Survey shows Singaporeans will maintain or increase savings levels

Uncertain about how long the economic crisis will last, most Singaporeans are planning to maintain or increase the amount of their savings, but at the same time, they are not going to reduce in catering and entertainment expenses. According to a twice-yearly Consumer Purchasing Priorities survey conducted by MasterCard, about 34% of Singaporeans are planning to have more savings in the coming 6 months. On the other hand, 54% indicated that they would at least maintain their savings from the last six months. Among them, 79% stated that, due to uncertain economic environment, they intended to take precautionary savings. The ratio is higher than the whole Asia-Pacific region. For those 11% of Singaporeans, they plan to reduce the savings and claimed that they had not earned enough money. In additions, people’s savings for retirement (73%), leisure travelling (25%) and investment (22%). Half of the respondents indicated that they will save at least 20% from their income. The survey was conducted from 23 March 2009 to 18 April 2009, which covered 21 markets in the Asia-Pacific Region, Middle-East and Africa. The participants are middle-class or above, and qualified to apply for credit cards. As compared to the whole Asia-Pacific Region, more Singaporeans take precautionary savings and plan to have more saving in the coming six months. Many of them plan to reduce discretionary spending. If taken the ratio of consumers with precautionary savings as a measurement of confidence indicator, Chinese consumers have most confidence among China, Hong Kong and Taiwan. There are only 48% of people In China have precautionary saving, as compared to 67% in Hong Kong and 79% in Taiwan. In this regard, people in Taiwan are more like us. For expenditure, 55% of Singaporean stated that their discretionary spending for the coming half year are more like those in the first half of year. 41% plan to reduce their discretionary spending while only 3% plan to increase their spending. As compared to the survey in November 2008, they are more willing to spend as 64% indicated that they planned to reduce their spending. The survey indicate that catering and entertainment (43%) continue to account for the largest part of consumer spending, follow by apparels (40%) and leisure travelling (30%). As compared to the survey in November 2008, the second largest consumer spending, health care spending is no longer among the top three. Catering and entertainment expenditure is the primary spending for the 17 markets who participated in the survey. In Thailand, even 100% of people indicate that they will continue to spend in this expenditure. On this trend, MasterCard Asia Pacific economic advisor explains that spending in catering and entertainment is the most important factor for Asian in their social life. However, they spend less is other aspects, consumers are not planning to reduce their catering and entertainment expenditures because of economic crisis. Disclaimer: The publication contains information in summary form and is therefore intended for general guidance only. This publication is not intended as legal, accounting or other professional advice and should not be relied upon as such. If legal, accounting or other professional advice or expert assistance is required, the services of a competent professional should be sought. Neither K C Yin & Co. nor any related entity shall have any liability to any person or entity that relies on the information contained in this publication.