In response to government’s proposals on MPF reforms, the Commission on Poverty will be seeking public views on eliminating the provision on MPF offset as part of a public consultation exercise on universal retirement pension to be conducted at the end of 2015. The Business and Professionals Alliance for Hong Kong (BPA) strongly opposes the proposal to abolish the offset regime under MPF, which has been put forward without any due regard to the financial impact on businesses. Expanding welfare in a reckless and cavalier manner does not represent progress. Furthermore, it is ill-advised to raise the subject of offset abolition at this time as this could lead to the deepening of differences in an already divisive society.
The BPA is working closely with five of the major chambers, as well as the Employers’ Federation of Hong Kong on the issue. As part of its efforts to present a united business front, the BPA will be inviting the Liberal Party and six independent Legislative Council members to join the five major chambers, the Employers’ Federation of Hong Kong, small and medium enterprises (SMEs) representatives and other sectoral associations in discussions on the way forward.
Mr Andrew Leung Kwan-yuen, BPA Chairman, and Mr Jeffery Lam Kin Fung, BPA Vice Chairman, in their criticism of government said, “Policy flip-flopping is of little help in building a harmonious society. Operating costs and a business-friendly environment are important considerations for all companies. Policy bias towards employees often come with a heavy burden on employers and can be a deterrent to investment. In addition, the rise in cost of doing business could lead to a raft of closures especially among SMEs with knock-on effects on the wider economy. Ultimately, both employers and employees would suffer as Hong Kong pays the price for such folly.”
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