Hong Kong’s massive pension project grapples with technical glitches

Hong Kong’s eMPF Platform, launched in June 2024 to modernize the city’s $166 billion (HK$1.3 trillion) pension system, has cut administrative fees by 36% but faces growing criticism over technical glitches, including facial recognition failures.

Designed for 4.75 million pension holders and 367,000 employers, the digital system grapples with data migration errors, registration delays, and access issues. A recent Bloomberg report highlighted missing fund information during account transitions, underscoring persistent challenges.

Stakeholders contacted by CIO.com offered varied views. The Mandatory Provident Fund Schemes Authority (MPFA) maintained that the phased rollout is on track, while lead contractor, PCCW Solutions, acknowledged user difficulties. These responses come as the platform prepares for a critical phase — onboarding major financial institutions in the coming months.

Authorities acknowledge isolated cases

The eMPF platform, one of Hong Kong’s most ambitious digital transformation projects, showed signs of strain within months, as the South China Morning Post reported user frustrations, including delayed contribution processing and withdrawal difficulties, issues significant enough to prompt intervention by Financial Services and Treasury Bureau Secretary Christopher Hui.

In December 2024, the government’s response to Legislative Council inquiries outlined the scope of early obstacles. Hui acknowledged users faced problems with “handling contributions and other administrative tasks,” including delays in updating employee accounts with employer payments. Officials noted that over half of the complaints were resolved within ten working days, with complex cases taking longer, and committed to overhauling complaint protocols and enhancing contractor coordination.

In statements to CIO.com, the Mandatory Provident Fund Schemes Authority (MPFA) offered an optimistic outlook, noting that seven of twelve trustees had successfully onboarded by May 2025, with over 430,000 instructions processed and 260,000 users registered. However, MPFA did concede to technical issues with facial recognition registration and non-standard contribution processing.

To address these issues before larger trustee migrations, MPFA said it launched a comprehensive improvement program, which included simplified biometric registration, doubling the number of support personnel, a redesigned user interface, localized employer assistance teams, and expanding physical service access points across Hong Kong’s districts. These measures, shaped by early user feedback, aim to ensure stability as the platform targets full implementation by the end of 2025.

Contractors address ongoing issues

While authorities focus on improvements, contractors are addressing the eMPF platform’s challenges. PCCW Solutions, the primary contractor, defended its performance, saying, “We have swiftly addressed these issues and implemented proactive measures to incorporate feedback.” The firm pledged to maintain operations with a “rigorous and dedicated approach,” deploying user-experience improvements throughout the expansion period.

Subcontractor iFAST Corporation, a Singapore-based wealth management firm, clarified that its role is limited to operational and user delivery services. The eMPF Platform, a non-profit entity operated by eMPF Platform Company Limited under the MPFA, is supported by PCCW and iFAST, who were awarded a HK$4.9 billion contract in 2021 to build and operate it.

The human cost of digital disruption

The real challenge isn’t just backend glitches — it’s the human cost of digital transformation missteps. Sriraj Amritraj, an HR tech analyst at QKS Group, noted that the platform’s struggles reveal how large-scale public systems falter when usability is overlooked.

“The measure of successful government technology isn’t technical sophistication but whether it simplifies people’s lives,” Amritraj emphasized. “True digital maturity occurs when technology becomes invisible — seamlessly integrating into daily routines without demanding constant user effort.”

He warned that persistent issues, such as facial recognition failures and registration delays, do more than frustrate — they erode public confidence. “A pension system is a promise, and when it falters, fixing the software is only part of the solution.”

Amritraj also highlighted the risk of digital exclusion in systems relying heavily on biometrics or app-based onboarding. “Not everyone is tech-savvy. The best platforms provide options — online, offline, phone, or kiosk — to ensure true inclusion.”

A stress test for digital governance

As the eMPF platform enters its next phase, its trajectory offers broader lessons for digital governance. What began as a big leap forward in pension modernization now faces its most critical test to deliver consistent and inclusive service at full scale. While officials cite the phased rollout and ongoing improvements as evidence of responsible stewardship, the platform’s success hinges on serving Hong Kong’s entire demographic spectrum.

This inclusivity challenge goes beyond technical specifications, requiring the system to accommodate digitally native professionals and elderly pensioners who may never download an app. As Amritraj observed, “The smartest systems make room for everyone” — whether through mobile platforms, service centers, or traditional helplines. This approach will be critical as major trustees like HSBC and Manulife, representing millions of users, join the platform in the coming months.

The eMPF experience holds clear lessons for governments worldwide pursuing similar reforms. “Big government systems should never go live without rigorous user testing,” Amritraj emphasized. In public sector digital transformation, the most advanced technical solution fails if it overlooks human behavior. A measured, user-centric approach with diverse access channels and robust support systems is essential to maintain trust in systems safeguarding citizens’ financial futures, he concluded.