Hong Kong SMEs delivered a decade's strongest performance in 2025, CPA Australia says

Many of Hong Kong's small and medium-sized enterprises expect growth this year after a decade's strongest performance in 2025, with 71 percent sharing this optimism, a CPA Australia survey showed.

The survey found that 68 percent of SMEs recorded growth last year, mainly thanks to customer loyalty and a strong workforce.

Cliff Ip, councilor of CPA Australia's Greater China divisional council, said SMEs could grow sustainably and improve solvency due to last year's economic growth, driven by capital markets, tourism, consumption, and property market stabilization.

Ip said Hong Kong's policies help hedge against rising geopolitical risks, including low, simple taxes that attract international companies and investors. He also noted these foster international partnerships for local SMEs.

Technology was also a key driver of SMEs' business growth, with 64 percent reporting that last year's technology investment helped improve profitability, up from 59 percent in 2024.

Davy Leung, deputy chairperson of CPA Australia's SME and Entrepreneurship Committee of Greater China, suggested the government consider revamping the Technology Voucher Program to support digitization. 

She also said that rising costs remained a key challenge for SMEs last year, but the city's low inflation helped cushion the impact.