Small and medium-sized enterprises (SMEs) in Hong Kong and Singapore recognise a broad range of business risks, yet many remain underinsured, according to the latest QBE SME surveys.
Conducted between late 2024 and early 2025, the surveys collected insights from 600 SME decision-makers in each market, highlighting concerns about financial stability, workforce challenges, risk management, and insurance purchasing trends.
SMEs in both Hong Kong and Singapore cited rising costs and economic uncertainty as key concerns.
In Hong Kong, 60% of respondents reported increased operational expenses and reduced profitability, compared to 40% last year. In Singapore, 66% noted higher business costs, up from 50% in 2024. Many also reported difficulties with cash flow and access to financing, with approximately half of SMEs in both markets citing these as significant challenges.
Despite these financial pressures, the survey found a gap between risk awareness and insurance adoption. In Hong Kong, 65% of respondents expressed concern about income loss due to business interruption, yet only 24% had policies to cover this risk. Similarly, while 65% worried about losing employees and 64% about equipment failure, only 19% and 25% respectively had corresponding insurance coverage.
In Singapore, the trend was similar. Some 74% of SME leaders were concerned about potential business interruptions, but only 23% had insurance protection. Likewise, while 72% saw inventory damage or loss as a major risk, just 29% had coverage in place.
Andex Fung (pictured), head of SME segment, Asia at QBE, warned that while cost concerns are understandable, the financial impact of unexpected disruptions can be far greater.
“Business owners should consider adequate protection against the full range of threats that can disrupt their operations. We understand that many SMEs have expressed concerns over increased costs and reduced profitability this year, but we would urge them to consider insurers like us as partners who can help businesses navigate these challenges – by offering advice and comprehensive risk management solutions tailored to their specific needs,” he said.
Workplace safety remained a priority for SMEs in both markets, but some areas saw a slight decline.
In Hong Kong, 92% of respondents said they communicate workplace safety policies to employees, up from 90% last year. Awareness of mandatory employees’ compensation insurance also rose to 83%, compared to 76% in 2024. However, the adoption of return-to-work policies declined from 86% to 82%, and workplace safety incidents increased slightly from 22% to 25%.
Singapore saw a marginal drop in workplace safety engagement. In 2024, 81% of businesses reported communicating employee coverage and benefits, but this figure fell to 78% in 2025. Similarly, awareness of work injury compensation insurance dropped from 70% last year to 66% this year.
The survey also highlighted a growing focus on employee well-being. Mental health awareness remained strong in Hong Kong, with 95% of businesses recognising its importance, consistent with 94% in 2024. In Singapore, 93% of respondents saw mental health as a priority, up from 89% last year. More companies are introducing policies to support well-being, including flexible work arrangements and remote work options.
Talent shortages remain a pressing issue for SMEs in both cities. In Hong Kong, 50% of businesses identified talent management as a key challenge, up from 39% in 2024.
To address this, 43% of SMEs have increased salaries or offered bonuses, compared to 29% last year. Flexible work schedules are also becoming more common, with 39% of businesses implementing them, up from 26%.
In Singapore, 49% of respondents cited talent retention as a key issue, an increase from 37% in 2024. Flexible work arrangements were the most popular strategy for attracting and keeping employees, with adoption rising from 32% last year to 51% in 2025.
For the first time, the survey examined employer attitudes toward an aging workforce. In Hong Kong, employees aged 65 and older now represent nearly 14% of the labour force, and 49% of SMEs reported that at least 10% of their workforce belongs to this age group. In Singapore, 41% of SMEs reported similar workforce demographics. Many employers cited experience, loyalty, and stability as key strengths of older employees.
“With over 70% of this age group in employment in Singapore, workers aged 65 or over are an increasingly important part of Singapore’s labour force. With so many companies focused on hiring the best staff, whatever their age group, this is highly encouraging. We will certainly be doing more in this space as this is a societal issue that insurers can play an active part in,” said Ronak Shah, CEO of QBE Singapore and CEO of wholesale markets Asia.
Cybersecurity threats remain a growing concern, with businesses in both markets experiencing more incidents.
In Hong Kong, 33% of SMEs reported a cyberattack or data breach in the past year, an increase from 30%. In Singapore, the figure rose from 25% to 27%. However, investment in cybersecurity measures remains inconsistent.
In Hong Kong, the percentage of SMEs using security software declined slightly from 62% to 60%, and the number conducting cybersecurity training for employees fell from 45% to 43%. Meanwhile, cyber insurance adoption increased modestly, from 39% to 43%.
In Singapore, cyber insurance adoption dropped from 38% to 36%, though 51% of SMEs without coverage said they were considering purchasing a policy.
“While local SMEs are aware of their knowledge gap on cyber risks, they are still not compelled to purchase insurance, on the basis of cost control,” said Shun Quan Goh, head of underwriting, retail & SME at QBE Singapore.
The survey also revealed shifting trends in how SMEs purchase insurance. In Hong Kong, 68% of businesses now prefer in-person interactions when purchasing insurance, up from 57% last year. The use of brokers and banks for insurance transactions has increased, while reliance on online platforms has declined.
In Singapore, offline purchasing remained dominant, with 65% of respondents preferring face-to-face interactions, compared to 66% last year.
Most SMEs in both cities favoured bundled insurance policies covering multiple risks. In Hong Kong, 85% of respondents preferred comprehensive coverage, compared to 73% in Singapore.
