Vietnam leads Asean consumers in improved sentiment for macroeconomic landscape
UOB finds financial preparedness among young people ‘visibly lacking’, with 7% of Gen Zs in the region feeling completely unprepared in terms of emergency savings and insurance coverage
[SINGAPORE] Consumers in South-east Asia have become more optimistic about the macroeconomic environment, even as their sentiment towards their personal finances cooled slightly, a UOB study showed on Tuesday (Sep 2).
On the whole, the UOB Asean Consumer Sentiment Index came in at 54, an improvement of one point from the year before. A level above 50 reflects general optimism.
While this is the sixth edition of the Asean Consumer Sentiment Study, it is the first time the bank is publishing the index. The figure for 2024 was calculated retroactively, based on last year’s data.
“Consumer sentiment is a vital indicator of economic health,” said Jacquelyn Tan, head of group personal financial services at UOB. “With the new regional index, we hope to offer businesses insights into consumers’ spending and behaviour in the near term.”
Asean consumers were more upbeat about the broader economy this year, with the sub-index rising by four points to 58.
In particular, the score for the current economic environment was 57, one point lower than what these consumers felt about the future.
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Personal finance
Consumers in the region remained optimistic about their personal finances, but slightly less so than in 2024 as the sub-index score fell by one point.
In addition, the proportion of respondents who expected themselves to fare as well, or better, financially next year dropped to 56 per cent, from 59 per cent the year before.
More were also worried about the possibility of pay cuts, with this proportion growing four percentage points to 46 per cent.
Fewer respondents were concerned about rising household expenses, but the proportion of those worried about long-term financial commitments remained the same.
Regional differences
The study involved 5,000 respondents spread out equally among five Asean countries: Indonesia, Malaysia, Singapore, Thailand and Vietnam.
Vietnam led the pack with an index score of 67, a three-point increase from last year.
Indonesia followed with a score of 55, even though it recorded a three-point decrease. In third place, Malaysia clocked the highest jump of 11 points to reach a score of 53.
Singapore and Thailand scored 47 each.
UOB noted that Singapore recorded the largest decline – 10 points – as consumers in the Republic expressed dampened sentiments across all indicators, especially the macroeconomic environment.
“The shift in sentiment is likely to be in response to the US tariff announcement on Apr 2, which triggered one round of financial market volatility ahead of the survey period of May to June,” said Suan Teck Kin, global economics and markets research head at UOB.
He added that this reaction underscores the open and trade-dependent nature of Singapore’s economy, which is highly sensitive to developments in the external environment.
Thailand consumers scored the lowest in sentiment towards macroeconomic factors, despite being relatively upbeat about their personal finances.
Financial preparedness
The study also found that inflation remained a top worry for 59 per cent of respondents, with Singapore consumers topping the list.
This was despite easing concerns on the rising costs of living due to inflation – 59 per cent of respondents were “somewhat worried” or “very worried”, three percentage points lower than in 2024.
UOB customer spending data showed that in Singapore, the average ticket size of daily living expenses rose in the first half of 2025, with that of dining and transport each rising 6 per cent year on year.
In coping with these concerns, Asean consumers demonstrated “strong financial preparedness”, with 79 per cent of respondents saying they had sufficient emergency funds to cover unforeseen circumstances, UOB said.
Meanwhile, the bank noted that financial preparedness among young people was “visibly lacking”, with 7 per cent of Gen Zs in the region feeling completely unprepared in terms of emergency savings and insurance coverage.
The study also revealed a shift in younger consumers’ financial priorities, with 73 per cent of Gen Zs and 71 per cent of millennials in Asean preferring to spend for enjoyment now, rather than worrying about the future.
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