The Hong Kong General Chamber of Commerce in partnership with CMG Asia Limited officially launched its Mandatory Provident Fund product, Chamber CMG Choice, on Feb. 23 at the Hong Kong Convention and Exhibition Centre.

Speaking at the opening ceremony to over 250 attendees, Chamber Chairman CC Tung said with the introduction of Chamber CMG Choice, the Hong Kong General Chamber of Commerce becomes the only trade or business association to offer a specific MPF product to its members and others.

"In launching Chamber CMG Choice, the Chamber also takes a new direction in the types of services it offers its members," he said.

The product is the fruit of an exhaustive study and screening process that dates back to 1996. After consulting with members about whether they would be interested in the Chamber providing a MPF product, the Chamber analysed proposals from potential alliance partners for a specific MPF product and decided on CMG Asia.

"What impressed us, particularly about CMG, was its commitment to the Hong Kong market for MPF and its enormous experience in Australia and New Zealand in compulsory retirement schemes similar to our MPF, and its work with industry associations in those countries," he said.

Chamber CMG Choice is aimed at everyone in the market for an MPF product ?big business or small business. But Mr Tung said the Chamber is particularly intent on ensuring a product useful to small- and medium-sized companies, to help them to become MPF compliant as easily as is possible.

"What I want to stress to you here today is that the Chamber is ready to help you plan for the introduction of MPF to your business ?and, importantly, to your employees. We have the product ?Chamber CMG Choice ?and we have the people to serve you and make MPF introduction as painless as possible," he said.

Chamber Legislative Council Representative James Tien, who also spoke at the opening ceremony, said that as a former chairman of the Chamber, he was pleased to see it moving into new areas of service to members, especially difficult areas like MPF.

Despite the MPF framework being fully in place and the marketing underway, the MPF brings a new concept to the Hong Kong retirement scheme industry and there is still a lack of understanding at the grass roots about how it will actually work, he said.

"The Chamber has been attempting to help in this through its own in-house education programmes, workshops and seminars," Mr Tien said. "Now, it can help more directly by the introduction of its own MPF product."

He also said that the Chamber and its staff, together with CMG Asia, have put a lot of work into ensuring their MPF product is suitable to the market and suitable to Hong Kong SAR businesses.

"I therefore urge you to support Chamber CMG Choice, an important and unique addition to the range of MPF products now available in the SAR.

"By supporting this Chamber product you will not only be ensuring your business is MPF compliant come the Dec. 1 start-up date for MPF contributions, but you will be supporting 'Your Chamber' as well," he said.

CMG Asia Managing Director Gary Bennett told attendees at the launch that there can be few issues of greater concern to the business community at the moment than the introduction of the MPF.

Employers are naturally concerned about the implications of the MPF on operating costs, administrative workloads, productivity ?in short, all the things that impact on the financial viability of a business.

"It is a credit to the Chamber that it foresaw the need to enter into a partnership with a company that has the expertise and the knowledge to be able to assist the Chamber in responding to the needs of employers for information on MPF," he said.

The Chamber's decision to choose to partner with CMG Asia came as no accident. CMG's commitment to Hong Kong and to the success of the MPF is second to none, he said.

"At CMG, we are committed to providing comprehensive MPF solutions for the people of Hong Kong. Four separate MPF related entities are thus established to function as an MPF trustee, to provide professional advice, investment management and administration service to cater for the MPF needs of employers, employees and the other service providers," he said.

But, with all the best will in the world, commitment is only part of the story. It is experience and capability that count most in this industry and these are both areas in which CMG Asia has more than any of its competitors, Mr Bennett said.

"CMG is the only company currently operating in Hong Kong that has experience across all the aspects of operating in a compulsory pensions environment ? administration, product development and funds administration. That is why a bank as prestigious as the Standard Chartered chose CMG as partner of the bank's MPF business," he said.

Chamber CMG Choice is the ideal choice for companies, especially small and medium size companies, because these small businesses simply do not have the time or resources to necessarily understand all the complexities of the MPF, he said.

Also, smaller businesses will likely negotiate with their employees which MPF plan to adopt, with the result they will come under pressure from employees who, to be fair, may not necessarily understand the benefits or pitfalls of different MPF plans.

"The potential problems for small businesses in such a scenario are pretty obvious," Mr Bennett said. "Now, however, there is a clear option for them that will make their life a lot easier ?the 'Chamber CMG Choice'."