The Hong Kong General Chamber of Commerce (HKGCC) on Monday urged the SAR government to offer more help for smaller businesses to go digital and utilise artificial intelligence technology so as to adapt to the ongoing economic transformation.

The suggestion came ahead of Chief Executive John Lee’s Policy Address on Wednesday.

In an interview with RTHK, the chamber's chief executive officer, Patrick Yeung, said small and medium-sized enterprises (SMEs) are a key engine of the city's economic growth.

While sentiment has slightly improved over the past two months, with certain chamber members in the retail sector reporting growth, many companies are still under a lot of stress, especially those in the catering sector, Yeung said.

He said it is essential for firms to have extra funding to digitise their businesses and improve operations while developing new products.

"It’s about how we can help them go digital. Getting them onto the right platforms and using new tech like AI faster and more effectively," he said.

"Right now, labour and rent costs in Hong Kong are still pretty high, so if the government extends the SME Financing Guarantee Scheme, it could help them with their finances and cut their debt burden."

Separately, Yeung said Hong Kong should look into creating more venues for large-scale events to drive tourism growth, following the completion of construction projects at the West Kowloon Cultural District and in Kai Tak.

He added that the government could also promote more tourism routes related to the city's historical sites and the arts.