DBS Hong Kong has announced the findings of a survey revealing the top priorities and evolving operational landscapes of Small and Medium-sized Enterprises (SMEs) in Hong Kong.
The survey reveals a significant surge in SME demand for government support in financial and market expansion, a clear trend towards adopting AI and digital technologies, and a growing interest in the potential relevance of stablecoins for future business operations.
Financial support and funding emerged as the top priority, with a significant 60% of SMEs identifying it as their primary requirement for government assistance. This marks a substantial increase from 35% in the 2024 survey, underscoring a heightened focus on capital and liquidity.
Following closely, SMEs also anticipate market expansion support (43%) and sought business matching and networking opportunities (34%).
Looking ahead to the next 12 months, SMEs are strategically focusing on growth and efficiency, with market expansion (52%) topping their agenda, closely followed by cost management and efficiency improvements (43%) and product or service diversification (43%).
The responses underscore the evolving needs of Hong Kong’s SME sector, which is increasingly looking to both government support and technological innovation to overcome current challenges and drive future growth.
Lareina Wang, Managing Director and Head of SME Banking, DBS Bank Hong Kong, said, “While traditional concerns like funding and market expansion remain paramount, we are seeing a growing recognition of the transformative power of AI and digital technologies in the SME sector.”
Accelerating AI and digital technology adoption
The survey also sheds light on the accelerating integration of AI and digital technologies within the SME landscape. Around one-third (31%) respondents have already fully or partly adopted these advanced solutions into their business operations, signalling a notable shift towards digital transformation.
This trend is set to continue, as a further 40% of SMEs are actively exploring or planning to use such technologies, driven by the desire for enhancing operational efficiency and competitiveness. The survey shows that 60% of SMEs leverage AI and digital tools for streamlining operations and reducing costs, 47% aims to automate routine tasks to free up staff for strategic work and 46% seeks to enhance product or service quality.
However, the SME sector faces clear challenges in the path of AI and digital adoption. Respondents frequently cited high costs (41%) and concerns over data security and privacy (41%) as significant hurdles. Additionally, 38% highlighted a lack of reliable external support or advice as a barrier to effective implementation.
Stablecoins: an emerging area of interest
Reflecting the increasing prominence of digital assets in the financial landscape, the survey explored SMEs’ perceptions of stablecoins. A notable 59% of respondents anticipate that stablecoins may become relevant to their business operations in the future.
SMEs identified several potential benefits of stablecoins, with easier and cheaper cross-border transactions (44%), faster payments (43%), lower transaction costs (43%), and reduced currency or foreign exchange risk (40%) being most frequently cited.
