Lawmakers in Hong Kong welcomed a new phase of the Mandatory Provident Fund (MPF) Full Portability scheme, which allows employees to transfer both their own contributions and those of their employers to a fund of their choice once a year. The first phase of the scheme is set to commence on December 21, providing greater flexibility for workers. In an interview with RTHK radio, lawmaker Chau Siu-chung expressed support for the arrangement, stating that it would enable workers to choose the best MPF trustee for them and foster increased competition, which could help reduce administrative fees. Chau also noted that many workers are unclear about the concept of full portability and called for efforts to enhance public understanding. During a Backchat session on RTHK, lawmaker Lam Chun-sing similarly welcomed the new scheme but advised workers against frequent changes in their schemes, as this could lead to high administrative costs and negatively impact returns. Lam emphasized that MPF is a long-term investment for retirement, and recommended that workers without the time or expertise to manage their schemes consider using the default investment strategy, which is designed to minimize risk and provide favorable returns through a diversified approach.
Chau, a non-executive director of the Mandatory Provident Fund Schemes Authority, highlighted the need for better public awareness of the full portability scheme, noting that around 80 percent of people were uncertain about what it means. He urged the government to simplify the information about different trustees to help workers make clear and informed choices. Lam, on the other hand, warned against the frequent switching of schemes, which might cause financial complications and diminish potential returns. Both lawmakers stressed the importance of long-term thinking in managing MPF contributions for retirement security.