The Mandatory Provident Fund (MPF), is a compulsory saving scheme (pension fund) for the retirement of residents in Hong Kong. It was implemented in December 2000. Most employees between 18 and 64 and their employers are required to make monthly contributions to the mandatory provident fund scheme.
MPF Withdrawals Increased
Recently, the Mandatory Provident Schemes Authority (MPFA) released its latest quarterly report of the MPF Schemes Statistical Digest up to June 2022. In the second quarter of 2022, the number of claims for withdrawals from MPF based on permanent departure from Hong Kong was 8,600, an increase of 14.7 percent quarter-on-quarter and a year-on-year increase of 7.5 percent.In monetary terms, total withdrawals involved were HK$2.114 billion (US$269.3 million), a quarter-on-quarter and a year-on-year increase of 5 percent and 0.9 percent, respectively.
In addition, in the second quarter of 2022, the total number of cases for withdrawals from MPF for various reasons (including retirement) was 52,700, a quarter-on-quarter increase of 12 percent.
BN(O) Passport Can’t Support Claim
On the MPFA’s point that permanent departures from Hong Kong are also different from the number of emigration cases, it can be shown that the number of MPF withdrawals is much fewer than permanent departures. The actual number of MPF settlements is never going to be the same as people leaving Hong Kong as many will be youngsters, that have never opened an MPF account, also the MPFA does not accept the BN(O) passport to support a withdrawal claim.Citizen Outflow Higher than MPF Withdrawals
According to HK Gov. Mid-year Population for 2022 report, the Hong Kong population reduced from 7.413 million in June 2021 to 7.291 million in June 2022, a reduction of 121,000. It was reported that there was a net natural reduction of 26,000 (deaths minus births), and there was a population outflow of 113,000. From this, it can be deduced that a net citizen outflow of 95,500 took place during the one-year period (121,000 less 26,000)—an average of 23,875 each quarter which is much higher than MPF claims.From the government statistics on labour, the HK labour force overall reduced from 3.892 million in the second quarter of 2021 to 3.745 million in the second quarter of 2022, a reduction of 147.500. In the same period for people between 15 and 44 years old employment reduced from 1.858 million to 1.765 million, a reduction of 93,000—a similar number to the permanent departures from HK.