DBS Hong Kong has released a survey on the city’s business outlook. SMEs are adopting AI and digital tools at nearly half the rate of large and mid-sized firms, the findings show.

Some 62% of large and mid-sized companies reported full or partial integration of AI and digital technologies, compared with 38% of SMEs.

Skills shortages and data security concerns topped the list of barriers to further adoption, each cited by 37% of respondents.

Even so, most respondents remain upbeat about the city’s economic prospects.

Of those surveyed, 63% feel positive or very positive about the outlook for local businesses over the next 12 to 18 months.

The findings were published ahead of Hong Kong’s first Five-Year Plan and annual Policy Address.

The survey drew responses from 250 Hong Kong-based business owners and senior decision-makers.

Respondents came from SMEs as well as large and mid-sized companies. Fieldwork ran between 6 August and 7 September 2026.

“With over 60% of businesses expressing optimism about the outlook, Hong Kong’s corporate sector is approaching the future with a constructive mindset, prioritising innovation and customer experience,”

said Boris Chan, Managing Director and Head of Institutional Banking Group, DBS Hong Kong.

Over the next three to five years, 53% of respondents named product or service innovation as their top strategic priority.

Cost optimisation and efficiency ranked second at 46%. Customer experience enhancement followed at 31%.

Nearly half of respondents (49%) said tax incentives and financial support would do the most to stimulate investment.

Cross-border trade promotion followed at 40%. Support for technology adoption came next at 35%.

On the Northern Metropolis, 30% of respondents named cross-border collaboration and mainland market access as the leading opportunity. Another 36% said financial incentives would encourage greater participation.

Featured image: Edited by Fintech News Hong Kong, based on image by meshcube via Magnific