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Timeframe

The Hong Kong system of Mandatory Provident Fund (MPF) schemes has been in place since 2000, with the new centralised ‘eMPF’ platform set to replace the day-to-day operations of much of the existing system from 2024.

Initial shortcomings

While Hong Kong was ahead of the curve in introducing a mandatory automatic enrolment by companies into pension schemes, a lack of market efficiencies led to high administrative costs and a complicated system for users, in a city with an increasingly fluid labour market and high levels of staff turnover.

Course correction

After years of operational challenges, Hong Kong is set to launch the eMPF platform to simplify administrative tasks and drive lower fees for savers.

Key lesson

Hong Kong’s new model illustrates the potential that can be achieved when public bodies with strong visionary leadership are able to drive new ways of working with private markets. By taking a measured view on how to prioritise the needs of savers, employers and the broader local economy a powerful new pension and savings system is able to emerge.