HKRSA & MPF – then, now and the future. A personal reflection from Jonathan Watkin

With the 30 year Anniversary this year of the formation of Hong Kong Retirement Schemes Association, it is a good time to reflect on the past achievements and the future. It is also just over 25 years since the Mandatory Provident Fund (MPF) commenced.

When I first started out in superannuation, working for an employee benefits consultancy, Alexander Consulting Group (later part of AON), a Hong Kong Chinese student at Macquarie University in Australia where I was enrolled on an MBA course, came to me in 1997 and said they are starting up a new pension system in Hong Kong, called the MPF, why don’t you move there. I thought that sounds interesting, would like a break and so off I went to join HSBC Provident Fund Services, reporting to Greg Willis, a fellow Aussie and a lawyer by background (his father was Sir Eric Willis, former Premier of NSW). That move went well, but as with any new system, some turbulent times. Quite a bit of similarity with the Aussie superannuation system, but without the level and complexity of tax, although a number of employers and the public were generally not overkeen at first on what they basically saw as an administrative burden and the compulsory contributions a form of tax. Anyway, it did proceed as a privately managed system with many trustees and service providers, becoming operational in December 2000, and being well regulated by the Mandatory Provident Fund Schemes Authority (MPFA). My earliest days in pensions in UK and then Australia at the time of the start-up of the Superannuation Guarantee in early 1990’s, helped in my new but related venture in Hong Kong. That experience included being on a committee with the Association of Superannuation Funds (ASFA) and completing courses, such as in trusteeship, equipped me well for later roles, such as being on the board of a trustee and custodian.

A particular role which I look back with fond memories and pride, is being on HKRSA committees and Director of the Secretariat. A lot has been achieved by the association over the years, not least internationally engaging with ASFA, National Association of Pensions Funds (UK), World Pensions Council (based in Paris), and the setting up of the Cross Straights Forum, with one particular honor for our committee members being invited to the Government Diaoyutai State Guesthouse in Beijing for a pension dialogue. We also held or jointly organized numerous events with visiting international pensions experts and associations/institutes. HKRSA became known as the major independent and neutral body in Hong Kong representing MPF and ORSO (the older voluntary system).

The regular luncheon gatherings at the Hong Kong Club or Club Lusitano were a highlight for face to face networking and exchanging of views, typically with a presentation on investments, pensions or economic trends.

Also, the annual ‘fun’ dinners such as the 15th Anniversary Gala Dinner “Rock n’ Roll to Retirement” at the lovely Aberdeen Club.

And others, such as laughing at the 17^th Anniversary Gala Dinner! …

HKRSA introduced in the early MPF days training and education for those involved at the service provider or employer level, in collaboration with HKU SPACE. Also, in collaboration with the Institute of Human Resource Management (HKIHRM).

Committee Members in 2004 at an event. From Left to Right, Stuart Leckie-Founding Chairman, David Humphreys-Chairman, Keith Yuen-Treasurer and Cynthia Chung-Legal Advisor

The various committees provided a good forum for following through on various initiatives, such as regular meetings with MPFA and the release of the paper; “Building a Stronger Retirement Pillar for Tomorrow’s Retirees - Looking Beyond the First 15 Years of the MPF System”, in December 2015.

Myself with Donna Yiu from the HKRSA Secretariat, 2005

On a more personal level, being involved with the Institute of Financial Planners (IFPHK) including on a panel for SCMP/IFPHK annual awards, was an honour to support the enhancement of financial planning in Hong Kong (and later on the HKU SPACE course review committees).

SCMP produced an article from me entitled “MPF a bumpy ride for long-term investors” in June 2009, a bit of deja vu to current times and what can happen anyway for such investments.

The Hong Kong General Chamber of Commerce interviewed me in January 2009, and quoted “short-term you have to avoid switching funds on a regular basis. You just have to keep your head on and think long-term”. Again, still stands today.

AsianInvestor held an event in September 2006 on; “The future of Hong Kong’s retirement system”, which I chaired, with various people quoted in a news story, some of whom were critical that individuals could not choose their fund manager, need for improving of data etc, which has been discussed further or addressed since then.

CFA Magazine quoted me in Sept-Oct 2008 on the CFA Institute Centre’s Working Party relating to pensions for OECD of which I was a part; “the code is an important step in setting out and clarifying ‘individual’ trustees responsibilities….it is also a valuable supplement to existing pension trustee and governance systems around the World”. So important then as it is of course now and into the future.

ASFA’s SUPERFUNDS magazine, quoted me in August 2008 on Australian superannuation fund global investments; “I think there has been a fair amount of misunderstanding about what is happening in the (Asia) region and this is borne out of a lack of information…” How has it been since then?

Producing four books over the years on MPF and Retirement Savings (three of which were in English and Chinese languages) also became a passion, which had various contributors or sponsors, including acknowledgement and thanks from The Chief Secretary for Administration in 2017.

Another followed for the 20^th Anniversary for MPF, with the primary purpose of providing information and education to the public…

MPF has certainly developed over the years, with more recently the introduction of eMPF, and now a massive $1.55 trillion AUM.

So, here is to the past and future growth. Happy anniversary HKRSA and MPF. Let the good times roll and look forward to bright and prosperous years ahead!

Finally, a thanks to all of those I have known over the years, in Hong Kong (where I am still based) and geographically. Too many people to list!

Jonathan Watkin

 1^st June 2026