DBS Hong Kong: 63% of surveyed companies are optimistic about Hong Kong's business prospects.

On September 14, DBS Hong Kong released the latest Hong Kong Business Outlook Survey results. The survey was conducted before the publication of Hong Kong's first five-year plan and the annual Policy Address. The survey shows that businesses are generally optimistic about the outlook, with 63% of respondents feeling optimistic or very optimistic about the business prospects of Hong Kong companies over the next 12 to 18 months. DBS Hong Kong conducted the survey from August 6 to September 7, 2026, interviewing 250 owners and decision-makers from Hong Kong SMEs and large and medium-sized enterprises. The survey shows that Hong Kong businesses are enhancing their competitiveness by balancing innovation promotion with strengthened operational management. Looking ahead three to five years, 53% of respondents regard product or service innovation as their top strategic priority, followed by cost optimization and efficiency improvement (46%), and enhancing customer experience (31%). Respondents also expect targeted measures to lower investment thresholds, support technology adoption, and open up channels to regional opportunities, helping businesses translate their confidence in the outlook into actual investment and business expansion. The survey also notes that nearly half of respondents (49%) believe tax incentives and financial support are the most effective measures to stimulate corporate investment and growth, followed by promoting cross-border trade and investment (40%), supporting innovation and technology development (35%), and simplifying regulatory procedures and approval processes (32%). The findings reflect that businesses expect policy and financing measures to work in tandem, reducing the cost and complexity of corporate investment and growth, accelerating commercialization, and helping businesses expand into markets beyond Hong Kong. As Hong Kong prepares to set out a longer-term development direction through its first "five-year plan," respondents see the main opportunities presented by the Northern Metropolis as direct cross-border collaboration and access to the mainland market (30%), as well as investment opportunities (29%); another 23% of respondents believe that increased demand for products and services will help drive business growth. Among all respondents, 36% consider financial incentives the primary measure to encourage businesses to participate more actively in the development of the Northern Metropolis, followed by promoting cross-border resource flows (28%), and clearer long-term planning and policies (22%). The overall survey results show that although businesses recognize the development potential of the Northern Metropolis, they still need clearer commercial application scenarios, participation channels, and incentives to translate market awareness into investment and business activity at scale. The adoption of artificial intelligence and digital technology continues to increase, particularly among large and medium-sized enterprises. Nearly two-thirds (62%) of surveyed large and medium-sized enterprises said AI and digital technology have been fully or partially integrated into their business operations; the corresponding adoption rate among SMEs is significantly lower at 38%. Overall, businesses mainly use these technologies to improve product or service quality (49%), streamline operations and reduce costs (48%), and automate routine tasks (36%). However, businesses still face multiple challenges in further adopting these technologies, including a shortage of technical talent and concerns about data security and privacy, both cited by 37% of respondents. Other major challenges include high implementation and ongoing maintenance costs (35%), and difficulties integrating new technology with existing systems (34%). The survey results show that public and private institutions can help businesses scale up technology adoption by strengthening practical skills training, providing reliable technical support, and more clearly demonstrating the business benefits of technology adoption.