Getforme Singapore SURVEY SHOWS SINGAPOREANS UPBEAT ABOUT THE NEAR FUTURE FrontPage Edition 4 November 2006

Global consumer confidence remains at 2005 levels, with Indians leading the world on the 2006 ACNielsen Global Consumer Confidence Index followed by the Norwegians and Danes. Singapore ranks 11th globally.

According to ACNielsen, the world’s leading market research and information company, the 2006 ACNielsen Global Consumer Confidence Index of 98 is at par with the November 2005 Index.

India tops the world for the third time in a row since the Index was established in early 2005, with an index of 131. Scandinavians made their way into the top rankings as the world’s second and third most optimistic markets with Norway and Denmark hitting 130 and 127 respectively.

“Back home, Singaporeans registered an increased level of optimism in this latest survey compared to the previous period and a year ago. The Singapore Consumer Confidence Index climbed 7 points to reach a high of 110—surpassing the regional average of 94,” observed Mr Ashok Charan, Managing Director of ACNielsen Research Singapore. “It represents a year on year improvement from May 2005 where Singapore’s Consumer Confidence Index was 99.”
　

Asia Pacific continues to house the most optimistic consumers of all with six of the Global Top 10 markets surveyed situated in the region. Compared to the previous period, moreover, Hong Kong (111), Indonesia (111), Singapore (110), and the Philippines (100) showed strengthened optimism. In turn, New Zealand and Korea had the most marked dip in confidence although New Zealand consumer sentiments remain well above the regional average. Koreans continued to post the lowest consumer confidence in the region (54).

Major concerns

Despite a sustained level of confidence, consumers continue to cite the Economy (47%), Health (37%), and Job Security (31%) as their major concerns for the next six months. The Economy ranked highly in Asia Pacific and drew greater attention in North America. Europeans rank foremost in terms of concern for Health.

Led by Thailand (77%), Malaysia (71%), and Indonesia (70%), eight of the 10 markets expressing the greatest concern for the Economy originated from Asia Pacific.
In Singapore, the Economy (54%), Job Security (45%), and Health (42%) continue to be the top three concerns amongst locals. With the anxiety over Health and Terrorism receding over the last six months, Singaporeans are now more focused on the Economy.

“Fundamentals such as the economy and employment will remain as top concerns among locals even in good times. Singaporeans’ optimistic sentiment is set to continue, in light of the positive economic growth in the first half and favorable outlook reported by the government for the year,” commented Mr Charan.

Perceptions on job prospects, personal finances, and intention to spend
Reflecting the mildly positive mood in the region as a whole, majority of the Asia Pacific markets have favorable expectations on job prospects and on consumers’ financial outlook over the next 12 months. Nonetheless, the region’s consumers continue to adopt a cautious stance on spending at the present time.

“It is only in India, where optimism has been strong over three consecutive periods, that consumers voice clearer confidence about spending,” said Mr Charan. “The rest of the region’s consumers may be waiting for more sustained positive signals from the economy before showing greater willingness to spend.”

In Singapore, locals have registered greater optimism in the recent survey on all aspects—job prospects (+7%), personal finances (+6%), and intention to spend (+7%), compared to six months ago.

It’s worth mentioning that Asian markets of Singapore, Hong Kong and Indonesia are among the most optimistic consumers during this round of the survey.

Asia Pacific has the most savers in the world

Continuing the trend from previous surveys, the world’s top savers are still to be found in Asia Pacific. A majority of 54 percent of Asia Pacific consumers will put their spare cash into savings, compared to 37 percent of North Americans and 29 percent of Europeans. Asian markets occupy every position in the “Top Ten Global Savers” list, with Thailand (70%) topping the global ranking with the highest percentage of savers and a significant 15 percentage points increase compared to six months ago.

“Economic and cultural factors influence Asians’ penchant to save for a rainy day with levels higher than other part of the world. With more than a third of consumers in Asia Pacific concerned about job security, putting spare cash into savings is certainly the safest financial option for consumers who are insecure about their jobs,” said Mr Charan.

And how do consumers worldwide use their spare cash after covering essential living expenses? Holidays/Vacations topped the list (34%), followed by Out of Home Entertainment (33%), Paying off debts/credit card bills/loans (32%), and Clothes shopping (31%).
While Asia Pacific consumers have consistently preferred Holidays/Vacations (37%) as the way to indulge themselves, priorities for other spending options have changed over time. Consumers are now spending more on Out of Home Entertainment (30%) and Clothes shopping (28%) over New Technology (24%) gadgets.

Amongst Singaporeans, the key priorities continue to be saving their spare cash (60%), followed by spending on Holidays/Vacations (49%). Next on the list are Clothes shopping (29%), Paying off debts/credit card bills/loans (28%), and spending on New Technology gadgets (25%).

The ACNielsen Online Consumer Confidence and Opinion Survey is the largest half-yearly survey of its kind aiming at gauging current confidence levels, spending habits/intentions and current major concerns of consumers across the globe. The ACNielsen Consumer Confidence Index is developed based on consumer’s confidence in the job market, status of their personal finance and their readiness to spend. The latest survey, conducted in late May/early June, polled about 21,780 internet users in 40 markets from Europe, Asia Pacific, North America to the Baltics.

Markets Covered:

Australia (Aus), Austria (AT), Belgium (Bel), Canada (Can), Denmark (Den), Finland (Fin), France (Fra), Germany (Ger), Greece (Gre), Hong Kong (HK), India (Ind), Indonesia (Indo), Ireland (Ire), Italy (Ita), Japan (Jpn), Korea (Kor), Malaysia (Mal), Netherlands (NL), New Zealand (NZ), Norway (Nor), Philippines (PH), Poland (Pol), Portugal (Por), Russia (Rus), Singapore (SG), South Africa (SA), Spain (Spa), Sweden (Swe), Switzerland (Swi), Taiwan (TW), Thailand (TH), Turkey (TR), United Kingdom (UK), United States (US), Czechoslovakia (Cze), Hungary (Hun), Vietnam (Vnm) and the Baltics (Bal) which covers Estonia, Latvia and Lithuania.

Click here to download the full report.

Source: http://sg.acnielsen.com Press Release 4 Sep 2006

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