DBS Hong Kong survey reveals Hong Kong SMEs prioritise three key supports from 2024 Policy Address: branding Promotion, technology advancements and funding to growth fuel
Hong Kong, 14 Oct 2024 - DBS Bank (Hong Kong) Limited (“DBS Hong Kong”) today announced a recent survey that small and medium-sized enterprises (SMEs) in Hong Kong are looking forward to receiving support in 3 key areas - brand development, technological advancements, and funding and financial assistance in the forthcoming “2024 Policy Address”, set to be launched on Wednesday (16 October). The survey highlighted the Hong Kong SMEs’ wish list for the upcoming “2024 Policy Address”, as a pivotal opportunity for driving growth and sustainability. 40% of the local respondents identified brand development and promotion as their top priority. This was closely followed by 39% looking for technological support, such as the know-how and its related consultation channels, 35% emphasising the need for financial assistance, and 34% requesting for business matching and networking opportunities which reiterate the importance of collaboration in achieving long-term success.Hong Kong and onshore GBA SMEs eager to expand businesses into Asian markets The survey also revealed many respondents have keen interests in expanding their business into other markets. 86% of the Hong Kong respondents and 89% of the onshore GBA respondents are actively planning or currently engaged in Asian expansion efforts. In terms of priority markets, 30% of the onshore GBA respondents showed a strong preference to pick Hong Kong as their top expansion destination, followed by Singapore (22%). For Hong Kong SMEs, onshore GBA cities took the top spot at 34%, followed by non-GBA cities in Mainland China (23%) and Singapore (20%). Local SMEs and onshore GBA respondents reckoned taking advantages of the supply chain, reducing operational costs and accessing to large consumer base in target markets as the key contributing factors that motivates them to make their expansion decisions.Lareina Wang, Executive Director and Head of SME Banking, DBS Bank Hong Kong , said, “A robust policy framework is essential for empowering SMEs to navigate today’s market challenges. Insights from our survey underscore the resilience and ambition of SMEs, particularly their priority to expand across Asia. As a bank that is deeply rooted in the region, we are committed to helping SMEs innovate and grow with our efficient banking solutions, extensive regional connections and market insights. By adding our strengths to our customers, we strive to support them in realising their long-term ambitions.”Challenges and support needs for business expansion in Asia While the desire for growth is evidential, respondents also highlighted many significant challenges, for example legal, tax, and compliance issues, which have topped the list that 42% of onshore GBA and 38% of Hong Kong respondents citing this as a primary concern. Cultural differences, language barriers and unfamiliarity with new markets also emerged as notable hurdles. To facilitate seamless business expansion, 31% onshore GBA and 28% Hong Kong respondents indicated that they have a strong need for access of financing. Demand for information on market entry strategies and local regulations ranked second. Insights on regulatory issues, partnership models, and localisation tactics can smoothen the expansion process in unfamiliar markets, allowing SMEs to avoid costly missteps when setting up operations. Thirdly, efficient banking solutions with cross-border payments and collections capabilities enable SMEs to streamline cross-border operation and remove pain points such as time cost and any potential complexity that arises. DBS Hong Kong SME Banking conducted a survey titled “Business Perspectives on Growth, Expansion, and Challenges in Asia & expectations on the 2024 Policy Address in Hong Kong” interviewing 200 SME business owners and decision-makers in Hong Kong and onshore GBA in September 2024. The survey aimed to explore SMEs’ expansion plans and opportunities in Asian markets, as well as their business priorities and expectation regarding the upcoming “2024 Policy Address”.[END]
About DBS DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world. Recognised for its global leadership, DBS has been named “World’s Best Bank ” by Global Finance, “World’s Best Bank ” by Euromoney and “Global Bank of the Year ” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank ” by Euromoney and the world’s “Most Innovative in Digital Banking ” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia “ award by Global Finance for 15 consecutive years from 2009 to 2023. DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience. With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com .
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