Second thoughts needed on provident fund

your say August 23, 2014 01:00

This is in regard to the proposed Mandatory Provident Fund.

While I agree there should be long-term safety net for Thai citizens, I think more thought should be put into the requirement for a Mandatory Provident Fund.
As an SME owner with six employees, I wonder whether the cost of hiring a fund manager would eat up any or all of the savings that the employees and employer put in? Or will this work similarly to the Social Security Funds, with a government-owned Social Security Office as the fund manager?
All I am afraid of is that this push by the Association of Provident Fund Managers is only aimed at increasing the assets under management and thus their fee income – to the detriment of the citizens. It could especially harm people employed by SMEs that can hardly afford fund managers, as well as lacking the economy of scale to invest meaningfully.
I hope the NCPO and other authorities will consider this issue very carefully before passing it.
Manorat Mahappark