Financial Associated Press, April 29th (Reporter Cheng Mengqi)Recently, the Hong Kong Productivity Council released the “Standard Chartered Hong Kong SME Business Index” for the second quarter of 2023. According to the survey, the index rose by 6.1 to 52.8 in the second quarter, which is the first time since the epidemic that it has exceeded the neutral level of 50 points, and it has also exceeded 50 points for the first time in eight years. It is also the second highest in the history of the index since its launch in 2012.
In Hong Kong, small and medium-sized enterprises account for more than 98% of the total number of enterprises in Hong Kong, employing more than 45% of the labor force. It can be said that the stability of small and medium-sized enterprises is closely related to social stability.
This means that Hong Kong’s economy has regained growth momentum, and SMEs have regained confidence in Hong Kong’s business environment. At the same time, Hong Kong, which has always been regarded as a “depression in the mobile Internet era”, has also accelerated its embrace of digital technology after the epidemic.
Hong Kong’s GDP is expected to reach 5.5% in 2023, and the unemployment rate has dropped to 3.3%
In 2022, Hong Kong’s GDP will reach US$360 billion, ranking tenth in the world, and ranking sixth if the interference from the bottom of exports is excluded. In 2022, Hong Kong’s GDP will drop by about 3.5%, mainly due to the impact of the decline in export volume. The reasons that interfere with exports are geopolitical relations, the conflict between Russia and Ukraine, and the rise in peripheral interest, which weakens peripheral demand; at the same time, due to the epidemic, Hong Kong and the mainland cross-border traffic has been significantly disrupted.
In a recent speech, Chan Mao-po, Financial Secretary of the Hong Kong Special Administrative Region, stated that the “three carriages” that drive GDP growth are exports, investment and consumption. Last year, the global economic environment was not good, and the financial market was relatively volatile. Asset prices, real estate, and the stock market in Hong Kong all fell. Among the “three carriages”, only consumption withstood the pressure. The reason was that the SAR government took measures to support small and medium-sized enterprises and Policies such as distributing consumer vouchers.
What about the situation in 2023? Chen Maobo said that from the data point of view, the export in the first two months was still a bit difficult, and the decline was relatively large, but the decline in March narrowed to single digits, mainly due to the convenience of cross-border transportation after the comprehensive customs clearance between Hong Kong and the mainland; at the same time, the country The export data for the first quarter was announced, and exports have increased, which also has some support for Hong Kong; moreover, Hong Kong’s consumption increased by about 17% in the first three months, providing strong support in the face of downward pressure on exports. At the same time, due to the comprehensive customs clearance with the mainland and the world, the atmosphere of the whole society has changed. People are more willing to go out and spend money. Overall, Hong Kong’s GDP growth this year is around 3.5% to 5.5%. The inflation rate was 1.9% last year and 2.5% this year. Prices are relatively stable. The unemployment rate has dropped from the peak of 5.4% last year to the current 3.3%.
The Productivity Council and Standard Chartered survey examines the recovery process of SMEs. According to the survey results, about 70% of the interviewed SMEs said they had been negatively affected by the COVID-19 pandemic, which has also changed the operation and sales models of SMEs.
“In order to help all walks of life to adapt to the new operating model, the Productivity Council has launched a one-stop platform of ‘Digital is not asking for help’ to provide SMEs with a more comprehensive choice of digital solutions.” Li Shaobin, chief digital director of the Hong Kong Productivity Council, told reporters that the meeting will be extended A series of relief measures to support small and medium-sized enterprises, encourage small and medium-sized enterprises to use advanced technology and innovative services to transform and upgrade, and to cope with market challenges.
Hong Kong SMEs are still worried about the global economic situation
The survey of the “Standard Chartered SME Index” in the second quarter of 2023 took place in March 2023. At that time, European and American banks were hit by thunderstorms one after another, which aggravated the concerns of Hong Kong SMEs about the global economic situation.
The survey of the “Standard Chartered Hong Kong SME Business Index” in the second quarter showed that the recruitment, investment, business conditions and profit performance indexes of SMEs rose across the board, but the “global economy” index failed to exceed the neutral level, indicating that the global economy The environment is still facing certain pressures and challenges, and SMEs are still cautious about the prospects of the “global economy”.
Among the 11 major industries surveyed, except for the “finance and insurance” industry index which remained stable, the remaining 10 industries all recorded increases in the comprehensive business industry index. Among them, “real estate industry” (49.7), “import and export trade and wholesale industry” (49.2), “manufacturing industry” (46.3) and “transportation, warehouse and express delivery service industry” (43.1) failed to exceed the 50-point neutral Horizontal line, but still achieved growth of 10.2 points, 5.9 points, 2.4 points and 4.7 points respectively.
SMEs are most willing to spend money on e-commerce and digital technology
In terms of overall investment trends, 93% of the surveyed SMEs indicated that they would maintain or increase investment. Small and medium-sized enterprises expect to increase investment the most this quarter in order of “e-commerce or digital technology-related training”, “overall staff training”, “online marketing”, “machinery and equipment” and “information technology systems”.
“Hong Kong and the mainland have fully resumed customs clearance, coupled with the restart of many major international events, Hong Kong’s economy has regained growth momentum, providing more stable and favorable conditions for the development of enterprises. The latest budget predicts that Hong Kong’s economy will rebound significantly in 2023, The real growth rate for the whole year ranged from 3.5% to 5.5%. The results of this survey also echoed the market forecast. More than half of the SMEs in the industry were optimistic about their business confidence. Among them, the index of the ‘Accommodation and Catering Services’ industry showed the most significant growth. It is expected to increase manpower this quarter to meet market demand.” Li Shaobin pointed out that in addition to recruiting more manpower, many small and medium-sized enterprises are also expected to increase investment, operation and marketing-related projects this quarter, reflecting the positive development trend of various industries and the prospects for Hong Kong. Regain investment confidence.
In addition, Liu Jianheng, senior economist for Greater China at Standard Chartered Bank (Hong Kong), said: “The composite business index rose to 52.8 in the second quarter, which is the first time in eight years to exceed 50 points, and it is also the second highest since the index was launched in 2012. Although the index improved in the second quarter, confidence is still affected by external headwinds, and the ‘global economy’ sub-index has lagged behind other major sub-indexes.” Affected by industry turmoil, uncertain global interest rates and economic prospects have cast a shadow. As the positive effect of the relaxation of prevention and control measures gradually fades, local consumption will be the key to stabilizing the confidence of small and medium-sized enterprises, and the tight supply in the labor market will drive wages and Rising income will also bring support to the market.
Embrace a new development model after the epidemic
Hong Kong has always been regarded as “a depression in the mobile Internet era”, but this phenomenon is gradually changing.
According to the survey, about 70% of the interviewed small and medium-sized enterprises have been negatively affected by the new crown epidemic, among which the “accommodation and food service industry”, “real estate industry”, “retail industry” and “social and personal service industry” have been most affected.
The epidemic has changed the operation and sales models of small and medium-sized enterprises, such as replacing physical meetings with video conferences in terms of operations, implementing remote work, or providing services electronically and accepting more payment methods in terms of sales. Most of the SMEs that have made changes indicated that they will still maintain these changes.
About one-third of the small and medium-sized enterprises affected by the epidemic said that the current turnover has returned to or even exceeded the level before the epidemic; at the same time, more than 60% of the interviewed small and medium-sized enterprises said that they have new development plans this year.
How to assist SMEs to embrace the new operating model? Li Shaobin said that the Productivity Council has launched a one-stop platform “Digital does not ask for help”, which supports enterprises to contact different types of digital solution providers, provides the latest digital and innovation activities, information on digital transformation and technology training courses, and provides small and medium-sized enterprises with A more comprehensive choice of digital solutions can increase the overall competitiveness and business growth potential of small and medium-sized enterprises, and seize business opportunities in economic recovery. At the same time, it also extended a series of relief measures to support small and medium-sized enterprises. By providing diversified consulting and support services, it encourages small and medium-sized enterprises to use advanced technology and innovative services to transform and upgrade to meet market challenges.
“As the secretariat of government funding schemes, HKPC is committed to providing professional one-stop services. Our ‘SME Support Team’ provides one-on-one free consultation services for SMEs to assist in matching suitable funding schemes to improve SME Enterprises’ awareness of government funding schemes; in addition, we have launched the “Easy Funding” online platform and related mobile applications to provide SMEs with an additional channel to learn about government funding schemes, simplify and speed up the entire application process, and encourage SMEs to speed up Enterprises implement this year’s new development plan to promote the recovery of the industry.” Li Shaobin told reporters.