Hi, My daughter was recently given some Kmart brand swaddle pouches which are fully enclosed with a zip front opening and no arm holes for 0-3 m. I read a review from Hip Dysplasia Australia which said these were too narrow and could cause issues. Are these safe or would sleeping bags with arm holes or sleeping suits be preferable.

Red Nose recommends using a light cotton or muslin wrap when swaddling baby.
Red Nose recommends that any swaddle should be firm, but not too tight that it restricts the movement of the baby’s hips or chest.
The swaddle suits you refer to are very popular, but there are some concerns with these types of products.
Sleeping bags (with arms out) can be used from birth, but ensure that it fits properly & there is no risk of bag “riding up” & covering baby’s head/face.
https://rednose.org.au/article/what-is-a-safe-sleeping-bag
Red Nose has the following information about swaddle suits.

Wrapping & swaddle products.

A wide range of infant care products designed as infant swaddles, infant wraps, and wearable blanket, including products which attempt to combine the features of an infant wrap with an infant sleeping bag, have proliferated on the market and are available to parents.

It is important to be aware that there is very limited evidence to support the use of specific products as devices to promote infant settling, back sleeping position and no evidence to support these products as a strategy to reduce the risk of infant death. Parents are advised to follow the principles of safe wrapping if they choose to use infant wrapping as an infant care strategy. Parents are also advised to follow any safety advice that accompanies any infant wrapping or swaddle products they purchase, but to be aware that there is very little evidence available that supports the choice of one product over another.

In particular it is extremely important to ensure that the product fits the baby and is appropriate for their developmental stage. For example:

The material of the wrap or swaddle should not cover the face or head, particular if baby sleeps with arms in different positions. If the item is too big for the baby, some zipped swaddle suits that enclose baby’s hands, have been shown to allow material to cover baby’s face and nose when baby raises their hands above their head during sleep. All sleeping attire designed to cover the baby’s shoulders should have separate neck and arm holes or should ensure that they do not allow the face covering if the baby was to move their arms in different positions.

Any product that is used as clothing on the baby or in the baby’s sleep environment should not restrict the movement of a baby who is able to roll. Wrapping should be discontinued as soon as the baby shows the first signs of being able to roll. Positioning aids that restrict movement of the baby are not recommended and have been associated with infant deaths.
https://rednose.org.au/article/wrapping-babies