SMEs in Asia confident about hiring in 2015

After a tough economic year across Southeast Asia, small and medium businesses (SMEs) in Singapore, Malaysia and Hong Kong are anticipating a more positive outlook in 2015.

Despite variances in each country's business expectations, there is expected to be greater emphasis on hiring across the region, as reported in CPA Australia's Asia Pacific Small Business Survey.

Mainland China SME leaders were the most optimistic, with 66% expecting business growth in the coming year. Malaysian SMEs followed closely, with 60% expecting business growth in 2015, and an equal number saying that they grew their business in 2014.

In Singapore, the past year saw muted small-business growth, with about half of SMEs (51%) stating that they grew. However, a slightly higher number (57%) expect business growth in 2015.

Hong Kong small businesses are the least likely of the eight markets in APAC to expect their business to grow in the year ahead, with only 39% expecting growth.

This may be a result of "increasing costs at the domestic level, particularly rent and staff costs, and increased local competition."

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Hiring is relatively strong on each country's agenda, with more than half of Malaysian SMEs (52%) expecting to add to staff numbers over 2015.

Singapore SMEs follow suit, with 35% of respondents stating their hiring intentions. Despite a modest business outlook, SMEs in Hong Kong also expect to recruit at 23%.

"Singapore small business sector is showing its resilience and maturity with many firms focussing on reviewing cost structures, increasing marketing and improving customer retention over the past year," said Alex Malley, CPA Australia chief executive.

At the same time, "trading conditions are certainly challenging and when you see the more positive results in Mainland China and Singapore, it is clear businesses in Hong Kong need to step up to meet the competitiveness challenge," said Patrick Yeung, divisional past president – Greater China, CPA Australia.

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Attitudes towards social media were extremely promising across all three countries. A majority of the respondents said they already use social media for business purposes - 82% in Singapore, 93% in Malaysia, and 90% in Hong Kong - such as, for communicating with customers, and promoting the business to potential customers.

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