Over half of Hong Kong SMEs expects to overcome 5th COVID-19 wave

Whilst 57% see their revenue will remain the same or grow in the next three months.

Despite the fifth COVID-19 surge in Hong Kong, 55% of small and medium-sized enterprises (SMEs) in Hong Kong are confident that they will survive the worsening health crisis, according to a poll conducted by CPA Australia, a global professional accounting body. 

CPA Australia's 13th Asia-Pacific Small Business Survey also found that 57% of SMEs project that their revenue will stay normal or increase in the next three months.

On the negative effects of the fifth wave, 35% of SME owners said business operations will most likely be hit by the pandemic, followed by 26% of respondents who said cash flow will be bruised during the surge.

Also, survey results showed that 42% of respondents said relaxed social distancing measures will positively affect their business in the next three months, whilst 18% of respondents said employment support schemes will have a positive impact on their business. This was followed by 12% of respondents who believed consumption vouchers will have the most positive effect on their operations.

It can be recalled that in March 2022, the Hong Kong government declared it will relax most of social distancing measures from 21 April in three phases as long as the epidemic situation shows no signs of rebound and the number of infections continues to decline. 

Janssen Chan, the chairperson of CPA Australia’s SME Committee in Greater China, said Hong Kong businesses are already resilient and adaptable amidst the impact of the fifth wave because of online and digital payments options. 

“The pandemic is a major catalyst for transforming business models and consumer spending patterns. In Hong Kong, more consumers are purchasing online and using digital payments,” he said in a statement.

“With social distancing restrictions set to relax from mid-April and the roll-out of stimulus measures such as the e-consumption vouchers, small businesses should continue innovating, digitalising and updating their business plans to ensure they are best placed to rebound in the second half of 2022,” added Chan. 

Nearly 300 Hong Kong-based accounting and finance professionals working for SMEs were respondents in the survey, which was conducted from November to December 2021.