Based on a MasterCard survey, unlike most other neighbouring countries in Asia-Pacific, Singapore does not show any sign to reduce their spending on renovations and property.
Consumer Purchasing Resilience’s MasterCard Worldwide Index of rates the planned expenditure categories’ resilience to cutbacks, with 100 being the most resilient and zero being the most vulnerable. Singapore was rated with a 77 resilience score in the category of renovation and property.
The categories of services and goods that consumers will get to spend for the coming six months had been considered by the index, including their implication to consumers, and if the discretionary spending will be lessened by the consumers.
The wellness and fitness sector in Singapore is the second-highest with 73 resilience score, and the personal travel behind it at 59. Entertainment had a 54 resilience score, while accessories and fashion garnered a 49 resilience score.
Singapore, similar with most of other markets, failed to enter a score in consumer electronics segment, because of having below 30 percent market response that was not accepted. There were a total of 14 markets that had been surveyed, but only Vietnam, with an average resilience score of 58.2 and Indonesia with 59.9, managed to produce scores for the consumer electronics segment.
“There is a high rate of home ownership in Singapore and house-proud consumers here will continue to spend on renovations and property category, to finance their mortgages and spruce up their homes,” said MasterCard’s economic adviser for Asia-Pacific Yuwa Hedrick-Wong.
“Spending on fitness and wellness has become increasingly important, especially for younger and better educated consumers and, therefore, it is not surprising that this category has emerged with a high resilience score,” said Mr. Yuwa.
The mean resilience index score of Singapore for the general purchasing was 62, following the mean resilience index score of Asia-Pacific at 67. Meanwhile, the highest mean resilience index score went to China at 81, followed by Japan at 76. India and Indonesia, however, tied for the third highest score at 74.
Throughout Asian region, China won the highest resilience score in two various categories–renovations and property with an average score of 85 and personal travel with 75. The entertainment and dining category was dominated by Japan at 81, and India managed to seize the top spot for wellness and fitness at 90. The highest resilience score in accessories and fashion was taken by Indonesia at 76.
“In general, the spending priorities of Chinese and Indian middle-class consumers are relatively resilient, showing their disposable income has so far remained healthy,” said Dr. Hedrick-Wong
About 6,000 consumers were included in the survey included, and about 400 of them were Singaporeans.