Hong Kong, May 27, 2007 - Hong Kong SMEs are losing
competitiveness to their counterparts in South Korea, according to the UPS Asia
Business Monitor (ABM) 2008, an annual survey conducted on competitiveness and
issues facing SMEs in Asia.
According to the findings, Hong Kong SME competitiveness slipped from third
to fourth position in the Asia Pacific region, behind China, Japan, South Korea
and is now on par with Singapore. Only 52% of respondents considered SMEs in
Hong Kong to be competitive, a decrease of nine percentage points compared to
2007.
"Hong Kong SMEs feel they are on slippery ground and are losing confidence in
economic and business prospects amid growing uncertainties in the macro
environment," said KK Leung, Managing Director of UPS Hong Kong and Macau.
Losing confidence in economic and business
prospects
Signs that confidence is eroding can be seen in Hong Kong
SMEs' attitudes towards economic and business prospects, which have dropped by
1% and 5% respectively. The majority of respondents (58%) indicated they were
likely to freeze hiring, with only 33% expected to increase workforce in 2008.
As a market that is heavily reliant on the U.S. economy in terms of trade
exports, financial markets and the linked currency system, the majority of SMEs
in Hong Kong felt that the struggling U.S. economy would hamper their businesses
(57%). Hong Kong SMEs were also uncertain about China, with 40% of respondents
regarding China as both a threat and a boost to their business.
Government should play a bigger role
Hong Kong is
perceived as a vibrant and successful free-market economy. However, SMEs in Hong
Kong feel that the government should play a greater role in helping them stay
competitive. Similarly, 85% of respondents felt that the government should take
a bigger role in sustainability practices while only 10% felt that they could
take on more direct responsibility.
"While Hong Kong SMEs are resilient and possess a strong 'can-do' spirit,
they recognize the government could better support them in the increasingly
challenging operational environment," Mr KK Leung continued.
Supply chain management: a solution to enhance SME
competitiveness
To stern the slide in competitiveness, Hong Kong
SMEs could take a closer look at the actions taken by their South Korean
counterparts. South Korea has the highest number of SMEs (69%) who believe they
are very effective in managing their supply chains. In contrast, the majority of
SMEs in Hong Kong reported that they were still experimenting ways to manage
their supply chain (30%) or under-utilizing the power of the supply chain
(31%).
Growth opportunities
With transport and logistics (19%)
presenting the biggest growth opportunities to SMEs in Hong Kong compared to
other Asian markets, Hong Kong sees huge opportunities to maintain its position
as an international logistics hub in future. SMEs may leverage the opportunity
to enhance competitiveness by practicing effective supply chain
management.
In addition to transport and logistics, financial services (75%), leisure and
tourism (47%) and retail (37%) continue to be the most promising sectors for
Hong Kong SMEs. Furthermore, new opportunities are also found in business
services as 35% of respondents view it as the most promising sector for 2008
(2007: 10%).
Despite SMEs in Hong Kong having mixed feelings towards China, 74% of
respondents feel that in order to sustain Hong Kong's growth against competition
they must continue to integrate economically with mainland China.
On the other hand, in light of the U.S. economic slowdown and prospects of
recession, there will be less reliance on trade with North America. Alternative
markets such as Middle East, Latin America and Europe may create opportunities
for Hong Kong SMEs.
"Although 2008 will be a year full of uncertainties, we believe the
fundamentals of the Hong Kong business environment are still strong. We are
confident that Hong Kong SMEs can eventually regain their competitive position
and confidence level if they can embrace the growth opportunities in a timely
manner and using their resources innovatively, "Mr KK Leung concluded.
UPS, which celebrated its 100th anniversary in 2007, is the world's largest
package delivery company and a global leader in supply chain services, offering
an extensive range of options for synchronizing the movement of goods,
information and funds. Headquartered in Atlanta, Ga., UPS serves more than
200 countries and territories worldwide. UPS's stock trades on the New
York Stock Exchange (UPS) and the company can be found on the Web at www.ups.com.
Notes to Editors
- UPS Asia Business Monitor series provides the latest insights into the
changing opinions, attitudes and habits of business leaders from the region's
small and medium sized enterprises.
- UPS Asia Business Monitor 2008 surveyed 1,201 decision makers of SMEs
between December 18, 2007 and January 24, 2008. Interviews were conducted
by an independent research organization, TNS, using the respondents' native
language in Hong Kong. SMEs are defined as companies with fewer than 250
employees.
- Interviews were conducted in the following 12 markets: Australia (100
respondents), China (150), Hong Kong (100), India (100), Indonesia (50), Japan
(100), Korea (100), Malaysia (100), the Philippines (101), Singapore (100),
Taiwan (100) and Thailand (100).
- Respondents were from a range of industries: automotive, garments &
textiles, healthcare & pharmaceuticals, toys & sporting goods,
electronics & electricals, gifts & housewares, timepieces, jewellery
& optical goods, and others.
- The average SME has been in business for nearly 22 years.
- Graphs and charts from the UPS Asia Business Monitor 2007 as well as
interviews with third-party spokespeople are available by contacting Ria Choi at
UPS Hong Kong on +852 2738 5685 or cria@ups.com, or Queenie Tsao at Ogilvy Public
Relations Worldwide on +852 2884 8544/ +852 9651 2423 or queenie.tsao@ogilvy.com.
Except for historical information contained herein, the statements made in
this release constitute forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Such forward-looking statements, including statements regarding the
intent, belief or current expectations of UPS and its management regarding the
company's strategic directions, prospects and future results, involve certain
risks and uncertainties. Certain factors may cause actual results to differ
materially from those contained in the forward-looking statements, including
economic and other conditions in the markets in which we operate, governmental
regulations, our competitive environment, strikes, work stoppages and slowdowns,
increases in aviation and motor fuel prices, cyclical and seasonal fluctuations
in our operating results, and other risks discussed in the company's Form 10-K
and other filings with the Securities and Exchange Commission, which discussions
are incorporated herein by reference.
|
|
 |
UPS Pressroom |
|
|
Read press releases, announcements and other media-related information about UPS.
|
|
 |
|
View History