MPF Withdrawals Jump As More People Leave HK

Figures from the MPF Scheme Authority show there was a sharp increase in withdrawals late last year amid social unrest, with many account holders saying they were leaving Hong Kong for good.

Withdrawals exceeded HK$1.4 billion in the final quarter of last year, up 46 percent year on year.

The authority said it’s not sure how many people were involved in the withdrawals, and its executive director Cheng Yan-chee downplayed the notion that account holders were emigrating overseas, saying many of them could be leaving Hong Kong for the mainland.

"People just tell us they are going to leave Hong Kong permanently, so that's the only reason they need to give," Cheng said.

He then said that applications to withdraw MPF funds are handled by the trustees and not the authority.

The authority also noted that other reasons for MPF members to withdraw money early include early retirement and illness.

The MPF performed poorly in the financial year that ended in March this year, down 8.6% year on year at HK$868 billion. But the drop was still smaller than the fall after Sars in 2003 and the Asian financial crisis in 2008-09.