Hong Kong’s regulator scraps plan for first-time buyers to use pension for their homes
Mandatory Provident Fund Schemes Authority will also submit review before government suggesting upper limit on total contributions be raised to HK$4,800 a month
The Mandatory Provident Fund Schemes Authority, Hong Kong’s pensions regulator, has shelved a study into allowing first-time homebuyers to withdraw money from the compulsory retirement scheme. It fears this would escalate the city’s already overheated property market, according to a senior executive.
The authority was considering whether it should allow the 2.8 million employees and self-employed people in Hong Kong covered by the city’s Mandatory Provident Fund to use their contributions for purposes other than their retirement protection. This included the option of allowing first-time homebuyers to withdraw money for buying properties.
“However, we have now decided to shelve this study, as the property market is still overheated,” said Cheng Yan-chee, chief corporate affairs officer and executive director at the MPFA. Hong Kong home prices rose for 24 consecutive months as of the end of March.
“If we were to allow first-time buyers to use their MPF contributions to buy properties, it would be against government policy. We have thus decided to not continue with the study. And there is no timeline on when we would consider such a study again,” said Cheng.
