Known as "Chamber CMG Choice," this unique product was created by the Chamber in an alliance with the financial services group, CMG Asia Ltd., and was officially approved under the MPF Ordinance by the government’s Mandatory Provident Fund Schemes Authority on Feb. 1. As of now, it is the only approved MPF Master Trust directly involving a local Hong Kong business or trade association.

From now until the formal start-up date for MPF schemes on Dec. 1 this year, it will be marketed to Chamber members and others interested in sound and reliable MPF coverage for their employees. Marketing is now being undertaken by the Chamber’s own team within Chamber Services Ltd., its commercial services company, and additional staff seconded from CMG Asia Ltd., the local arm of Australia’s Colonial group. All staff involved are licensed to market the MPF product.

The Chamber’s decision to enter the MPF market with a prominent partner was not taken lightly, nor without careful consideration of the needs of the Chamber and its membership. From the announcement of the initial concept, through the passage of the legislation, to the final go-ahead, the Chamber carefully monitored the progress of the MPF development. Indeed, it played an active part where it could in shaping the ultimate product. It will continue to monitor the performance of the Chamber CMG alliance in the years ahead.

With the government’s decision on the final starting date, the Chamber began looking around for potential partners in the MPF business. After a lengthy search process involving many MPF providers, the Chamber ultimately selected CMG Asia. The prime reasons for that selection were the experience of CMG Asia’s parent company in the Australian market (which is very similar to Hong Kong’s MPF), CMG Asia’s commitment to MPF in the SAR and the enthusiasm of the company’s senior personnel.

The decision places the Chamber in a very special position in the MPF market. As Chamber Director Eden Woon said in a media statement announcing the official approval of the Chamber CMG Choice product: "We are unique in the MPF market place. Chamber CMG Choice brings together the local business experience and reputation of the Chamber and the retirement fund expertise of an international financial services group.

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

As our Director has noted, there is every sign that the MPF market is shaping up to be a highly competitive one. I, therefore, also strongly urge you, as Chamber members, to support this Chamber initiative, which is aimed at bringing an attractive and competitive MPF service to Chamber members and other businesses in the SAR, especially small- and medium-sized enterprises seeking affordable coverage for all their employees.