THE Hong Kong General Chamber of Commerce has criticised the Government's proposed old-age pension scheme, saying it will be unnecessarily universal and a heavy financial burden on the Government and business community.
The chamber said the pension scheme would only exacerbate the situation by increasing costs at a time when rising costs are forcing businesses to consider other Southeast Asia centres.
The growing number of business organisations which now oppose the pension scheme include the Chinese General Chamber of Commerce, the Employers Federation of Hong Kong, the Chinese Manufacturers Association and the Federation of Hong Kong Industries.
Hong Kong General Chamber assistant director and chief economist Ian Perkin said businesses would face an additional three per cent impost directly and might come under pressure to pay the employee contribution or increase real wages to cover the contribution.
The Government proposed the pension scheme in October. The scheme would require employers and employees to contribute a percentage of an employee's monthly income to a pension fund.
The Government has suggested that the scheme could be a universal contributory scheme, providing an index-linked pension at 30 per cent of the median wage, or $2,100 a month.