Latest news with #MandatoryProvidentFund
South China Morning Post
27-07-2025
- Business
- South China Morning Post
Number of millionaires in Hong Kong MPF doubles; assets hit US$178 billion: MPFA chair
Hong Kong's pension regulator said the number of millionaires in its scheme doubled as the total assets of the Mandatory Provident Fund (MPF) reached an all-time high of HK$1.4 trillion (US$178 billion) as of June, an increase of 130 per cent from 10 years earlier. In a blog post on Sunday, Mandatory Provident Fund Schemes Authority (MPFA) chairwoman Ayesha Macpherson Lau said around 125,000 MPF members had assets of more than HK$1 million, double the tally from five years earlier. The MPFA attributed its increase in assets to strong investment performance and voluntary contributions to the scheme. In addition, she said there were 27,000 MPF members who had HK$2 million in assets or more. 'The MPF is a long-term investment,' she said. 'With early planning and leveraging voluntary contributions, individuals can steadily build reliable financial reserves … for their basic retirement protection.' Established in 2000, the MPF is a compulsory retirement scheme covering more than 4.75 million members. It collects monthly contributions from employers and employees – each at 5 per cent of a worker's monthly salary – or up to HK$3,000 a month. Members can also make voluntary contributions; around 30 per cent of members were willing to do so. The MPFA's data showed that over 25 years, about 30 per cent of MPF members have made voluntary contributions of HK$520,000 each on average, on top of a HK$500,000 mandatory contribution per person. Assuming a participant who made voluntary contributions chose the default investment strategy, which has a diversified investment portfolio, they were projected to have total MPF assets of HK$3.4 million by 2040, double what was available to those who only made a mandatory contribution, Lau said.
Yahoo
25-07-2025
- Business
- Yahoo
Mandatory Pension Fund Marks a Decade of Transforming Hong Kong's Employee Benefits
Explore Hong Kong's employee benefits landscape with our comprehensive report. Delve into compulsory and private benefits, understand the role of the Social Welfare Department and Mandatory Provident Fund Authority, and gain insights into the regulatory framework. Perfect for strategic market decisions. Dublin, July 25, 2025 (GLOBE NEWSWIRE) -- The "Employee Benefits in Hong Kong (China SAR) 2025" report has been added to report provides in-depth industry analysis, information, and insights of the employee benefits in Hong Kong, including an overview of the state and compulsory benefits in Hong Kong, detailed information about the private benefits in Hong Kong, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Hong Kong's social welfare system provides cover to all residents in the event of disability, old age, death, unemployment, and sickness. The public pension pillar covers individuals in need of assistance. The occupational pillar, which is a compulsory defined contribution (DC) scheme, was launched in 2000, and the third pillar is a voluntary pension savings scheme. The Social Welfare Department (SWD) administers Hong Kong's non-contributory social security system, which includes the Comprehensive Social Security Assistance (CSSA) Scheme, the Social Security Allowance (SSA) Scheme, the Criminal and Law Enforcement Injuries Compensation (CLEIC) Scheme, the Traffic Accident Victims Assistance (TAVA) Scheme, the Support for Self-Reliance (SFS) Scheme, and Emergency Relief (ER). The main change to Hong Kong's social welfare system in the last decade was the introduction of the compulsory occupational pillar, the Mandatory Pension Fund (MPF). Before its implementation, any contribution to the occupational system was made Highlights The Social Welfare Department (SWD) and the Mandatory Provident Fund Authority (MPFA) are responsible for the functioning of the overall social security system. A person's national insurance contribution is determined based on their income. An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution. Employers in Hong Kong provide their employees with private retirement benefits via ORSO and MPF schemes. Scope It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen's compensation insurance, maternity and paternity benefits, family benefits, unemployment benefits, leaves and holidays, and private benefits It highlights the economic and regulatory situations relating to employee benefits in Hong Kong Reasons to Buy Make strategic decisions using in-depth information related to employee benefits in the country Assess employee benefits of the market, including state and compulsory benefits and private benefits Gain insights into the key employee benefit schemes offered by private employers in the country Gain insights into key organizations governing employee benefits market, and their impact on companies Key Topics Covered: 1. Executive Summary2. Introduction2.1 What is this Report about?2.2 Definitions3. Country Statistics4. Overview of Employee Benefits in Hong Kong5. Regulations6. State and Compulsory Benefits6.1 Retirement Benefits Introduction Eligibility Benefits Payment options Contribution 6.2 Death in Service Introduction Eligibility Benefits Payment options Contribution 6.3 Long-Term Disability Benefits Introduction Eligibility Benefits Payment options Contribution 6.4 Short-Term Sickness Benefits Introduction Eligibility Benefits Payment options Contribution 6.5 Medical Benefits Introduction Eligibility Benefits Payment options Contribution 6.6 Workers' Compensation insurance Introduction Eligibility Benefits Payment options Contribution 6.7 Maternity and Paternity Benefits Introduction Eligibility Benefits Payment options Contribution 6.8 Other Benefits Family Benefits Unemployment benefits Leaves and Holidays 7. Private Benefits7.1 Retirement Benefits7.2 Death Benefits7.3 Disability Benefits7.4 Medical Benefits7.5 Accidental Death and Dismemberment Benefits7.6 Other BenefitsFor more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
25-07-2025
- Business
- Business Times
iFast posts 37.9% rise in Q2 net profit to S$22.1 million
[SINGAPORE] Digital bank and wealth management platform iFast Corp reported a 37.9 per cent increase in net profit for the second quarter ended June to S$22.1 million, from S$16 million in the year-ago period. Earnings per share stood at S$0.0731 for Q2, up from S$0.0538 in the previous corresponding period. In a bourse filing on Friday (Jul 25), the company reported that revenue for the same period rose 23 per cent to S$103.3 million, from S$84 million previously. Interest revenue rose 74.1 per cent on the year to S$16.9 million in Q2. This brings the total revenue to S$120.2 million, up 28.3 per cent on the year. The directors of iFast have proposed a dividend of S$0.02 per share, up from S$0.015 per share in the previous corresponding period. The dividend will be paid out on Aug 21, after the record date on Aug 7. They expect to propose a total dividend of S$0.08 per share for the 2025 financial year, up 35.6 per cent from S$0.059 per share in FY2024. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Improved performance Earnings for the first half of 2025 rose 34.7 per cent to S$41.1 million, from S$30.5 million in H1 2024. This translates to an earnings per share of S$0.1368 in H1 2025, up from S$0.1028 previously. Revenue for the half-year period was up 19.7 per cent on the year at S$194.9 million. Interest revenue for H1 grew 90.7 per cent on the year to S$32.3 million. Total revenue was 26.4 per cent higher at S$227.2 million. The improvement in the group's bottom line came amid growth in its Hong Kong ePension business, a turnaround in iFast Global Bank, and continuing growth in its core wealth management platform business. The ePension division refers to its pension administration services. iFast's Hong Kong business saw a 33.4 per cent year-on-year growth in gross revenue to S$45.6 million in Q2. This came amid higher contributions from its ePension business and wealth management business. Profit before tax for the overall Hong Kong business grew 17.8 per cent on the year to S$15.7 million in the recorded quarter. iFast expects the ePension division to improve as the group continues to onboard the eMPF business. The eMPF platform aims to standardise, streamline and automate the administration processes of Hong Kong's Mandatory Provident Fund scheme. The group's global bank segment recorded a net profit of S$700,000 in Q2, compared with a loss of S$1.6 million in the previous year. For H1 2025, profit was at S$1.7 million, reversing from a loss of S$3.9 million in the year-ago period. Customer deposits grew 124.2 per cent on the year to S$1.5 billion as at the end of Q2 2025. The group's assets under administration grew 21.6 per cent on the year to a record of S$27.2 billion as at end June, as net inflows hit an all-time high of S$2.2 billion. iFast maintains capital regulatory ratios above the minimum requirement. The liquidity coverage ratio for the bank stood at 655 per cent, the net stable funding ratio was at 210 per cent, and the total capital ratio was at 24 per cent as at Jun 30. 'Over the long term, the group expects that its diversified mix of fee-based income, net interest income from its banking division, and prudent capital management strategies will support growth in return on equity,' said iFast. The group's return on equity in H1 was 24.6 per cent. It expects group revenue and profitability to show healthy improvement in the second half of 2025. Shares of iFast closed 3.4 per cent or S$0.26 lower at S$7.42 on Friday, before the results were released.
The Star
17-06-2025
- Entertainment
- The Star
HK actor Henry Lo, 67, leaves TVB after 27 years: 'The elderly deserve dignity'
Hong Kong actor Henry Lo Chun-shun says a successful livestream session in mainland China can earn one up to three years' worth of TVB salary. Photo: Sin Chew Daily Hong Kong actor Henry Lo Chun-shun made headlines in April after accusing TVB of cancelling several of his show appearances, which affected his income. The matter eventually drew a response from TVB general manager Eric Tsang, who said: 'No artiste can work in this industry forever.' At the time, Lo, 67, shared that his contract was nearing its end. Now, his name has been completely removed from TVB's artiste directory. In an interview with HK01, Lo confirmed that he has officially parted ways with the broadcaster after 27 years, saying there was no need for contract renewal discussions. 'As the contract neared its end, the company simply called me in to settle my Mandatory Provident Fund (MPF). Once everything was calculated, it was over,' he said. On whether he was disappointed with the decision, the State Of Divinity (1996) star answered: 'No, I've become indifferent. It felt normal to me.' Lo revealed that he has been filming commercials in mainland China recently and is now eyeing the livestreaming scene, noting that a single successful session could earn him up to three years' worth of TVB salary. The actor also shared that several of his elderly TVB colleagues are also preparing to make similar transitions. 'Of course, my life was affected by (the low income). Otherwise, I wouldn't have spoken up the way I did. It really disrupted my basic living expenses.' Describing the entertainment industry as 'ruthless,' Lo said many artistes tend to be forgotten quickly once they leave. 'I hope someone remembers me while I'm still alive. Old people also deserve dignity. Don't let others tear you down. My life is mine to arrange,' he added.
Straits Times
12-06-2025
- Business
- Straits Times
Hong Kong pension funds plan to cut Treasuries if US loses last AAA rating
Managers of the city's HK$1.3 trillion Mandatory Provident Fund system can only invest more than 10 per cent of their funds in Treasuries if the US has a top credit rating. PHOTO: REUTERS HONG KONG – Hong Kong's pension fund managers have formed a preliminary plan to sell down their Treasury holdings within as soon as three months if the United States loses its last recognized top credit rating, according to people familiar with the matter. Industry groups including the Hong Kong Investment Funds Association and the Hong Kong Trustees' Association discussed the proposal with the pensions regulator on June 11, the people said, asking not to be identified as the meeting was private. Under local regulations, managers of the city's HK$1.3 trillion (S$213 billion) Mandatory Provident Fund (MPF) system can only invest more than 10 per cent of their funds in Treasuries if the US has a AAA or equivalent rating from an approved agency. The downgrade of US sovereign debt by Moody's Ratings in May left Japan's Rating & Investment Information as the only remaining approved firm with the highest score. While R&I has said it isn't considering cutting its US rating, the Mandatory Provident Fund Schemes Authority in May urged pension fund managers to draw up 'contingency plans' in case of a downgrade. London Stock Exchange Group's FTSE Russell, which runs the MPF World Government Bond Index, a key benchmark that pension fund managers widely use for exposure to Treasuries, formulated an analysis of the divestment plan at the request of the industry groups earlier this month, according to the people. Ka Shi Lau, chair of Hong Kong Trustees' Association, said a deck of materials on the potential impacts and analysis was given to the regulator. Mr Lau also confirmed the June 11 meeting. Representatives from the MPF Schemes Authority and FTSE Russell declined to comment. The Hong Kong Investment Funds Association didn't respond to a request for comment. The situation highlights the risks of the US falling foul of the unusually strict investment mandates governed by Hong Kong regulations. The bulk of global investors don't require the top-tier rating to invest freely in US Treasuries, minimizing the risk of forced sales. While any potential forced sales in Hong Kong are unlikely to materially rock the global market for US Treasuries given its size and liquidity, it's a headache for portfolio managers who must contemplate an overhaul of their investment strategies. For funds focusing exclusively on government debt, options are limited given the lack of large issuers comparable to the US. Concerns about demand for long-end Treasuries have caused the yield on 30-year bonds to spike to some of the highest levels since 2023. An auction on June 12 will be closely watched for clues about investor appetite at a time when the Trump administration's tax-and-spending bill is expected to swell the nation's debt. Pension fund managers proposed to be given three to six months to rebalance positions in the event of a downgrade, the people said. Allocations would shift to other sovereign bonds of issuers with AAA ratings, and those with large market values, the people added. Germany and Singapore, which are in the FTSE index, are rated AAA by major agencies. Pension fund managers had earlier asked the authority to reconsider the rule. But the regulator pushed back with its request for trustees to develop contingency plans and make 'timely and orderly' adjustments to their asset allocations in response to possible market developments. The MPF, introduced in 2000, has more than 4 million contributing members, with various financial institutions managing funds under the system. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
