Brain drains have been rated the second biggest challenge that large companies in Hong Kong believe they will face for the rest of 2021, apart from reduced cross-border travel, a survey conducted by the Hong Kong General Chamber of Commerce has found.
The chamber polled 409 businesses and classified them into large companies and small and medium-sized enterprises. Brain drains came in as as the second major challenge that large companies think they need to deal with in the near future with a rating of 3.55 out of 5.
For companies of all sizes, the biggest impediment was still reduced cross-border travel, with a rating of 3.91 out of 5 for large companies and 3.88 out of 5 for SMEs.
The chamber also upgraded its forecast for Hong Kong’s economic growth in 2021 to 6.3 percent amid global economic recovery, up 2.8 percentage points compared to its forecast in December last year.
The survey, however, showed that SMEs were less optimistic, as only 23 percent of SMEs expect their business performance will be above pre-pandemic levels by the end of 2021, less than 37 percent for large companies.
“More supportive measures will be needed to promote digitalization to help SMEs. This is borne out by the survey’s findings, as 27 percent of SMEs cited the lack of financial resources as the key factor for their lack of investment in technological capabilities compared to 16 percent for their larger counterparts,” said Chamber CEO George Leung.