The Chinese Manufacturers' Association of Hong Kong on Monday called on finance chief Paul Chan to introduce measures to boost local spending in his next budget.

The association said it expects the city's economy will be mainly driven by domestic demand in the upcoming fiscal year, as the global outlook remains uncertain amid a potential escalation of geopolitical risks.

The association's president, Wingco Lo, suggested the government could work with businesses to launch a lucky draw campaign.

"While some promotional campaigns are already being run by individual retailers, they are fragmented," he said.

"So our proposal is a government-led campaign, which is expected to be more effective in consolidating resources, creating a citywide impact and generating multiplier effects for stronger overall results."

As the government would only have to provide a small amount of subsidies, Lo said he believes the expenditure would remain manageable.

His group also called for tax concessions for SMEs, saying they are dealing with various economic challenges, such as high operating costs and strong competition.

Looking ahead, the association said it expects to see a moderate but slower growth in exports this year.

Lo explained that this is due to global uncertainties, despite a rise in retail sales and tourist arrivals.