CHAMBER LAUNCHES UNIQUE MPF PRODUCT

Chamber CMG Choice, a unique Mandatory Provident Fund (MPF) product provided by the alliance between the Chamber and CMG Asia, will offer free "Long Service Payment" insurance coverage to companies for the first two years that they join the scheme.

Designed for the Chamber's 4,000 corporate members, the product is nevertheless open to all businesses and self-employed persons in Hong Kong, whether they are big or small operators, Chamber members or not. Chamber CMG Choice is the only MPF Master Trust product to directly involve a local trade association.

Approved for sale by the MPF Schemes Authority on February 1, the product was officially launched yesterday and guests at the launch ceremony included the Chamber Chairman C C Tung, the Chamber's Legco representative the Hon. James Tien, Managing Director of CMG Asia Gary Bennett, Director of MPF and Corporate Sales of CMG Asia Julia Wong and the Chamber Director, Dr Eden Woon.

Chamber CMG Choice is designed to be as simple and convenient for companies, especially small and medium sized enterprises, as possible. To achieve this purpose, only one charge will be levied which is inclusive of all related fees such as administration, custodian, trustee and investment management. No additional charges will be made.

Chamber CMG Choice should have broad appeal in the local business community as the Chamber's direct involvement brings a new dimension an MPF product,

Although the Chamber involvement in Hong Kong is unique, it is common for trade and business associations to be involved in other markets with compulsory retirement schemes like that being introduced in the SAR.

Australia and New Zealand are prime illustrations, where CMG Asia's parent company works closely with various business and other associations in serving 3 million scheme members under a compulsory pension environment.

The Chamber alliance with CMG Asia, the local arm of Australia's Colonial Group, was formed after lengthy research into the MPF market. A Chamber CMG Choice sales force is already in place and has begun marketing the product.

"We are unique in the MPF market place," Chamber Director, Dr Eden Woon said.

"Chamber CMG Choice brings together the local business experience and reputation of the Chamber and the pension administration expertise of a diversified international financial services group.

"A pooled fund, master trust scheme, it is the only MPF product involving a local business or trade association with a commercial insurer having years of experience in retirement scheme products in Australia and elsewhere.

"We believe the new venture will provide a vital service to our Chamber members who are now faced with making a decision on introducing a compulsory retirement fund scheme to provide financial security for their employees in their retirement.

"I urge all Chamber members to support the Chamber CMG Choice product which aims to make the introduction of the MPF to their businesses as simple and seamless as possible," Dr Woon said.

Chamber Services Ltd, the commercial arm of The Hong Kong General Chamber of Commerce, is marketing the new Mandatory Provident Fund (MPF) product to Chamber members and other businesses in the SAR.

The company has already recruited new and highly experienced staff to market the scheme to Chamber members and others, along with additional representatives seconded from CMG Asia. All are licensed to market the MPF product.

Chamber Services Ltd will effectively provide a "one stop shop" solution for Chamber members and other businesses seeking to put in place a mandatory provident fund scheme from the presently scheduled start-up date of December 1 this year.

"It is already clear the Mandatory Provident Fund business will be extremely competitive," Dr Woon, said, "but we believe we are in a unique position with unique product that will be attractive to our members and a tremendous success."

For further information, please contact:
Ian Perkin HKGCC 2823 1242
Julia Wong CMG Asia 3183 2102