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Singaporeans saving on household expenses

Anuradha Shukla | Feb. 17, 2012
Suspect the country will not be out of an economic recession within 12 months.

Singaporeans are saving on household expenses, according to fourth quarter global online consumer confidence findings from Nielsen.

Forty-four percent of the respondents surveyed in the fourth quarter (Q4) do not believe that the country will be out of an economic recession within 12 months.

The Nielsen Global Survey of Consumer Confidence and Spending Intentions Q4 2011 indicates that consumer confidence in Singapore remains at a two-year low with an index score of 94.

The nation was at 10th place out of 14 countries in the Asia Pacific region, ahead of New Zealand, Taiwan, Japan and South Korea.

"As job cuts across the globe made the news, more consumers here are worried about their jobs. The higher volatility in asset prices and the uncertainty about the future course of the global macroeconomic environment will also have weighed on sentiments here," said Joan Koh, managing director, Nielsen Singapore. "Consumers here are generally continuing to hold back on their spending with a wait-and-see attitude, and we expect this conservative stance to continue in 2012 along with their propensity to save."

Investment in stocks/mutual funds

About 69 percent of Singaporeans are channelling spare cash into savings and about 32 percent are putting spare cash into shares of stocks/mutual funds.

"The majority of Singaporeans are putting some spare cash into savings, indicating a desire to seek ways to preserve and grow their wealth," said Koh.

"The interest rate environment may have prompted some to invest in higher-return alternatives. Singaporean's continuing appetite for savings as well as investments present significant opportunities for the financial services industry to offer even more wealth management solutions."

Global online consumer confidence findings from Nielsen also indicate that 55 percent of Singaporeans are concerned about their future job prospects and only one in two consumers in Singapore are optimistic about the state of their personal finances.

Twenty-nine percent of Singaporeans think the country is in an economic recession and 13 percent are concerned about maintaining a work/life balance.

 

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