HONG KONG SAR – Media OutReach – 12 April 2022 – Most small to medium-sized enterprises (SMEs) in Hong Kong are confident they will overcome the city’s fifth wave of the pandemic. However, to take advantage of expected improvements in conditions, small businesses may need to increase their investment in technology and innovation, and reset their business strategy. That’s according to dual studies by CPA Australia on the impact of the fifth wave on local SMEs and a broader survey of Asia-Pacific small businesses.
In light of the fifth wave of COVID-19 in Hong Kong, CPA Australia conducted a poll of SMEs in mid-March on their current and expected performance. This was a follow-up to a more in-depth survey of Asia-Pacific small businesses in November and December, which focused on the characteristics of high growth small businesses, business confidence and access to finance.
Fifty-five per cent of respondents to the March poll were confident that their business or employer will overcome the fifth wave, with 57 per cent expecting revenue will largely remain the same as normal or grow in the next three months.
Forty-two per cent of respondents believe that the relaxation of social distancing restrictions will have the most positive impact on their SME in the next three months, followed by the Employment Support Scheme (18 per cent) and Consumption Voucher Scheme (12 per cent).
When asked which areas of their business were most negatively impacted by the fifth wave, over one-third (35 per cent) nominated business operations, followed by cash flow (26 per cent).
Mr. Janssen Chan, Chairperson of CPA Australia’s SME Committee – Greater China said, “We are aware that many small businesses are suffering during the fifth wave of COVID-19, but they are also demonstrating resilience and adaptability during this period.
“The pandemic is a major catalyst for transforming business models and consumer spending patterns. In Hong Kong, more consumers are purchasing online and using digital payments. With social distancing restrictions set to relax from mid-April and the roll-out of stimulus measures such as the e-consumption vouchers, small businesses should continue innovating, digitalising and updating their business plans to ensure they are best placed to rebound in the second half of 2022.”
CPA Australia’s November/December survey of Asia-Pacific small businesses showed that while the percentage of Hong Kong small businesses that grew in 2021 was below the survey average of 47 percent, it rebounded strongly from 16 per cent in 2020 to 36 per cent in 2021, the same level recorded in 2019. Hong Kong was the only market of the 11 surveyed where small business performed better than expected in 2021.
Helping drive this improvement was an increase in the number of local businesses that found their investment in technology in 2021 improved their profitability (40 per cent in 2021 compared with 25 per cent in 2020). Revenue generated from e-commerce also increased. Over half (53 per cent) generated more than 10 per cent of their revenue from e-commerce in 2021, the highest result for the city since 2017.
Chan explained, “Although Hong Kong small businesses overall may still fall short of the survey average in technology adoption, another positive to emerge from the 2021 results was that more small businesses embraced digital transformation. This bodes well for the future with the survey results showing that high growth small businesses are significantly more likely to be using digital technologies in many aspects of their business.
“Over the past two years, the pandemic has adversely impacted all surveyed markets. Our survey findings indicate that those that innovate and digitalise were more likely to outperform other businesses. I’m delighted to see that nearly seven in ten Hong Kong small businesses will or may innovate in 2022, the highest result since 2017.”
Based on the characteristics of high growth small businesses from the survey results, we recommend that Hong Kong businesses:
increase their focus on online sales and new payment technologies
identify and adopt suitable technologies into their business
innovate through the introduction of new products, services or processes
explore expanding sales into overseas markets
seek professional advice such as IT and financial consultants.
“The SAR government offers a range of support mechanisms to small business such as the Anti-epidemic Fund, Employment Support Scheme and incentives to innovate and digitalise. We encourage businesses to consider these as they should increase the chances of your business succeeding,” says Chan.
About the research
In light of the fifth wave of COVID-19 in Hong Kong, CPA Australia polled SMEs on their current and expected performance in mid-March. Nearly 300 Hong Kong-based accounting and finance professionals who provide services to or are working in SMEs participated in the poll. CPA Australia’s 13th Asia-Pacific Small Business Survey surveyed 4,252 small business owners or managers, including 310 from Hong Kong, across 11 Asia-Pacific markets. The survey was conducted to understand their business conditions and confidence, and was conducted from November to December 2021.
About CPA Australia
CPA Australia is one of the largest professional accounting bodies in the world, with more than 170,000 members in over 100 countries and regions, including more than 22,200 members in Greater China. CPA Australia has been operating in Hong Kong since 1955 and opened our Hong Kong office in 1989. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at cpaaustralia.com.au
#CPAAustralia
The issuer is solely responsible for the content of this announcement.
Stakeholder mapping, analysis, engagement and communication needs to be detailed to avoid business losses or even worse, a crisis. How can you do this effectively to prevent failure? ...
Data-driven business decisions have never been as crucial, especially in this era. MGBF leverages off, technology, experience and market presence to aid businesses in making accurate decisions. ...
MGBF provides comprehensive strategic advice and results-focused solutions to solve clients' problems in business-government relations so they can focus on their core business. ...
A critical business challenge is meeting the right decision-makers and potential buyers through the best channel and platform. How will you improve your business competency? ...
In this episode of 'A Working Lunch with Nordin', MGBF's Nordin Abdullah and regional commentator Eddin Khoo will discuss the biggest threats and opportunities for businesses as we look to manage change in the South China Sea.
This MGBF Roundtable will feature thought leaders form Japan, Australia, Singapore and Malaysia dealing with the critical issues of manipulation of public listed companies and government and their financial impacts.
A series of networking sessions with various business associations and trade organisations exploring high-value opportunities for business leaders and entrepreneurs looking to build the relationships that matter.
This integrated event will include a forum, dedicated business matching, site visits, a gala dinner and a round of golf. Aptly themed, the focus will be on regional food security issues and trends in the context of the supply chain, agriculture technology and trade regulations and policies.
Planet QEOS and China Machinery Engineering Corporation (CMEC) are interested in investing RM10 billion to co-develop advanced Megawatt peak (MWp) agrovoltaic in Baram, to further boost Sarawak’s green energy initiative and food security. Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg was briefed on Friday by both the […]
Last week SPM results came out, 373,974 aspirants who have been waiting patiently over the last few months would now know their fate. Some 10,109 have received all A’s, the golden standard of academic success and the ticket to those looking to study the “more advanced” subjects in university. Proudly, […]
The classic knee-jerk reaction is to say, fire the coach, change the leadership of associations, and reduce the funding till they start performing better. This kind of negative reinforcement may work for kindergarten children, but we are dealing with high-performance adults – individuals much further along in their psychological and […]
Since its earliest tea plantations in 1929, Cameron Highlands has grown to become a key player in the agricultural landscape of Malaysia, producing 40 per cent of all vegetables grown. Despite Malaysia shifting its economic focus away from agriculture, the industry remains imperative for food security and the livelihoods of […]
Although at first glance the travel industry and the agricultural sector appear to have nothing in common, they actually share more than meets the eye. The economic benefits of tourism to the agricultural sector can be multiplied several times over. “Tourism brings the end consumers closer to the source, which […]
The Malaysia Global Business Forum (MGBF) recently held a high-level roundtable themed ‘Designing the Future of the Digital Economy’, attended by industry leaders and business associations. The guest of honour was Yang Berhormat Syerleena Abdul Rashid, the Member of Parliament (MP) for Bukit Bendera in Penang. The MP’s Special Session […]
The Malaysia Global Business Forum (MGBF) will be hosting a roundtable on ‘Designing the Future of the Digital Economy’ on 23 February 2023. It is the culmination of the first three MGBF Exclusive Roundtable Series titled ‘The Evolving Threat Matrix in the Digital Economy’ held throughout 2022. According to the […]
The Founding Chairman of the Malaysia Global Business Forum (MGBF), Nordin Abdullah, today spoke on Bernama TV’s leading English talk show, The Brief, hosted by Jessy Chahal, on the topic of a stable political reality and what that means for the Malaysian economy. Nordin said, “The first thing that it […]
More than 1,100 years ago, Muhammad ibn Musa al-Khwarizmi was developing the mathematical formulas that we know today as algorithms which now have become so intertwined with the business fortunes of global media giants and the very fabric of geopolitics. A series of recent high level international reports have revealed […]
KSK Land has been recognised by the Malaysia Global Business Forum (MGBF) for its role in attracting high net-worth individuals to Malaysia post-pandemic. The first challenge in investor attraction is “selling” the country. In the context of Asia, Malaysia is competing with some very established investment destinations. The second […]
Malaysia, in particular Kuala Lumpur, continues to position itself as a regional centre to do business, educate a family and enjoy a global lifestyle. One company, KSK Land, has taken the lead in positioning itself and the city of Kuala Lumpur as a property investment destination for the global citizen […]
The upcoming budget represents an opportunity to build resilience in the critical sectors that will form the backbone of the country’s future-facing economic ambitions. This however needs to be achieved in the context of managing the community sectors most impacted by COVID-19 over the past two years. The Keluarga Malaysia (Malaysian Family) […]
Malaysia Global Business Forum (MGBF) has moved to support the creative economy as the overall economy moves into a recovery phase following the COVID19 pandemic. As a step in the direction of normalcy, the MGBF has agreed to host the art exhibition “I Know You’re Somewhere So Far” by one […]
Congratulations to Datuk Seri Ismail Sabri Yaakob for taking up the mantle of the ninth prime minister of Malaysia. There is nothing normal about the situation; it could not have been scripted but it has kept the spectrum of media, mainstream and social, gripped. The first order of business for […]
In a stirring speech to the nation, President Joseph R. Biden, Jr. stamped his brand of leadership on the presidency, in his first act as the 46th president of the United State of America, it signaled several shifts. Perhaps the weather was foreboding with snow falling before the ceremony that […]
KUALA LUMPUR, 6 July 2022 – As the global economy continues to deal with unprecedented levels of disruption caused by the pandemic and the conflict between Russia and Ukraine, the convergence of energy security and food security issues has become a front-of-mind issue faced by policy makers and consumers alike. […]
KUALA LUMPUR, 23 June 2022 — Malaysia Global Business Forum (MGBF) ties up with scoutAsia to ensure that businesses are equipped with deeper regional insights. The past two years has seen a massive shift in the way businesses are conducted with digitisation, digitalisation and automation continuously being adopted to improve […]
KUALA LUMPUR, 25 May 2022 – The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Security Concerns in Critical Value Chains’ was held in a hybrid setting yesterday at the Eastin Hotel Kuala Lumpur. The guest of honour was Yang Berbahagia Tan Sri Dato’ Seri Rafidah Aziz, former minister of […]
We live in the age of crisis. At the heart of any crisis is the threat of rapid change. Change too deep or too wide that the current coping mechanisms for an individual, corporation or government are unable to remain resilient. An unwelcome paradigm shift, like the proverbial spider, that […]