to contribute, say, 5% (the normal percentage) of their earnings, with a further 5% from the employer. The contributions are credited (with interest) to the individual worker, and are payable to him on reaching the defined retiring age as a lump sum (or an annuity). Should he die earlier, the whole amount to his credit is paid to his dependants. The administrative costs can customarily be met from the earnings of the invested funds, a slightly lower rate of interest being paid to the contributor. (A scheme of this type has been operating for some years in Singapore, which, since it has an economy comparable in many ways with that of Hong Kong, may appeal more to local opinion). Legislation and reports can be made available about Provident Fund Schemes if required.
6. On the basis of 300,000 contributors at an average wage of HK$300 a month, the income of the fund would average about HK$100m. a year, and build up to perhaps HK$1,500m. before levelling off as payments increase. The investment locally of sums of this magnitude could be important.
November 1965.
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