Can plan to scrap MPF offset mechanism move by Lunar New Year? Unlikely, Hong Kong’s business sector says
Long-awaited proposal, introduced in the last administration, still requires more data and consideration of economic impacts
Hong Kong’s business sector on Monday expressed scepticism over a Lunar New Year time frame being observed for progress on a long-awaited government proposal to stop employers from dipping into workers’ pension funds for severance and long-service payments.
Jimmy Kwok Chun-wah, chairman of the Federation of Hong Kong Industries, poured cold water on the government’s plan to move on scrapping the much-criticised Mandatory Provident Fund (MPF) offsetting mechanism by February next year.
Chief Secretary Matthew Cheung Kin-chung earlier said the government expected to achieve progress on the plan. Last year, HK$3.85 billion was offset by employers – up a staggering 70 per cent from HK$2.27 billion in 2012.
‘Scrap MPF offset mechanism now or expect no change in Hong Kong status quo’
“We are still working hard on it. When we get hold of enough relevant data we’ll contact the labour and business sectors for discussion ... I believe that there must be some kind of progress around the Lunar New Year,” Cheung said.
He stressed that the government had to take into account the impact on small and medium-sized enterprises and how the move would affect the city’s business environment.
Cheung said one way was to set out a savings scheme to assist small businesses to cope with additional expenditure.
