This satisfactory return is just one of the many services PCU is providing for its 30,000 plus members. Apart from steady and reasonable return, PCU provides low-interest loans and various preferential schemes such as savings protection, grants for hospitalisation and emergency subsidies, etc. In fact, PCU's services have become so diverse following years of business expansions that Yahoo Hong Kong has put it in the banking category.

On the occasion of PCU's 25th anniversary, OffBeat has talked to its president, Chief Superintendent Ma Wai-luk from Crime Wing Headquarters, to find out how the union strives for the well being of its members and in what direction it will move on.

According to Mr Ma, PCU's income mainly comes from three sources, namely, interest from bank savings, earnings from investment on various financial products such as stocks, funds and bonds, as well as interest from loans to members.

"As we've looked for financial products with low to medium risk for investment, our overall income has increased, and our asset has more than doubled from $1.2 billion in 2001 to 2.5 billion in 2006," he noted.

Sound investment strategy

Mr Ma pointed out that adopting a sound investment strategy is the union's long-standing policy. He explained: "As a result of this policy, we can afford investment risk no matter how volatile the market is, and we can reduce losses to the minimum. As our asset belongs to members, we've to be very prudent with their money, and every decision on investment was made with great care."

As president of PCU, Mr Ma always racks his brains for its further developments, and for offering more choices for members. "We're looking into the feasibility of offering mortgage loans," he noted.

His biggest wish is to see steady and reliable annual income eventually raise interest rate for members to 6 per cent. "I hope this target can be achieved in five years," he quipped.

To pay back society, PCU has been active in offering voluntary services in recent years. Last year, it financed the renovation of a primary school on the Mainland. Internally, it has made contributions to the Force. For example, it just donated $1 million to the Police Welfare Fund.

Mr Ma has served PCU for nearly four years on a voluntary basis. For him the biggest challenge is satisfying members' expectations on one hand, and striking a balance between investment risk and return on the other hand. He noted: "Naturally members expect investment would bring high return, but high return is always proportional to risk. Therefore, we've to be very careful in choosing investment products."

It is a tremendous amount of pressure for Mr Ma to manage PCU's big asset and shoulder the expectations of 30,000 members. However, members' positive responses and compliments have given him the biggest motivation and satisfaction.

Credit goes to staff

Speaking of PCU's achievements, Mr Ma said credit should go to its staff. "Some of them have served for more than 10 years, contributing a lot of time and effort," he added.

Formed by disciplined and civilian officers in 1981, the credit union has developed from strength to strength. From a humble beginning with only a few members and about a $1 million capital, it has become the biggest credit union in Hong Kong with a $2.5 billion asset and a membership of 30,000. It employs 13 full time staff to look after day-to-day operations.

Said Mr Ma in conclusion: "The concept of credit union is very popular in Europe, US, Australia and Japan. Some credit unions in the US also issue credit cards and offer mortgage loans, operating like a mini-bank. I think these are our ultimate goals!"

Mr Ma is bent on further diversifying services to PCU members