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New moves for creation of CPF a backward step for HK

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WORKERS would be hit in more than their wallets if a Central Provident Fund (CPF), supported by a majority Legislative Council vote last week, were introduced by the Government.

Establishing a CPF would see a major shift of financial assets from the private to the public sector.

It would also signal a massive intervention by the Government into how employees spend their money and the overall workings of the Hongkong economy.

And it would see ultimate responsibility for financial protection in retirement moved from the individual to the state.

But the biggest initial impact on employees would be financial.

If a CPF were based on the recently issued government proposals for a mandatory private sector retirement scheme, five per cent of salaries would be paid to the Government.

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