Shanghai International Shipping Institute

FEDEX research reveals that Hong Kong small and medium enterprises (SMEs) are exporting as much within Asia Pacific as they are to other regions.

More than 70 per cent of these SMEs are now engaging in exports, a significant increase over the past three years.

The study, entitled "Global is the New Local: The Changing International Trade Patterns of Small Businesses in Asia Pacific", was conducted by Harris Interactive on behalf of FedEx Express to offer insights into import and export opportunities and challenges facing SMEs.

"Local SMEs are facing a rapidly-changing business environment," said Anthony Leung, managing director, FedEx Express, Hong Kong and Macau. "We are pleased to see that local SMEs are increasingly expanding their global footprint and are generating more revenues from exports."

Mr Leung said FedEx was committed to supporting businesses going global, and as one of the main logistics providers in Hong Kong.

Research, he said, now shows exports now account for 88 per cent of the total revenues of Hong Kong SMEs, which is equivalent to HK$11.27 billion (US$1.4 million) and higher than the Asia Pacific average of HK$9.41 billion.

The total export revenues of Hong Kong SMEs have increased by 24 per cent (HK$9.05 billion) over the last two years. China (52 per cent), Taiwan (37 per cent) and Japan (30 per cent ) are the top export markets among Hong Kong SMEs in the Asia-Pacific region, whereas Europe and Central/South Asia are the top export markets outside the Asia-Pacific region.

More than one third, or 39 per cent, of Hong Kong SMEs expect their exports in Asia Pacific to increase in the next 12 months, while 32 per cent of them expect their exports outside of Asia Pacific to increase in the next 12 months. The optimism of the SMEs is driven by the strong growth of the global economy, especially the fast-growing economies in the Asia-Pacific region.

Some 30 per cent of Hong Kong SMEs expect to increase their imports in the next 12 months. Also, 55 per cent of Hong Kong SMEs agree imports will help them lower their production costs by sourcing goods overseas at a lower cost, while more than 40 per cent of them agree imports will help them improve the variety and quality of their products.

Most Hong Kong SMEs are already using e-commerce (87 per cent) and mobile-commerce (79 per cent) to source goods and find new customers outside of Hong Kong. The research shows that more SMEs are leveraging the power of social media in expanding their businesses. An overwhelming eight out of 10 SMEs are now using social media, with more than half (52 per cent) using this channel to export their products or services to overseas customers.