Departing Hong Kong residents took HK$2b from pension funds in Q1

Residents leaving Hong Kong for good withdrew a total of HK$2.014 billion (S$352.3 million) from their Mandatory Provident Fund (MPF) pension accounts in the first quarter of 2022, up 4.3 per cent from a year earlier, government data showed.

A total of 7,500 claims were made in the January-March quarter, compared with the 7,700 claims taking out HK$1.931 billion during the same period in 2021, data from the Mandatory Provident Fund Schemes Authority (MPFA) on Thursday (Jun 2) showed.

The figure was, however, lower than the 8,700 claims for the October-December quarter that saw withdrawals of HK$2.384 billion.

The MPFA said multiple claims are sometimes made by a single person as a scheme member may have more than 1 account under the MPF System.

Coronavirus restrictions helped fuel a net outflow of about 156,600 Hong Kong residents in the first quarter of 2022, according to official census data. The city had a population of around 7.4 million at the end of last year.

Like mainland China, Hong Kong has stuck firmly to a “dynamic zero” coronavirus policy that seeks to curb all outbreaks, but many stringent restrictions imposed by the former British colony earlier in the pandemic have been eased.

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In a further easing of restrictions last month due to sliding cases, the financial hub reopened beaches and swimming pools and extended hours for bars while increasing the number of people restaurants are allowed to serve per table.

A national security law imposed on the city in June 2020 has also prompted some residents to abandon Hong Kong amid fears they could fall foul of the legislation that punishes anything Beijing regards as subversion, secession, terrorism or colluding with foreign forces with up to life in prison. Reuters