Why Call MPF a Regressive Tax and Government-Business Collusion?

What did columnist Wong Pit argue in 2011?

In a February 2011 Hong Kong Economic Journal column, Wong Pit called MPF “naked, risk-free government-business collusion”: the state forces citizens to buy funds from financial institutions at fees multiples of market rates. He sorted collusion into three types: mislabelled (petrol-station competition is actually fierce), skill-based (Cyberport’s developer still took risks), and naked risk-free — MPF was the third: compulsory whatever your circumstances, with above-market fees.

How bad were the fees?

Average MPF charges were 2.08% a year in 2007; three years of media and lawmaker pressure cut them only symbolically to 1.92% — still pricier than many retail active funds. Citizens were fleeced, unable to invest in anything of their choosing.

How can workers protect themselves?

The system won’t change soon — choose low-fee, well-performing funds instead, starting at MPF fund comparison.