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The commencement date for MPF contributions should remain unchanged on December 1, 2000 as previously scheduled, members of the MPFA Management Board agreed at a meeting today (April 6).

The MPFA Chairman, the Hon. Charles Lee Yeh-kwong, said the MPFA had reviewed the readiness of the community, the industry and the MPFA itself and the conclusion was that all the parties concerned would be ready for the full implementation of the MPF System in December 2000.

The MPFA will recommend to the Executive Council on the commencement date and will propose to bring into effect all the other legislative provisions necessary for the smooth operation of the MPF System.

"Our economy is rebounding steadily from the economic downturn caused by the Asian financial turmoil. Assuming the economic recovery will continue as forecast, the economy would have experienced seven consecutive quarters of positive growth by the time when the MPF contributions start," said Mr. Lee.

Addressing the concern about the impact on the operating costs of the business sectors, the Chairman expected that most employers would be able to make suitable adjustments to their cost structures to absorb the impact by adopting more efficient production techniques and management practices.

And with 45 master trust schemes comprising 253 constituent funds available in the market, Mr. Lee believed that there were adequate choices in both service providers and MPF products for employers, employees and self-employed persons.

On the MPFA's readiness, the Board was confident that it would be fully ready to perform its regulatory functions by December this year.

The MPFA has put in place an effective regulatory framework for both MPF schemes and MPF intermediaries together with the other financial regulators in Hong Kong, namely the Hong Kong Monetary Authority, the Securities and Futures Commission and the Insurance Authority.

It has established working relationships with the Department of Justice and the Police as part of its preparatory work for undertaking law enforcement actions after the launching of the MPF System.

On the public education front, the MPFA has started a multi-facet campaign with the assistance of various Government bureaux and departments to raise public awareness and understanding of the MPF System and pave the way for the smooth implementation of the System by December.

A territory-wide operation will be conducted in June to reach out to more than 50,000 shops in 18 districts. Shop owners will be given a package of publicity materials to help them understand the MPF System. By mid-August, the MPFA will join hands with the Trade Development Council to mount a large-scale exhibition at the Hong Kong Convention and Exhibition Centre, bringing together all major MPF service providers to display their products.

Board members were also updated on the latest progress of the processing of MPF exemption applications from employers operating retirement schemes under the Occupational Retirement Schemes Ordinance.

As at April 5, the MPFA received a total of 2,129 such applications for schemes covering 112,000 employees. It is expected that there will be a surge of applications in the run-up to the May 3 deadline.

– Ends –

6 April 2000