MR CHAN KIN-POR (in Cantonese): Chairman, I speak in support of clauses 13 and 14 of the Bill, because the two amendments concerned are evidently necessary. They seek to respectively revise the proposed cut-off date for the annual registration fee to 1 October this year and to bring the subsidiary to be established under the ambit of the Prevention of Bribery Ordinance.
However, Chairman, I hope you can give me a little time to respond to the wrong comparison of the return rates of MPF scheme made by Dr Fernando CHEUNG just now. Today, many Members often said in their speeches that MPF scheme should not continue because its investment returns have been unsatisfactory. I hope you can give me a little time to give a response to this notion. It will only take a minute or two.
Dr Fernando CHEUNG accused me of talking nonsense earlier. I have just crosschecked the relevant figures with the Mandatory Provident Fund Schemes Authority and the Hong Kong Monetary Authority (“HKMA”). The latest figures are as follows. As at 2019, the Exchange Fund has yielded an investment return of 3.5% over the past five years, instead of 6.0% as he said, and it already included the growth portfolio with a rate of return of over 10% as he suggested. But the rate of return on MPF scheme after deduction of administration fees in the same period is 4.2%―a rate of return of 4.2% over the past five years. Anyone would know that if an investment yields 4.2% of returns its performance is not too poor. Hence, may he please stop claiming repeatedly that MPF scheme suffered devastating losses. It is indeed not the case. Moreover, it is absolutely impossible to draw a comparison between the two funds he has referred to, because MPF scheme involve a great deal of administration work. Thousands of personnel are involved in processing such work. How can such a comparison be made? Therefore, I hope Dr Fernando CHEUNG can withdraw his comment that I talked nonsense, for he was the one talking nonsense. In addition, should he find it necessary, he is welcome to call Mr Howard LEE, Deputy Chief Executive of HKMA. Mr LEE will explain to him in detail that the figures he cited do not reflect the performance of the Exchange Fund. Thank you, Chairman.