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MPFA Chairman Dr David Wong published the final blog post in his six-year term today (28 February). He reiterated that the MPF is a suitable retirement protection system for Hong Kong. It does not only cover employees and employers in Hong Kong, but is also financially sustainable, making it effective in addressing the ageing population.

Dr Wong pointed out that given Hong Kong’s small and open economy, financial stability is of the utmost importance. The fully-funded defined contribution arrangement makes the MPF System financially sustainable, without relying on the Government, employers or employees to finance any shortfalls, or placing a burden on the younger generation in the face of Hong Kong’s ageing population. 

He said that the privately managed MPF schemes invest in various markets and assets, allowing scheme members to make a wide range of choices according to their stage of life and personal needs. Employees can enjoy automony in MPF investment, and all returns, net of fees and charges, are retained by scheme members, unaffected by the Government’s financial status or other social conditions. 

In response to voices concerning MPF fees and returns, Dr Wong said despite the MPFA has no statutory power to regulate fees except for Default Investment Strategy (DIS) and MPF Conservative Funds, the MPFA has been striving to enhance the transparency of fee and facilitate market competition. Futhermore, the MPF aims to provide employees with diversified investment choices while giving them a certain degree of control over investment risk. To this end, it would be a better choice to use mutual funds as an investment tool to mitigate risk. 

Dr Wong said that after operating for 20 years, the MPF System has become an important pillar of retirement protection for Hong Kong’s working population. He stressed that the MPF System has to continue to improve in order to embrace the challenges arising from the post-pandemic era, ageing population, slowing economic growth and market volatility. He expressed his gratitude to employees and employers for their participation, and said he is confident that the MPF System will accomplish its vision of becoming a retirement savings system that is valued by Hong Kong citizens.

For the full version of the article, please visit the MPFA blog. The blog is in Chinese only.

－Ends－

28 February 2021