HK Construction Association polls find confidence in the sector remains weak, rated 4.6 out of 10

A survey has found that confidence in Hong Kong's construction industry remains wewak -- with some in the sector calling on the government to simplify procedures for importing labour and to expand the list of eligible job categories for importation.

The Hong Kong Construction Association commissioned the Centre for Communication and Public Opinion Survey in the Chinese University of Hong Kong to poll 107 member companies over the phone and in questionnaires in October and November last year.

The findings show that the industry's confidence rating for the next one to two years stands at just 4.6 out of 10, reflecting a generally pessimistic outlook. The main reasons cited include a serious shortage of both public and private construction projects as well as tighter bank lending, which has led to cash-flow pressure.

Only 28 percent of respondents believe future project volumes and profits will be enough to sustain their businesses -- a drop of more than ten percentage points compared with last year.

As for the business environment, companies identified rising construction costs, tightened regulations and lowered productivity as the three biggest challenges.