Most small firms expect upturn in results for year

About 70 percent of small enterprises in Hong Kong expect corporate results will grow in 2024, marking the highest level in the past five years, a survey by CPA Australia showed.

This anticipation is more optimistic than other comparable regions, including the mainland (59 percent), Singapore (58 percent) and Australia (53 percent).

Cliff Ip, divisional president of CPA Australia 2024 in Greater China, said the optimistic outlook is attributable to both an improving economy and a range of government support programs, from an accommodating financing environment to schemes promoting digitalization and marketing.

He added that as Hong Kong small enterprises made a steady recovery last year, with 56 percent reporting growth, most project a mild expansion in 2024.

Changing consumer behavior and a series of government schemes supporting digitalization has compelled small enterprises to undergo digital transformation to stay competitive. However, cybersecurity risks persist as a significant concern.

Around 64 percent of surveyed Hong Kong businesses said they had lost time and/or money due to cybersecurity incidents last year and seven in 10 were concerned about the potential cyberattacks in 2024, with both findings being the highest of markets surveyed.

However, Hongkongers’ confidence level about their desired financial well-being over the next decade was lower than expected due to the rising living and health-care costs, according to a Manulife Hong Kong survey.

Locals, when asked about their confidence in achieving their desired financial well-being on a scale of one to 100 over the next decade, put themselves at 85 but estimated they were only at the 70 mark.

In other news, mandatory provident fund consulting institution GUM estimates that total MPF assets only grew 1.9 percent to HK$1.18 trillion as of March, and Manulife remains the top provider with a market share of 28 percent.

Specifically, mixed-asset funds saw outflows of HK$32.9 billion, while fixed-income funds experienced outflows of HK$8.4 billion. These funds flowed into equity funds, indicating a preference among members for higher-risk funds.