Hong Kong Business Confidence Survey Reveals Impact of Political Climate and Costs

The Influence of the Political Climate on Business Confidence

Hong Kong's business confidence is feeling the strain from the recent political climate and rising costs. The German Chamber of Commerce Hong Kong conducted a business confidence survey that illustrates these concerns. As stated by Johannes Hack, the president of the chamber, there is an increasing sentiment that Hong Kong is becoming 'just another Chinese city', complicating the narrative of its unique status.

Survey Insights on Business Confidence Levels

The survey encompassed responses from 119 business executives, revealing that the overall business confidence score is at 3.36, up from 2.30 in 2022 but still lower compared to 2019’s 3.37. Respondents rated taxation highly at 4.47, while the political climate lagged behind at 2.75, showcasing a sense of unease among businesses.

• The cost of housing remains a substantial problem.
• 44% of respondents foresee a decline in political climate competitiveness.
• Concerns about the national security law impact on business operations are prevalent.

Challenges in Staffing and Competitive Salaries

With the national security law and high costs being major points of concern, attracting talent is becoming increasingly difficult. 38.3% of companies predict worsening competitiveness in staff recruitment, showcasing a relentless challenge for industries dependent on skilled labor.

In summary, while optimism remains among businesses in Hong Kong regarding their futures, the challenges stemming from the political climate and costs present barriers to sustainable growth.