Key Takeaways
- • PCCW Solutions, owned by Richard Li, has won the tender to build a centralised digital platform for Hong Kong's Mandatory Provident Fund (MPF), according to the MPFA's announcement on January 29, 2021.
- • The HK$1 trillion (US$128.2 billion) MPF scheme serves 4.3 million members, and the eMPF project aims to standardise, streamline and automate scheme administration, creating room for fee reduction.
- • The contract comprises a two-year implementation period and a seven-year operation and maintenance period, extendable by up to three years.
- • The platform could be built as early as end-2022 and become fully operational in 2025 if development stays on schedule.
- • Singapore's iFAST Corporation is the prime subcontractor for transferring member data from MPF trustees to the platform.
Summary
Hong Kong's PCCW Solutions, a unit of the group owned by tycoon Li Ka-Shing's son Richard Li, has won the tender to develop a centralised digital platform for the Mandatory Provident Fund, according to Asia Asset Management (AAM). The Mandatory Provident Fund Schemes Authority (MPFA), the industry supervisor, announced the winning bidder in late January 2021. The tender was opened in December 2019 as part of plans to automate administration of the city's largest retirement scheme, which had HK$1.021 trillion in total assets as of September 2020 and 4.3 million members. The scheme was launched in 2000.
The contract covers a two-year implementation period followed by a seven-year operation and maintenance period, with an option to extend by up to three years. According to the MPFA, the platform could be built as early as end-2022 and become fully operational in 2025 if development progresses as scheduled. The MPFA said the initiative aims to standardise, streamline and automate MPF administration, creating room for fee reduction and a predominantly paperless experience. The authority has formed a wholly-owned subsidiary, the eMPF Platform Company, to coordinate preparatory work and operate the platform.
Singapore's iFAST Corporation is a subcontractor on the project. Although the MPFA did not name the firm, iFAST said in its own statement on January 30 that it would act as prime subcontractor in transferring members' data from MPF trustees to the platform. PCCW Solutions, which provides digital transformation, cloud computing and artificial intelligence services, had not publicly commented, and its spokespersons did not immediately respond to AAM's questions. People familiar with the matter told AAM the tender drew four bids from Hong Kong, Indian, Chinese and Canadian technology and financial services companies.
The MPFA said legislation governing the MPF must be amended to designate the eMPF for administration processes and define the roles of the government, the MPFA and trustees. It expects the amendments to be introduced to the Legislative Council in the second quarter of 2021. David Ashton, chief executive of Principal Trust Company (Asia), an MPF manager, described the eMPF as an important initiative for improving Hong Kong's retirement system and said Principal looks forward to partnering with PCCW, the government and industry stakeholders.
The contract covers a two-year implementation period followed by a seven-year operation and maintenance period, with an option to extend by up to three years. According to the MPFA, the platform could be built as early as end-2022 and become fully operational in 2025 if development progresses as scheduled. The MPFA said the initiative aims to standardise, streamline and automate MPF administration, creating room for fee reduction and a predominantly paperless experience. The authority has formed a wholly-owned subsidiary, the eMPF Platform Company, to coordinate preparatory work and operate the platform.
Singapore's iFAST Corporation is a subcontractor on the project. Although the MPFA did not name the firm, iFAST said in its own statement on January 30 that it would act as prime subcontractor in transferring members' data from MPF trustees to the platform. PCCW Solutions, which provides digital transformation, cloud computing and artificial intelligence services, had not publicly commented, and its spokespersons did not immediately respond to AAM's questions. People familiar with the matter told AAM the tender drew four bids from Hong Kong, Indian, Chinese and Canadian technology and financial services companies.
The MPFA said legislation governing the MPF must be amended to designate the eMPF for administration processes and define the roles of the government, the MPFA and trustees. It expects the amendments to be introduced to the Legislative Council in the second quarter of 2021. David Ashton, chief executive of Principal Trust Company (Asia), an MPF manager, described the eMPF as an important initiative for improving Hong Kong's retirement system and said Principal looks forward to partnering with PCCW, the government and industry stakeholders.
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