Business Groups Take Out Ad To Oppose MPF Plan

Around 100 business groups took out a newspaper advertisement on Monday to oppose the government's plan to stop them from using money in their workers' MPF accounts to make long-service and severance payments.

The Business Community Joint Conference says in the advert that the move would prevent young people from setting up their own businesses, and damage relations between employers and their staff.

The government is proposing to subsidise long-service and severance payments to the tune of HK$17 billion over 12 years.

But business leaders say firms will struggle to shoulder the increased costs once this 12-year period is up.