About half of the Mandatory Provident Fund (MPF) providers in Hong Kong eventually could withdraw from the market, according to the regional head of an insurance group.
Rex Auyeung Pak-kuen, managing director and chief executive of Principal International Asia, one of the 20 MPF trustees, said some competitors could leave the market because of high costs.
'This is a market in which the capital requirement is very high,' he said yesterday.
'I think about half of the players might find it too costly to operate in this market and withdraw eventually.'
Mr Auyeung said more than 4,000 employers with 40,000 employees had appointed Principal as their MPF provider. More are expected to sign before the December 1 deadline.
Principal had enhanced its facilities to deal with increasing enquiries about MPF schemes.
'We are also one of the first service providers to distribute an employer guide, so that our members will find it easier to administer their MPF schemes,' Mr Auyeung said.