The battle for initial market share during the infancy of the MPF established the major players almost overnight and in the past two years major company MPF accounts have not switched providers.
Principal International (Asia) managing director and chief executive Rex Auyeung Pak-kuen says a survey by his company found just 3 per cent of employers indicating they might consider switching providers. Reports from other industry leaders suggest the market is very much where it began in terms of employers signed up with providers. Of course, individual members changing or losing jobs has led to accounts being moved or transformed to preserved accounts. But company accounts have stayed where they first landed in the early days of MPF.
'Some of the predictions by the experts two years ago have turned out to be quite accurate,' Mr Auyeung says.
'Whoever got whatever market share has retained it with little change, but now the name of the game is customer service and through that there will be some movement.'
It could take the form of some corporate customers switching providers, or the providers themselves changing their operations, possibly by outsourcing some service operations.
'All the big talk about investment return is ongoing, but there is also the second factor people must consider which is customer service. On average, Hong Kong people are now a lot more knowledgeable about what MPF is all about, what they should get, what they should not get. MPF customers are starting to demand more services which is good,' he said.
'I have been saying all along that measuring everything by investment performance alone is a bit risky, because there is always something else to consider.'
