Bankbazaar Singapore – 21, December 2017
The Singapore Consumer Confidence Index has gone up by 5 points from 89 to 94 in Q3 2017, on a quarter-on-quarter basis. Based on the Nielson Global Survey of Consumer Confidence and Spending report, analysts have noted that while more than half the Singaporeans surveyed are splurging on holidays and vacations, a significant number are using their savings and spare cash to invest in retirement schemes, shares and mutual funds. Many continue to top up their retirement funds to secure their future at the face of increasing global economic instability.
Compared to 66% of the Singaporeans who were putting their excess earnings into investment and savings funds in Q2 2017, 67% of Singaporeans have placed their spare cash into savings and retirement schemes, making Singapore occupy the fourth position in the world in terms of savings.
The survey also indicated that Singaporeans on an average was placing 26% of their savings in retirement funds, 20% for paying health insurance premiums and investing 24% in shares and stocks.
The signs of apprehension over the economy in the country has eased this quarter to 42% from 51% last quarter. This is in line with analysts’ expectations because the trend has been continuing over the past few quarters. The sign of apprehension over the economy had eased from 62% in Q4 2016 to 51% in Q2 2017.
The top concerns for the locals continued to be job security at 30%, marginally down from 31% last quarter and economy which remains unchanged at 29% Q-o-Q.
While the recent survey results indicate that over 66% of the Singapore locals expect a turnaround in the Singapore economy due to robust expansions in the service and manufacturing sectors, a large section of the population continues to look at the economic outlook with apprehension and feel that job security continues to be an area of concern.
However, many continue to be optimistic. The consumer confidence index indicated that almost 41% see better local job prospects in the next 12 months. An improvement in the consumer confidence is seen by many as a barometer for the economy itself and positive sentiments suggest that the recovery is already underway.
Despite concerns over the health of the economy, almost 53% of the Singaporeans indicated that they planned to spend a significant portion of their income on long vacations and expensive holidays.
A significant growth was also observed in other self-indulgent and luxury spending as one in every five Singaporeans is expected to buy new technology and home entertainment products while one in every three Singaporeans indicated that they were willing to spend on new clothes.
Singapore has always been one of the top nations in terms of savings and investments. However, spending on self-indulgence is also high, showing that people continue to have positive sentiments despite some concerns regarding the future.