The Canadian insurer Sun Life Financial has found through its survey that Asians are fairly optimistic and resilient despite the current economic downturn.
The survey covered more than 7,000 respondents in 19 cities from China, Indonesia, India, the Philippines, and Hong Kong; Singapore was not included. The survey was carried out in the first quarter of 2009, when the market turmoil started to make life harder for Asians.
India, Hong Kong, and China composed the most optimistic respondents. Almost 50 percent or more of respondents from these countries said that they were either very optimistic or optimistic about their economic situation amidst the crisis.
Respondents from Hong Kong were the ones who felt most of the effects of the crisis. About 47 percent said this year’s economic climate is worse or much worse than 2008. When the crisis started, the first ones to report a steep decline were Singapore and Hong Kong. Compared to their regional neighbours, they were the first to experience “sharp economic contractions.”
With regard to investments, respondents expressed their preference for cash and liquidity. Interest in mutual funds and stocks declined.
What’s interesting is that despite this preference, most respondents made no changes in their investment behavior. In Hong Kong, however, about 57 percent of the respondents have withdrawn all or some money from their investments.
In the Philippines, China, India, and Indonesia, meanwhile, property and cash were the top choices in terms of assets. In Hong Kong, stocks and property were the top choices.
Pollution, recession and inflation were the top worries. Even parents’ health and children’s education were among the top concerns. The survey showed that most respondents felt accountable for their parents’ medical bills, their children’s and their own as well.
Many Asians are still optimistic that the economy will improve in the next two years, and many believe that it will rebound within a year.