Hong Kong’s Mandatory Provident Fund system had assets of HK$1.34 trillion as of the end of March, the Mandatory Provident Fund Schemes Authority said in its 2024-25 annual report.
Mandatory contributions accounted for HK$67.89 billion, or 75 percent of total contributions, while voluntary contributions reached HK$20.09 billion, or 22 percent.
Some 3.5 million MPF accounts – roughly 31 percent of all 11.3 million accounts – invested in the Core Accumulation Fund and Age 65 Plus Fund under the default investment strategy, representing HK$138 billion, or 10.3 percent of total MPF net assets.
In efforts to pursue unpaid contributions, the MPFA inspected 1,441 employment establishments, issued 399,700 payment notices in respect of suspected MPF default contribution cases, and successfully recovered a total of HK$191 million in default contributions and surcharges for 108,400 employees.
Financially, MPFA revenue rose 44.8 percent year-on-year to HK$684 million, while expenses increased 36.4 percent to HK$871 million, resulting in a net deficit of HK$187 million, compared with HK$166 million in the previous year. As of March, the authority’s capital and reserves stood at HK$1.89 billion.
During the year, the MPFA conducted over 220 stakeholder engagement activities, reaching out to more than 22,000 employers and scheme members and encouraging them to register with and use the eMPF platform.
MPFA chairwoman Ayesha Macpherson Lau said the platform has generally operated smoothly since MPF trustees and schemes gradually joined from June 2024.
The annual report also highlighted the latest development regarding the expansion of the MPF investment landscape for 2024-25. It includes the MPFA’s plans to allow MPF funds to invest in real estate investment trusts listed on the Shenzhen Stock Exchange and the Shanghai Stock Exchange while lifting the investment limits for REITs that are listed on approved exchanges in five markets, namely Singapore, Japan, Canada, France, and the Netherlands.
STAFF REPORTER
