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Following is an address by Chairman of the Mandatory Provident Fund Schemes Authority (MPFA), the Hon Charles Lee, at a press conference on the implementation of the MPF System today (December 1):

Ladies and gentlemen of the media,

Thank you very much for being here today. At long last, after almost 30 years of hard work by all sectors of the society, we are here today to witness the commencement of the Mandatory Provident Fund System. This is indeed an important milestone in Hong Kong's further advancement as a developed economy.

Today, retirement protection is no longer a benefit for the fortunate few. It is now a right, enshrined in the law, of all members of the three million-plus workforce.

Most of us should be familiar with how our community has evolved over the past three decades. The society has transformed and the economy structured with the passage of time. While the idea of raising children as a protection for the old age as becoming out dated, the population is ageing rapidly as ever. It is imperative that a suitable protection system should be put in place in order to provide the elderly with a reliable source of income after retirement.

As you are all aware, the principal Ordinance of the MPF System was passed by the Legislative in 1995. The SAR Government followed through to complete the essential subsidiary legislation in 1998. In the same year, the Mandatory Provident Fund Schemes Authority was established. Two years on, I am gratified to see that we are beginning to reap the fruit of the hard work.

The MPF System is set out to be an equitable and prudent system. And it will be a pillar of a more solid social infrastructure in the future. The MPFA is committed to ensuring that the system is implemented effectively and in accordance with the spirit of the law. This shall be our mission.

During the past two years, the MPFA has started from scratch to build up the system step by step within the framework set out in the MPF legislation. Today, the system has shaped up well before our eyes. We now have a total of 20 trustees, 49 MPF schemes with over 280 constituent funds and a marketing corps of over 30,000 qualified intermediaries.

However, the hard work of the MPFA alone will not be sufficient to ensure the success of the system. We must rally the support of all walks of the community and encourage them to take an active part in the future development of the system. Moreover, employers and employees must work together hand in hand to make the best use of the system whilst fostering a spirit of partnership between them.

As the guardian of the system, the MPFA is highly conscious of the increasing challenges that lie in the years ahead. On the one hand, we must come to grips with the inevitable teething problems to ensure that the system is implemented as smoothly as possible. On the other hand, we must also ensure that the entire MPF industry serves the interest of the scheme members with the highest degree of dedication and professionalism. At the same time, the MPFA must spare no efforts to encourage a positive response from those who still have not made the effort to join the MPF System.

To conclude, the MPFA aims to consolidate the MPF System so that it provides support for Hong Kong's long-term social protection through a three-pronged approach, namely the prudent regulation of the MPF industry, sustained public education and publicity, and fair and reasonable law enforcement.

Lastly, I must express my heartfelt thanks to the trade unions, chambers of commerce, the Legislature, the District Councils, the SAR Government, various district organisations and the mass media for the support and assistance they have rendered to the MPFA. Their continued support and advice will be vital for the future development of the MPF System and the work of this Authority.

Thank you very much.

End/Friday, December 1, 2000