More than 60 percent of Hong Kong enterprises expect improved business this year despite economic uncertainties, a report by UOB showed
The study, which interviewed 550 businesses across various industries, found 64 percent of them anticipated an improved performance in 2024 with a focus on cost reduction and digitalization.
Despite facing challenges such as rising operational costs and high inflation, the study said that overall business sentiment in Hong Kong remains positive, with over one in five businesses surveyed expressing a very positive outlook on the current business environment.
Nearly two-thirds anticipate revenue growth in 2025 and 2026, adding that the optimism is fueled by strategies such as diversifying product offerings, enhancing customer experiences and increased adoption of digital solutions to drive growth.
Nearly 80 percent of businesses are increasingly considering overseas expansion within the next three years. Popular destinations include mainland China (52 percent), Taiwan (31 percent) and Southeast Asia (31 percent).
However, about 40 percent of businesses said they encountered obstacles such as regulatory issues, compliance challenges and tax complexities when venturing abroad.
The UOB survey also revealed that nearly nine in 10 companies in Hong Kong have implemented digitalization within at least one department, with 26 percent indicating that digitalization has been implemented across the entire business.
