Secretary for Commerce and Economic Development Algernon Yau said he thinks people in business are smart over where opportunities lie and Hong Kong's being a tariff-free economy makes it operationally convenient for them.

Speaking on RTHK's Overview Policy programme on Wednesday, he said the government will step up promotion as Hong Kong seeks to enter into more free-trade agreements with other economies.

Small and medium enterprises, Yau added, need to adjust their operational strategies according to the global situation, and the key to helping them lies in extending Hong Kong's business network.

"The business sector is very smart," he said.

"People in business are surely aware of where the opportunities are.

"Hong Kong is tariff-free. But many economies, many countries, are not."

Yau noted that e-commerce firms have been a major source of inspiration for the retail sector.

He said smaller local companies can look for opportunities in Belt and Road countries, especially those in the Middle East and Asean.

The commerce chief stressed that InvestHK has done very well last year in bringing in nearly 10,000 new firms from the mainland and overseas, up around 10 percent from 2023.

He said this was a testament to the commerce sector expressing confidence in Hong Kong's business environment.