Letters | As coronavirus crisis pushes Hong Kong job losses to new highs, let MPF offer a helping hand

The MPF Ordinance could be amended to allow the unemployed to redeem up to 50 per cent of their investments until the WHO declares the pandemic over. This would improve public perception of the scheme

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Closed shops covered with advertisements for rental space, in Mong Kok on March 13. Photo: Reuters

Published: 7:35am, 27 Apr 2020Updated: 7:35am, 27 Apr 2020

Secretary for Labour and Welfare Mr Law Chi-kwong has warned that “the local labour market will continue to face significant pressure from the economic fallout of the pandemic in the near term” and promised that “the government will closely monitor the developments, including the progress and effectiveness of the various relief measures”, in light of the fact that the March unemployment rate continued to climb and reached a nine-year high of 4.2 per cent

However, actions speak louder than words. I urge the government to consider a relief measure that would allow unemployed Mandatory Provident Fund scheme individual members to redeem up to 50 per sent of their investments accrued in the MPF until the World Health Organisation withdraws the global pandemic warning.

This timely act – of unlocking some of the preserved benefits from the personal accounts of unemployed individual MPF members – could restore some of the general public’s lost favour towards the long controversial MPF system, since its establishment in 2000.

As an economic storm is brewing, a “pandemic amendment” of the Mandatory Provident Funds Schemes Ordinance regarding the “preservation of accrued benefits”, as currently defined in the ordinance to be initiated by legislators, the MPF Authority or policymakers, would be cheered on by the working public.

The shrinking local economy during the pandemic will also be on the credit side of this move, as it will be releasing much-needed cash from the MPF system. As a former MPF Responsible Officer and practitioner, I strongly believe that the MPFA and MPF administrators will execute this promptly and efficiently.

Mike Cheung, Mid-Levels