Hong Kong’s small and medium-sized enterprises showed slight development momentum in the fourth quarter of 2023. According to the latest released “Standard Chartered Hong Kong SME Leading Business Index,” the index rose slightly to 47.6, reflecting cautious optimism among Hong Kong’s small and medium-sized enterprises towards the current market environment. Among the sub-indices, particularly the profit performance and business conditions showed positive growth signs. However, the uncertainty of the global economy remains the main challenge faced by businesses.
The survey also shows that Hong Kong small and medium-sized enterprises remain steady in terms of investment, with most companies planning to maintain or increase investment, especially in e-commerce and digital technology training. In addition, the expected pressure on raw material costs and employee salaries for Hong Kong small and medium-sized enterprises has eased, which may help alleviate the rise in business costs.
Standard Chartered Bank’s experts believe that although the index is still below the neutral level, this reflects the resilience of Hong Kong’s small and medium-sized enterprises in the face of external challenges. In addition, the government has proposed a series of measures in its latest policy address, such as establishing a dedicated task force for the development of e-commerce and organizing the Hong Kong Shopping Festival. These initiatives are expected to further support the development of Hong Kong’s small and medium-sized enterprises.
Of particular note, Hong Kong small and medium-sized enterprises are focusing on recovering or increasing local customer sources and expanding overseas markets in their deployment and development direction for 2024. The government’s promotion of the development plan for the Northern Metropolis and the Hong Kong Tourism Industry Development Blueprint 2.0 will help boost consumption and promote economic recovery.
At the same time, the Productivity Bureau further strengthens support for small and medium-sized enterprises, especially in digital applications, such as launching the “Small and Medium Enterprise Upgrade Practice Classroom,” providing relevant strategies and marketing consulting services to help small and medium-sized enterprises enhance their competitiveness.
In summary, Hong Kong’s small and medium-sized enterprises have shown a stable development trend in the fourth quarter of 2023 and maintain an optimistic attitude towards the future. The support from the government and relevant institutions will be an important factor in driving the continuous growth of these businesses.
