DBS Hong Kong: 56% of Hong Kong SMEs hope to receive funding and financing support in the budget.

Recently, DBS Hong Kong released its latest "SME Pulse Check" survey. Approximately half of the surveyed SMEs hold neutral predictions on the economic outlook of Hong Kong and mainland China in 2025, with 51% and 49% respectively. The survey found that the majority of Hong Kong SMEs (56%) are hoping to receive funding and financing support from the budget, as well as easier access to business loan support. 32% are hoping for government assistance in expanding into new markets in Asia and the Middle East, as well as business matching and networking. 28% are seeking support in technology and innovation. 60% of respondents indicated that operational costs are their biggest concern, followed by geopolitical uncertainty and economic fluctuations at 52% each, while access to capital and financing channels account for 33%. Despite facing these challenges, over half of the respondents (52%) expect business growth in the next 12 months, while 28% expect business stability. The primary tasks for SMEs are ensuring stable cash flow and cost management (76%), followed by expanding into new markets (56%) and marketing and brand promotion (31%). It is worth noting that more Hong Kong local SMEs this year (23%) are prioritizing sustainable development in their business operations compared to last year (14%). Furthermore, when asked about their biggest expectations from banking partners to support their business, SMEs mentioned simplified and efficient digital banking platforms, professional customer managers providing support and guidance, and access to competitive financing solutions (such as loans and credit limits). In terms of market expansion, mainland China (66%) remains the primary target market for Hong Kong SMEs, with the Greater Bay Area accounting for 45%, while other Asian markets (57%) and Europe (22%) are also included in their expansion plans. In the Asian markets, Singapore leads, followed by Indonesia, Malaysia, and Vietnam. The survey also shows that many SMEs are interested in the Middle East market, with 16% considering it as a new market opportunity.