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OpinionLetters

Letters to the Editor, June 29, 2017

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The proposal by Chief Executive Leung Chun-ying’s government for MPF reform represents a sensible ­compromise. Photo: Sam Tsang
Letters

MPF reform a welcome move from CY Leung

Any analysis of the Mandatory Provident Fund (MPF) Scheme has concluded that its primary weakness is the offsetting process. This offsetting seriously dilutes MPF savings for many employees. In particular, it hurts the lower-paid employees that most need the support of MPF.

The Business and Professionals Federation (BPF) has always believed that any solution to this problem required concessions by the employers and from the employees, and a contribution of government funds. The proposal by Chief Executive Leung Chun-ying’s government is a sensible compromise along these lines.

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Some business chambers have responded by saying that society must reach a consensus. But, their proposal shows no willingness to compromise.

They do not seem to appreciate that failure to reform MPF will bring back calls for “universal pension” – a very poor idea for business. The unions, which should be pleased with Leung’s proposal, are still negative.

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At the BPF, we strongly support Leung on this. The ­offsets must go in ­order to make MPF viable for most Hongkongers. At times the government cannot rule by consensus – it must make a decision. This is a good decision for Hong Kong.

Victor Apps, chairman, Study Group on Retirement Protection, Business and Professionals Federation of Hong Kong

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