DBS Bank: More than half of small and medium-sized enterprises in Hong Kong hold a neutral view on the economic outlook. An increasing number of SMEs are seeing market expansion as a key focus of their business.

The latest survey of small and medium-sized enterprises (SMEs) in Hong Kong by DBS Bank shows that more than half of local SMEs have a neutral outlook on the economic prospects of Hong Kong (55.6%) and mainland China (50.8%) for 2024, with slightly more optimism towards the mainland China economy (27.3%) compared to Hong Kong (20.6%). Currently, the main focus for Hong Kong SMEs is on "ensuring stable cash flow and managing costs" (71%), followed by market expansion (52.4%) and marketing and brand building (35.6%). It is worth noting that an increasing number of Hong Kong SMEs see market expansion as a business priority, with this proportion significantly increasing from 25% last year to 52.4% this year. Mainland China (55.1%) has become the top market for Hong Kong SMEs, with 38% of businesses expressing particular interest in cities in the Greater Bay Area. The upcoming "Budget" also brings hope for Hong Kong SMEs, with nearly 60% of respondents expecting to receive more funding or financial support. Amy Wang, Managing Director and Head of SME Banking at DBS Hong Kong, said that nearly half of Hong Kong SMEs anticipate growth in business income in the next 12 months. This reflects the resilience of local SMEs and their confidence in the development of the mainland China and ASEAN markets. The survey also shows that ensuring stable cash flow and managing costs is the top priority for Hong Kong SMEs. DBS Bank offers a range of digital banking solutions and incentives aimed at helping SMEs increase productivity and reduce costs. Leveraging its extensive network in Asia, the bank will assist SME customers in expanding and optimizing their supply chains within the region, uncovering new business opportunities. Geopolitical uncertainty is the top concern for Hong Kong SMEs, with over half of respondents listing it as their primary focus, followed by inflation (41.4%) and human resources costs and supply (39.8%). Compared to last year, fewer businesses (30.7%) are concerned about rising global interest rates.