Report: Mandatory provident fund only feasible in 2026

The SAR is recommended to institute a three-year observation period due to the impact of Covid-19 on Macau’s economy, and implement the Mandatory Central Provident Fund System in 2026 or 2028, according to a report issued by the Social Security Fund (FSS).
On Friday, the bureau issued the Fund System Review Report, which inditacted that three years since the system was implemented, certain results were achieved, and that conditions have been met to move towards its mandatory implementation.
The review report points out that the government has cumulatively appropriated more than MOP28.6 billion from 2010 to 2020. An account owner can be allocated funds and income, up to a total of MOP86,910, which lays the foundation for the construction of the system. In the three years since its implementation, participation in the system, the size of pension funds, and the returns on investment have all continued to grow, indicating that the system has been operating “smoothly.” As of September 2021, 364 employers have participated in the System, 24,000 employees have participated in the joint provident fund scheme, and around 75,000 residents have set up individual provident fund schemes.
The report also points out that if Macau had taken advantage of the momentum of 2019, it would already have conditions for mandatory implementation. However, Covid-19 and its recurrent outbreaks worldwide have had a major impact on Macau’s economy.
Therefore, careful consideration should be given to advancing the process of the fund. The International Monetary Fund (IMF) forecasts that the real GDP of Macau in 2025 can roughly return to 2019’s level. The report then recommended that the 2021—2023 period is set as an observational period and, subject to economic recovery, a five- and seven-year probation period plan can follow. Given success across this timespan, the Mandatory Central Provident Fund could be implemented as early as 2026 or 2028.
The University of Macau’s research team was commissioned to compile the report by summarizing the implementation data relating to the Non-Mandatory Central Provident Fund. Staff reporter