company’s board of directors reaching retirement age.
“In fact, in times of economic hardship, the industry will see more people joining as some people lose their jobs [in other industries].”
Lawmaker Lam Chun-sing agreed that the shutdown was not a sign of a struggling industry, noting that demand for the essential service remained stable even during the pandemic.
But in recent years, property owners cutting their budgets for estate management tenders had added pressure to operations, Lam said.
Ho agreed, saying that tighter contracts between property owners and estate management companies meant businesses had to pay more in penalties whenever they were unable to fill security guards’ shifts, even if they had workers who had fallen ill.
Union vice-president Lau said long hours and low pay made the industry unattractive to younger workers.
Ho said the city’s imported labour scheme had helped to ease the manpower crunch, but tough working conditions made the industry unattractive to young people.
Under the government’s Enhanced Supplementary Labour Scheme, more than 1,000 security guards were approved to work in Hong Kong as of last September.
To solve staffing shortages, Lam suggested that some security guard roles that were less physically demanding be offered to retirees or the elderly as part-time positions.


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CNT Security will cease operations before next April, with more than 2,000 employees expected to be laid off


CNT Security will cease operations before next April, with more than 2,000 employees expected to be laid off.


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