Hong Kong’s small and medium-sized enterprises (SMEs) are finding it more difficult to repay debt and expect slower business growth this year, though they still plan to hire staff and invest in technology, according to a survey released on Thursday.
Around 57 per cent of Hong Kong respondents said they expected their business to grow in 2025, down from 69 per cent in 2024, according to the 16th annual edition of CPA Australia’s Asia-Pacific Small Business Survey for 2024 and 2025.
In 2024, 65 per cent of the surveyed Hong Kong SMEs reported business growth – the strongest performance since 2017 – an increase from 57 per cent in 2023.
The survey collected views from 4,236 SMEs in November and December in 11 markets across the Asia-Pacific region, including Hong Kong, Singapore, mainland China and Australia.
“Many SMEs are facing multiple challenges, including US tariffs, tightening financing conditions and increased market competition,” said Cliff Ip, a councillor at the Greater China Division of CPA Australia, a group representing the accountancy industry.
He said that when the survey was conducted, Donald Trump had been elected US president, so respondents expected Washington to impose tariffs on many markets. This may explain why Hong Kong respondents expected a slowdown.
Hong Kong’s confidence ranked the eighth among the 11 markets; higher than Australia, where only 55 per cent of respondents expected business growth in 2025. Taiwan was at 52 per cent and New Zealand stood at the bottom at 47 per cent.
