Singapore shows highest rise in consumer confidence in SEA

It’s the 12th most optimistic country in the world.

Unlike in a number neighboring Southeast Asia countries, consumer confidence in Singapore was on the rise in 3Q15, according to Nielsen’s 3Q15 Global Survey of Consumer Confidence and Spending Intentions.

The project surveys 30,000 respondents with internet access across 60 countries about perceptions of local job prospects, personal finances, and immediate spending intentions. Consumer confidence scores above 100 indicate optimism, and those below 100 indicated pessimism.

Across Southeast Asia, Singapore reflected the highest growth in consumer confidence. Decline was observed in the Philippines (122 to 117 points), Indonesia (120 to 116), and Malaysia (89 to 78).

Singapore’s score of 101 in 3Q15 is two points higher than in the preceding quarter, and beat the global average of 99. Worldwide, Singapore was the 12th most optimistic country.

The survey showed that SEA still leads consumer confidence, and that majority allocated spare cash to savings.

“Consumers in the region are certainly consistent in their desire to build a nest egg for the future, and quarter after quarter we observe this trend,” notes Regan Leggett, Nielsen Client Service Director in Southeast Asia, North Asia, and Pacific. 

66% of Singaporeans plan to save spare cash, 32% plan to buy new clothes, 28% plan to invest in stock, and 24% plan to pay off debts, credit cards and loans. The survey also reflected that at 49%, Singapore’s percentage of respondents who allocated their spare cash for holidays is the highest in the Southeast Asian region. 

“While the survey revealed that Southeast Asian consumers remain among the world’s most optimistic, they have been less upbeat with recessionary sentiment permeating in three markets out of the six measured in the region,” asserts the report.

The Philippines, Vietnam, and Singapore were the only countries to display a drop in recessionary sentiments. Recessionary sentiments were down by 1pp in the Philippines, 3pp in Vietnam, and 5pp in Singapore.