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Associated Press
10-04-2025
- Business
- Associated Press
CPA Australia: Hong Kong SMEs eager to innovate amid tougher financing conditions
HONG KONG SAR - Media OutReach Newswire – 10 April 2025 - CPA Australia's latest Asia-Pacific (APAC) Small Business Survey 2024-25 reveals that the outlook for business growth this year for Hong Kong's small and medium enterprises (SMEs) has slowed, though their hiring intentions remain strong. To combat uncertainties and rising competition, many are focusing on innovation and increasing their investment in artificial intelligence (AI). The annual survey collected views from 4,236 small businesses in 11 markets across the Asia-Pacific region (including Singapore, Mainland China and Australia) to understand their business performance and outlook. The survey included 306 respondents from Hong Kong, with 65 per cent of the businesses surveyed reporting business growth in 2024, a notable rise from 57 per cent in 2023 and the strongest performance since 2017. However, 57 per cent of respondents expect their business to grow in 2025, marking a sharp decline from last year's 69 per cent growth projection. Confidence in Hong Kong's broader economy mirrors this trend, with 68 per cent expecting economic expansion this year, down from 73 per cent in 2024. Mr Cliff Ip, a councillor on CPA Australia's Greater China Divisional Council, said: '2024 was a positive year for most Hong Kong SMEs, thanks to an improving economy and various government support measures. However, this year, many SMEs are facing multiple challenges, including economic pressures, tightening financing conditions and increased market competition. As a result, business sentiment has become more cautious. 'Some sectors are still adapting to changes in consumer behaviour, such as the rise in online shopping and spending outside of Hong Kong. For SMEs to achieve sustainable development, it's important to adopt a more proactive approach in embracing these trends.' To remain competitive, Hong Kong SMEs are keen to innovate and expand into overseas markets. In 2025, 94 per cent of respondents intend to innovate their products or services, surpassing their regional counterparts for the second consecutive year. Additionally, 79 per cent expect revenue growth from overseas sales this year, the highest among the markets surveyed. 'It is encouraging to see that many Hong Kong SMEs are looking to grow their business through alternative sources, such as overseas sales. They should actively leverage government support programs such as E-commerce Express and SME Export Marketing Fund to accelerate business transformation. Meanwhile, given heightened geopolitical risks, SMEs need to stay alert to the risks and opportunities from policy changes, such as tariffs,' Mr Ip said. The challenging financing conditions are noteworthy. In 2024, over 80 per cent of Hong Kong's small businesses required external finance. However, 37 per cent found it difficult to access funds, up from 8 per cent in 2023. Additionally, the number of small businesses struggling to repay their debts rose from 9 per cent in 2023 to 22 per cent in 2024. The financing and solvency issues are likely to persist this year. In 2025, 40 per cent anticipate difficulty accessing finance, while 26 per cent expect they may struggle to repay debts. 'While banks remain the main source of external funding, many SMEs used their personal resources last year, marking a five-fold surge from 2023, due to tightened lending requirements. We therefore welcome the measures, announced this week by the Hong Kong Monetary Authority (HKMA) and the banking sector, to support SMEs obtain bank financing. To further assist SMEs in managing their liquidity needs, we suggest the Hong Kong government and financial institutions extend the Pre-approved Principal Payment Holiday Scheme for 12 months,' Mr Ip said. 'To sustain growth, SMEs should continuously innovate to stay competitive, closely monitor their cash flow, focus on high-growth business opportunities, diversify revenue streams, and seek professional advice on cost-saving measures. These strategies will help businesses navigate economic uncertainties and strengthen their long-term competitiveness.' Employment trends in the SME sector remain strong. Last year, 42 per cent reported an increase in headcount, and 51 per cent expect to hire new staff this year. The survey also highlights robust technology adoption among Hong Kong's small businesses. In 2024, 80 per cent sold online, 83 per cent offer digital payment options and 95 per cent leverage social media. Notably, 41 per cent reported making a major investment in AI last year, marking it as a significant investment among other technologies. Another 26 per cent sought advice from AI tools. Mr Davy Leung, Deputy Chairperson of CPA Australia's Small and Medium Enterprises Committee – Greater China, said: 'Hong Kong SMEs are facing labour shortages and talent competition issues, especially because many business owners are keen on hiring. This might be prompting them to invest heavily in advanced technologies such as AI and conversational platforms to interact with potential customers, improving efficiency and saving costs. 'It's interesting that AI tools have become a popular source of advice for many SMEs in Hong Kong. There are pros and cons of consulting AI on doing business. While leveraging advanced technologies like AI reflects a positive attitude and open mindset towards trying new methods, it also increases cyber risks. Additionally, SMEs should not rely solely on AI and should seek advice from reliable professionals, especially on technical issues such as financing and taxation. 'Last year, 72 per cent of SMEs suffered financial or operational losses due to cyberattacks, ranking highest among all markets. This highlights urgent cybersecurity gaps that must be addressed. To safeguard SMEs from escalating cyber threats, the government should strengthen support programs by providing more funding for cybersecurity investments, offering practical training on cyber risk management, and enhancing information-sharing platforms.' The issuer is solely responsible for the content of this announcement. About CPA Australia
Associated Press
27-02-2025
- Business
- Associated Press
HKTDC welcomes Hong Kong SAR's 2025-26 Budget
New Budget Comprehensively Supports SMEs Fostering Sustained Momentum for Hong Kong's Economic and Trade Development HONG KONG - February 27, 2025 ( NEWMEDIAWIRE) - The Hong Kong Trade Development Council (HKTDC) welcomes the 2025-26 Budget announced this morning by the Financial Secretary of the Hong Kong Special Administrative Region (HKSAR), Paul Chan. The Budget introduces a series of measures centred around technological innovation to empower industrial development and facilitate the continuous growth of SMEs and start-ups. The measures also help attract diverse sources of investment and promote mega events to comprehensively engage businesses, capital and talent. They also strive to accelerate development of the new quality productive forces to drive high-quality economic growth in Hong Kong. HKTDC Chairman Dr Peter K N Lam believes that the series of measures in the Budget, including the injection of funds into the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) and the SME Export Marketing Fund, offers concrete support to SMEs amid a challenging economic evnrionment. The Budget also proposes measure that help consolidate Hong Kong's advantages around its 'eight centres' positioning boosting future growth and prosperity. Dr Lam added: 'The Budget mentions initiatives to strengthen assistance for local SMEs to explore the mainland market and increase e-commerce sales. This year, the HKTDC will launch the 'E-commerce Express' in collaboration with major e-commerce platforms and industry experts. Through a series of thematic training seminars and one-on-one advisory services, this initiative aims to enhance Hong Kong businesses' understanding of mainland e-commerce and online platforms, offering comprehensive support for SMEs intending to expand into the mainland e-commerce market. The upcoming second edition of the Hong Kong Shopping Festival in August serves as the flagship event of this initiative, offering Hong Kong businesses hands-on experience using e-commerce platforms to explore the mainland market and enhance the visibility of their products and brands. The HKTDC will work closely with the Trade and Industry Department to enhance mentorship schemes, empowering Hong Kong businesses to effectively leverage mainland e-commerce and online platforms to promote their products.' The Budget also proposes various measures to promote innovation and technology development, with increasing exposure for local tech products being an important component. The HKTDC will launch a thematic pop-up display area to its Hong Kong Design Gallery, as well as at exhibition venues during major exhibitions, to showcase local high-quality and innovative technology products to local and overseas buyers and consumers. The HKTDC will closely collaborate with local education and research institutions to provide more physical product showcases and sales platforms for Hong Kong technology enterprises and start-ups. These partnerships will help Hong Kong research companies build their product brand image, while raising the visibility of Hong Kong brands among local and international buyers. In strengthening Hong Kong's role as a superconnector and super value-adder, the Budget mentions that the Financial Services and the Treasury Bureau, in collaboration with the Office for Attracting Strategic Enterprises (OASES) and the HKTDC, will host the inaugural Hong Kong Global Financial and Industry Summit this year. By leveraging Hong Kong's financial strengths, the new Summit will further enhance international industrial cooperation to attract capital and businesses to Hong Kong. The HKTDC is also enhancing project connections and deal-making promotion at the Belt and Road Summit, focusing on green development and innovative technology, positioning Hong Kong as a commercial hub for Belt and Road. The HKTDC will continue to closely cooperate with the HKSAR Government, actively promoting Hong Kong's advantages to global markets, while attracting international financial and business leaders to explore global market opportunities through the Hong Kong platform. The HKTDC will continue to enhance Hong Kong's competitiveness and international connections. In the 2025-26 fiscal year, the HKTDC will focus on three main areas: Hong Kong's unique position as a resilient and connected global business hub, while strengthening its integration into national development as well as its role as a superconnector and super value-adder; Hong Kong's competitiveness by embracing innovation and sustainable development to support the national new quality productive forces strategy, while seizing opportunities arising from global trends; the next generation of connected and future-ready SMEs and start-ups, while fast-tracking SMEs' digital transformation. Media enquiries
