Environment

The latest research from the Grant Thornton International Business Report 2009 (IBR) shows that a percentage balance* of 27% of Hong Kong privately held businesses consider the local business community as environmental friendly. The figure is below the global average of 30%. In comparison, Shanghai (24%), Beijing (-12%), Guangzhou (-5%) and Taiwan (10%) all record lower-than-average percentages.   

When asked to rate the environmental friendliness of their business community, the 7,200 senior executives in privately held businesses across 36 economies created a global picture of perceptions of environmental friendliness. Asian countries including Philippines (78%), India (69%) and Thailand (68%) top the league table.   

Sector focus

IBR has been enhanced this year to include insights from sector experts around Grant Thornton as well as providing businesses practical tips for survival and reasons to be cheerful in these difficult economic times. These new elements add to each focus report of the sector over the past year, outlook for the next 12 months and IBR data and analysis for the key topics.

Construction and real estate

Global construction and real estate sector has encountered tough conditions over the past year as both public and private sector projects are hit by the global recession. While 2009 is tipped to be a subdued year for the sector, the mild economic upturn predicted in 2010 should translate into better prospects for businesses.

Financial services

The upheaval in global markets has created a climate of great uncertainty for the financial services sector. Many large banks in mature economies are burdened with toxic debts and have suffered huge losses. However, some privately held businesses included in the IBR survey appear to have avoided the worst of the fallout, with some even using the situation to their advantage.

Hospitality

Steadily rising global affluence, the upsurge in cheap travel and the development of middle class tourism in populous economies such as mainland China and India provided a strong impetus to the international tourist industry in recent years. But the onset of the global recession saw the start of a much more difficult era for the sector. Businesses have to adjust their strategies dramatically just to survive.

Retail

After a sustained boom from 2002 to 2007, the economic background has turned sharply against the sector over the past year. High inflation in food and energy eroded spending power in the first half of the year and this was followed by severe strains stemming from the global economic slowdown.

Technology

As the economic outlook darkened during 2008, and the full impact of the credit crunch became widely felt, the worldwide technology industry suffered along with most sectors. Business investment in mature markets has slowed and while some emerging markets are still seeing some growth, the main priority for many businesses now is survival. Although 2009 looks a bleak year, the technology sector is tipped as one of the first to recover when the downswing ends.

____________________________________________________
*  The figure is the percentage balance of the respondents who state “very friendly” and “friendly” less those who state “unfriendly” or “very unfriendly”. The highest possible figure countries are able to record is +100% and  the lowest is -100%.