Singaporeans are gradually becoming more concerned about the condition of the economy and will probably tighten their belts further in the coming year, according to the latest Aviva Consumer Attitudes to Savings (CAS) study.
The study, which polled around 1,000 Singaporeans, revealed that 32 percent of the respondents believe that the general economic situation will decline in the next 12 months, while 36 percent expect it to remain unchanged in the same period.
The results were in stark contrast to the CAS study performed six months ago, where 44 percent of Singaporeans surveyed believed that the economy will improve in the coming year. Now, only 24 percent of Singaporeans have the same view.
This wary economic assessment has driven consumers to save; around 37 percent of the respondents believe that it is more vital to consolidate their finances, rather than try to acquire more.
Now, only 39 percent are willing to face a higher level of risk for a higher potential yield compared to 43 percent a year ago. This implies that consumers are becoming more adverse to risk, which is predictable, given the volatile economy.
“The shift in Singaporeans’ sentiment within the space of just six months is definitely surprising, especially as Singapore is yet to be heavily impacted by the decline in the global economy or the Eurozone debt crisis. The findings of the CAS study suggest that Singaporeans are finely attuned to global economic affairs and are actively responding by revising their approach to savings and investment,” explained Simon Newman, CEO of Aviva Singapore.
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