HK SMEs gloomy, eye recovery after 2010 - UPS

Small-to-medium enterprises (SMEs) in Hong Kong are pessimistic about a quick economic rebound, and anticipate a global economic recovery only after 2010, freight forwarder United Parcel Service Inc said on Tuesday.

In a bid to ride the economic storm, SMEs in Asia are tightening their cash management, reducing costs and exploring new revenues sources, a UPS survey said.

They are also hoping for greater government support and access to funding options.

"Our customers continue to cut costs and also downtrade in services," Derek Woodward, Asia-Pacific president of the world's biggest package delivery firm, told a news briefing in Hong Kong.

The survey was conducted in January and February across more than 10 Asia-Pacific markets and polled about 1,200 well-established SMEs.

In Hong Kong, 95 percent of respondents felt the economy will stay the same or worsen in 2009.

Singapore SMEs had the least optimistic view about the economic growth prospects across the Asia Pacific region, with 96 percent of the respondents having a gloomy outlook.

But India, Taiwan and China are the most optimistic, believing the global economy will recover between 2009-10 thanks to government stimulus measures, the survey said.

HONG KONG, May 26 (Reuters)