Hong Kong citizens: What government scheme?
A Bank of East Asia survey revealed that only 47 percent of respondents have heard of MPF Portability Scheme. Of those, 78 percent knew some details.
The MPF Portability Scheme, which aims to increase employees' control over their MPF investments by providing them with greater choice in terms of MPF scheme, will take effect in 2011.
This survey was conducted in late August 2009 by Bank of East Asia’s Mandatory Provident Fund Administration Centre and involved telephone interviews with 1,000 BEA customers, who were asked about their perceptions of the MPF Portability Scheme and their intention, if any, to transfer MPF assets between service providers.
Among the respondents who have knowledge about the measure, 26 percent of them said they would transfer their MPF assets to other trustees, while 29 percent would not consider this option, and 45 percent were undecided.
The survey also revealed the major factors motivating members to transfer MPF assets. Fifty-two percent of all respondents said investment returns were important, followed by fees, 20 percent, and the trustee’s background, 17 percent.
Approximately 5 percent of the respondents stated that they were motivated by the choice of fund while a similar percentage indicated that service quality was a major factor.
"The MPF Portability Scheme not only provides greater flexibility for MPF members to transfer their assets, but it also creates opportunities for service providers to capture new business," said Mr. Patrick C.M. Li, BEA's Head of MPF Business at the Mandatory Provident Fund Administration Centre.
"The findings of our survey provide valuable insight into customer needs and preferences. As a leading MPF service provider in Hong Kong, we at BEA will continue to study the needs of our scheme members to ensure that we consistently deliver outstanding value and investment returns," he added.
BEA is one of only two trustees authorised to offer both the Master Trust Scheme and Industry Scheme in Hong Kong.
