Why Did Both Labour and Business Oppose Higher Contribution Limits?

What happened in June 2011?

A 20 June 2011 report: raising both MPF income floors and ceilings drew fire from both sides. Business: SME association honorary president Ng Wang-bun slammed the MPFA for hiking ceilings without fixing high fees and low returns — only fund houses benefit; higher contributions hurt competitiveness, and employers couldn’t cope in a downturn: “how can business support this incompetent government — bosses should march.” Labour: HKCTU’s Cheung Lai-ha said low earners waited half a year till November for exemption — too long; the Federation of Trade Unions’ Lee Fung-ying said small contributions and low returns let fees devour pots.

What’s the lesson?

Whatever the limits, fund choice is the one thing workers control — at MPF fund comparison.