MPF mechanism abolition to better protect workers, CE says

The cancelation of the offsetting mechanism under the Mandatory Provident Fund (MPF) is expected to improve retirement protection for over three million workers in the city, Chief Executive John Lee Ka-chiu said in a social media post on Thursday.

This came as a piece of legislation took effect on Labour Day to abolish a controversial arrangement that used to allow employers to tap into staff pensions to cover severance and long-service payments.

At the same time, the government launched a HK$33 billion subsidy spanning across 25 years to help share part of the costs after the transition, Lee said, which aims to encourage employers to improve workplace conditions and protect employees’ rights.

The city leader also met with airport ground crew members to learn about freight operations and their daily work. He praised them for their dedication and professionalism for keeping the airport ranked as the world’s busiest cargo hub.

He also showed appreciation for workers across various industries in Hong Kong, saying they laid the foundation for the city's development.

Regarding the recent US tariff actions, Lee said while they have disrupted global supply chains, Hong Kong will strengthen seven key strategies in response to the tariff war that presents the city with both risks and opportunities.

The strategies include fully leveraging national development opportunities; enhancing international and regional cooperation; accelerating industrial upgrading; boosting technological innovation; and promoting global financial partnerships.

(Jamie Liu)