Hong Kong SMEs upbeat about outlook after weathering fifth wave of coronavirus outbreak, survey shows
- Easing of restrictive social distancing rules can help immensely, according to an SME survey conducted by CPA Australia
- Some 60 per cent of SMEs in survey said they could cope with the fifth wave of the coronavirus outbreak
Hong Kong’s small and medium-enterprises (SMEs) are confident about their outlook in the second quarter, as they expect a boost from the upcoming easing of social distancing rules, consumption vouchers and employment support programme.
Six in 10 SMEs said they could cope with the fifth wave of the coronavirus outbreak while many expect their business to grow or at least return to previous levels in the April to June period, according to a CPA Australia survey of 300 finance executives from March 18 and 23.
The government is expected to announce an easing of social distancing restrictions from April 21, which were implemented after the highly contagious coronavirus Omicron variant took hold in January. While the fifth wave of the outbreak has so far infected nearly 1.18 million people and claimed 8,614 lives, daily cases have dropped to around 1,400 from a peak of over 50,000 in early March.
The restrictions, the government’s most stringent since the start of the pandemic more than two years ago, hurt retail and restaurant businesses hard in the first quarter. The latest data for February showed that retail sales fell 14.6 per cent year on year to HK$25.2 billion (US$3.2 billion). It was also the worst since sales slumped 23.1 per cent in June 2020.
There were 340,000 SMEs in Hong Kong at the end of last year, which employed 45 per cent of the private workforce.
“The experience of 2021 has shown that retail and restaurant businesses post strong growth once the social distancing rules are relaxed,” said Janssen Chan, chairman of CPA Australia’s SME committee for Greater China region. “The government’s other government relief measures will also support struggling SMEs.”