The retirement protection initiatives outlined in the 2017 Policy Address are the result of the Government's first systematic citywide review on the issue since the establishment of the Hong Kong Special Administrative Region in 1997.
Chief Secretary Matthew Cheung made the statement today at a press conference with other principal officials to elaborate on Policy Address initiatives.
He said the proposal to progressively abolish the Mandatory Provident Fund's offsetting mechanism is to balance the interests of employers and employees.
Mr Cheung said there will be a 10-year transition period for employers to adapt to the change, and to adjust their staff deployment if necessary.
"This is unprecedented and the Government is prepared to shoulder the responsibility given the unique circumstances of the case. We will bear in mind the affordability of the many small- and medium-sized enterprises in Hong Kong."
Following the MPF change, the Government’s next target is to develop an electronic system to facilitate the standardisation and automation of the scheme administration.
Secretary for Financial Services & the Treasury Prof KC Chan said the "eMPF" will lower the operating costs of MPF providers, allow employers and scheme members to deal with MPF matters more conveniently and efficiently, and provide scheme members with more flexibility and better services.
Secretary for Food & Health Dr Ko Wing-man highlighted the provision of an additional $2 billion in funding for the Hospital Authority in 2017-18.
He said the Government will increase recurrent funding to the authority to meet the challenges of an ageing population and the public's rising expectations.
