Erica Yuen: “I Don’t Even Look at My MPF Returns” — Says Scrap the System

This article is a rewrite of a report from October 2012.

Public reaction to MPF semi-portability was broadly lukewarm — people didn’t even care about their own monthly MPF contributions. Former Miss Hong Kong turned politician Erica Yuen said she “didn’t even look” at her MPF returns — “it hurts just to see them.” Charges were too high, she said; she wouldn’t switch after semi-portability, and the MPF system should be scrapped.

Why was Yuen so angry?

High fees, poor returns — not switching, and wants it scrapped. Yuen said MPF charges were excessive, so she wouldn’t change schemes or providers under semi-portability; she went further, saying the system should be abolished. “Don’t even look” captured many workers’ feelings: not apathy, but helplessness.

What did a veteran commentator say?

Returns follow the portfolio, not the provider. A veteran stock commentator said switching required researching which scheme had better returns — “but no time lately”; she’d only consolidate preserved accounts, not switch yet. Her sharp point: returns depend on investment allocation choices, not the MPF company — “every firm’s returns are poor.”

What did a bank economist say?

Interested, but not first in line. A bank’s chief Hong Kong economist said he had several old preserved accounts unconsolidated (though the balances were “peanuts”); he was interested in switching after semi-portability but needed to study providers’ and managers’ past returns first — with limited market data available, he wouldn’t move at launch. Still, he expected fierce interbank competition: “steady commission income plus millions of workers — a prime ‘pork belly’ for the industry.”

What is the lesson from 2012?

Indifference is the system’s biggest indictment. The 2012 story’s real sting wasn’t who complained but “broadly lukewarm”: when even monthly contributors don’t care, the system has failed. MPF returns don’t depend on which company you pick but on your portfolio — a truth spoken plainly back in 2012.