After years of planning, the completion and implementation of the new eMPF system is in its final stages. The MPFA recently announced that the software development was completed last year, and that the goal is to gradually migrate MPF accounts to the eMPF platform between the second quarter of 2024 and the end of 2025. The implementation of eMPF heralds the digitalization era for the MPF, bringing significant benefits to members, employers, trustees and the MPFA, and enhancing the efficiency and reliability of the MPF system.
Lifetime single account managing all accounts
Once eMPF is fully implemented, plan members will be able to manage all their MPF accounts online and through mobile applications anytime, anywhere, while having real-time visibility of the status of all of their accounts. In other words, members will be able to review and adjust their investment portfolios using the eMPF platform. eMPF will also provide members with MPF-related notifications, documents, and reports, such as contribution confirmation notices and annual benefit statements. Administrative efficiency will be significantly improved, leading to lower fund charges and improved MPF performance.
Significant reduction in employer paperwork
For the employer, eMPF provides a one-stop platform for members to enroll in their MPF scheme and make contributions anytime and anywhere. As eMPF is an electronic platform, it greatly reduces paperwork and processes, as well as the potential for human errors, thereby enhancing employers' efficiency. This benefit is even more pronounced for employers who offer multiple MPF providers.
Facilitating industry consolidation among trustees
According to MPFA data as of January 2024, there are currently 12 MPF trustees using different administration systems. With the full implementation of eMPF, the administration systems will be streamlined into a centralized system. Analysts believe that the implementation of eMPF will facilitate industry consolidation as it reduces the complexity of integrating different trustees due to the reduced team size and standardized administrative work. There may also be opportunities for new market participants to join the MPF trustee industry, and smaller trustees may also consider consolidation to adapt to industry changes.
Improving efficiency and reliability of the MPF system
For the MPFA, eMPF can improve the efficiency and reliability of the MPF system, as well as promoting regulatory oversight of trustees and safeguard member interests. It can also facilitate future MPF reforms, such as the introduction of a fully free-choice MPF market and providing system support for the abolition of MPF offsetting. eMPF is a crucial reform measure for the MPF system, and there will be more news about the operation details of eMPF in the future. The industry will actively cooperate, introduce the system's operation to members, and provide educational effort to ensure the smooth implementation of eMPF.
