Singaporeans cut back on shopping, entertainment, holidays

Singapore

SINGAPOREANS were more watchful about their discretionary spending in the second quarter of 2017, according to a Nielsen survey.

The latest Nielsen Global Survey of Consumer Confidence and Spending covering the second quarter found that local consumers cut back on lifestyle expenses, such as shopping for new clothes (54 per cent of respondents), out-of-home entertainment (45 per cent), and holidays and short breaks (43 per cent).

But overall, Singaporeans were less apprehensive in the second quarter about the economy and job prospects, compared with the fourth quarter of 2016.

The Singapore consumer confidence index edged up to 89 points for Q2 2017, up from 86 points in Q4 2016, said the Nielsen report released on Tuesday.

The Nielsen consumer confidence index measures perceptions of local job prospects, immediate spending intentions and personal finances. A reading above the baseline of 100 indicates optimism while a reading below the baseline indicates pessimism.

The survey showed that 51 per cent of Singapore respondents perceived that the country is in an economic recession in Q2, compared to 62 per cent who thought so in Q4 2016, based on the survey findings.

The Q2 online survey was conducted from May 9, 2017 to May 27, 2017 among more than 30,000 respondents with Internet access in 63 countries, including 501 respondents from Singapore.

The survey also found that 31 per cent of Singapore respondents are concerned about job security, while 29 per cent of them are worried about the economy.

Managing director of Nielsen Singapore Johan Vrancken said: "Singapore has seen a steady growth in its economy for the second quarter, propelled by the expansions in the manufacturing and services sectors."

Meanwhile, perceptions over excellent or good job prospects in the next 12 months have improved (36 per cent in Q2 versus 32 per cent in Q2 2016).

Mr Johan said: "Singaporeans have weathered the storm, with resident unemployment decreasing amid the challenging economic landscape.

"The government's key actions such as industry transformation and national SkillsFuture initiative have enabled Singapore to be well-placed for the future to become a value-creating, innovation-led economy."

However, Singaporeans continue to be mindful about the economic outlook and their job security, he noted.

Besides a pullback in discretionary spending, as much as 43 per cent of Singaporeans switched to buying cheaper grocery brands, while 39 per cent of them saved on gas and electricity.

The survey also found that Singaporeans are among the world's top savers and planners of retirement.

More than six in 10 Singaporeans (66 per cent) have put their spare cash in savings, while 28 per cent of locals invested in shares or mutual funds, and topped up their retirement fund.

Said Mr Johan: "Singapore has constantly remained one of the top nations on savings and investments.

"This reflects Singaporeans' disposition to be prudent and place priority on their savings and retirement planning to ensure a sizeable nest egg for their later years."

On a larger level, eight out of 14 Asia-Pacific markets - the most confident in the world - posted scores above the optimism baseline of 100 points, with Hong Kong reaching the milestone for the first time since the third quarter of 2015.

Consumer confidence scores ranged from a high of 130 in the Philippines to a low of 63 in South Korea, with the biggest increase in South Korea (up 20 points), followed by Japan (up 13 points) and Malaysia (up 10 points). Countries that showed confidence declines include India (down seven points) and Thailand (down three points).