Key talent and business concerns for SMEs in Hong Kong and Singapore

Talent retention, an ageing workforce, workplace safety and health, as well as financial fallout – discover the sentiments of SMEs in both economies as they navigate these challenges.

Talent retention, an ageing workforce, workplace safety and health, as well as financial fallout are among the top concerns for SMEs in Hong Kong and Singapore, according to the latest findings from QBE Insurance.

The survey has gathered views from 600 business executives in Hong Kong and 600 decision-makers in Singapore respectively, covering a wide range of business risks and opportunities.

Results revealed a significant increase in concerns among Hong Kong SMEs about recruitment, training, and retention, with 50% of respondents identifying it as a key challenge, up from 39% in 2024.

Similarly, in Singapore, nearly half (49%) of respondents view talent and manpower as a key business challenge, rising from 37% in 2024.

To attract and retain workers, Hong Kong SMEs see increased pay and bonuses as crucial for retaining skilled staff, with 43% of SMEs saying so, compared to just 29% last year.

Flexible working arrangements have also emerged as one of the most effective strategies, with 39% of respondents in Hong Kong and 51% in Singapore believing that.

Other measures taken by Hong Kong SMEs to enhance employee satisfaction include the introduction of relaxation rooms or spaces for employees to recharge during work hours.

Yet in Singapore, heightened staff concerns aren’t backed up with action: the number of SMEs who expect to make changes to their workforces in the next 12 months has declined. Some 46% expect changes in staff training, down from 52% a year earlier; while 36% expect to strengthen their staff, against 42% last year; with 40% expecting changes to the size of their business, down from 44% in 2024.

Managing older workers

The employment rate for workers aged 65 and above has been increasing in both economies. The survey showed that 49% of SMEs in Hong Kong and 41% in Singapore reported that 10% or more of their workforce is made up of this demographic.

Being experienced and skilled (34% in Hong Kong vs. 44% in Singapore), loyal (25% vs. 39%), and stable (26% vs. 31%) are several advantages of this age group as identified by SMEs in both places.

A strong focus on work safety and mental health

Workplace safety and health are another main concern for SMEs.

In Hong Kong, 92% of respondents said they have communicated coverage and benefits to their employees, up from 90% last year. Similarly, 83% in 2025 reported awareness of employees’ compensation insurance, compared to 76% in 2024.

However, the number of businesses with return-to-work policies has dropped slightly year-on-year, from 86% to 82%. The proportion of Hong Kong SMEs that have experienced between one and three workplace safety and health events marginally rose from 22% in 2024 to 25% in 2025.

In Singapore, attention to workplace safety and health issues remains high but has slipped slightly year-on-year. In 2024, 81% of respondents said they have communicated coverage and benefits to their employees, versus 78% in 2025. While last year, 77% said they have return-to-work processes in place, compared to 72% this year.

Additionally, in 2024, 70% said they are fully informed of work injury compensation, versus 66% in 2025. This year’s low number of accidents may be behind these reductions: just 27% of businesses experienced between one and three workplace safety and health events over the past year.

SMEs in both economies have placed a strong focus on mental health. The majority of respondents in Hong Kong (95%)  and Singapore (93%) said it is either very important or somewhat important, up from last year’s 94% and 89%, respectively.

More SMEs are implementing measures to improve both mental and physical wellbeing, with 46% (vs. 39% last year) in Hong Kong and 59% (vs. 44% last year) in Singapore offering flexible working hours for improved work-life balance, and 40% (vs. 28% last year) in Hong Kong and 45% (vs. 35% last year) in Singapore offering work from home arrangements.

Business risks

In Hong Kong, anxiety over rising property rental prices has been cited by 67% of respondents as the number one business concern for the second year running, up from 64% in 2024. Nearly two-thirds (65%) of businesses said that loss of income due to business interruption is a key business concern. Similarly, 65% and 64% of respondents are concerned about the impact of losing staff and equipment malfunction respectively.

In Singapore, 74% of SME leaders are highly and moderately concerned about loss of income due to businesses interruption, 72% have high and moderate levels of concern for damage to or loss of inventory, and 72% are highly and moderately concerned about fraud and fraudulent payments.