Workers in Hong Kong are more likely than those elsewhere in Asia to see their wages frozen this year, a study has shown.
Firms in Hong Kong who plan to increase salaries will probably raise them by only 2 per cent on average, the lowest level in Asia and equal only to increases planned by Japanese companies.
Hong Kong businesses are also the most likely in Asia to freeze wages, according to the survey by HR Business Solutions (Asia), a consulting firm focusing on compensation and benefits.
The survey, which covered 88 companies in 16 Asian countries, found that 44 per cent of the 46 Hong Kong companies surveyed planned to freeze wages, the highest proportion in Asia.
The findings highlight the poor state of the SAR economy.
Gross domestic product picked up in the third quarter last year to a seasonally adjusted 2.5 per cent from the quarter before, but that was mainly because of booming exports while the domestic sector remains weak. Unemployment is also near a record high.