70% of Singaporeans concerned about higher household expenses: Study
70% of Singaporeans concerned about higher household expenses: Study. A recent UOB study found that over 70% of Singaporeans are concerned about rising household expenses. Due to rising prices and an uncertain economic outlook, this represents an 11-point increase over last year. Around 70% of Singaporeans anticipate the country will enter a recession within the next six months, a 7% increase from the previous year.
UOB surveyed over 3,500 people in five markets in June for the third edition of its annual study. There are around 1,000 Singaporeans of various ages and socioeconomic backgrounds among them. Consumers’ top priorities, according to the research, include having enough money, planning ahead for retirement, and being able to purchase vital things for themselves and their families. Consumer spending has returned to pre-pandemic levels, according to Ms Jacquelyn Tan, UOB’s head of group personal financial services, as economies around the world reopen. This comes after several years of steadily rising savings as Covid-19 decreased travel.
“Looking ahead to the fourth quarter, expenditure will continue to rise due to the forthcoming holiday and travel season,” she told reporters on Wednesday. “However, I believe it will normalize to some extent because this is also a savings market that we have seen overall.” Consumers are now spending more, with the average ticket size of ordinary daily expenses increasing from January to July, adjusted for inflation, when compared to the same period last year. The average cab fare has soared by 114%. Utility costs rose by 22%, fuel costs rose by 15%, and food costs rose by 10%.
Singaporeans, on the other hand, plan ahead by investing their money and protecting themselves against unexpected disasters. In July and August, the average placement of UOB clients in fixed deposits — interest rates for these products have risen across banks in recent months — jumped by 37% compared to the first six months of 2022. During the same time period, purchases of government assets such as Singapore Savings Bonds and Treasury bills surged by 462%.
Meanwhile, enrolment in insurance policies has climbed by 20% this year compared to the same period last year.
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