Consumers in the Asia/Pacific, Middle East and Africa region – especially those who are younger - are saving up for a rainy day. According to the latest survey from MasterCard, the proportion of younger consumers below the age of 30 who are saving more in the days ahead is higher than that of older consumers. Malaysians between the ages of 18 to 30 years old (28%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (19%), 46 to 55 years (22%) and 56 years and above (15%).
The MasterCard survey provides valuable insights into consumers’savings behavior for the 6 months ahead. The survey is based on a survey of 9,211 consumers in 21 markets , conducted between 23 March and 18 April 2009. The Index and its accompanying reports do not represent MasterCard financial performance.
In 8 of the 21 markets across the region, a majority of consumers are looking to save more in the coming six months. Topping the list of savers is Vietnam, with 52% of consumers intending to save more over the next six months. This is followed by India (47%), United Arab Emirates (47%), South Africa (47%), New Zealand (46%), Philippines (45%), Qatar (44%) and Australia (43%).
At the other end of the spectrum, Egypt has the highest percentage of consumers planning to save less at 63%. In Egypt and Taiwan (39%), the majority of the consumers are looking to save less. The majority of consumers in the rest of the markets intend to maintain their level of savings.
Uncertainty over the economy and hence the need to be prepared for unforeseen emergency expenditures (71%) is the top reason cited by consumers who are planning to maintain or increase their level of saving in the next six months. Thailand (95%) had the highest proportion of consumers concerned about the economic uncertainty, compared to China (48%) with the lowest proportion among markets in the region.
“Saving levels are a leading indicator of consumers’future spending patterns. A lot of households save so that they can spend later on the purchase of large ticket items. From this perspective, such savings are merely indicators of future consumption. Precautionary savings are, however, qualitatively different. They represent a net subtraction of total spending because funds are put aside and untouched when people worry about the future. Therefore, precautionary savings affect consumer spending in ways that other forms of savings don't.
“Our latest survey shows that the percentage of households saving for precautionary reasons has gone up. While the increase is slight, we are still seeing an uptrend and this has implications in terms of consumption in the region,” said Dr. Yuwa Hedrick Wong, economic advisor, Asia/Pacific, MasterCard Worldwide.
Apart from having an emergency stash, the other main reasons for saving are for investing (46%), retirement (45%), and buying property (40%). The main reasons for consumers saving less are because that they feel they do not earn enough to save (61%), high inflation (34%) and simply because they believe in enjoying life now (29%). Egyptian consumers feel the strongest about not earning enough to save (82%), followed by Thai consumers (81%) and South African consumers (81%). The majority of the region’s consumers save between 1 – 10% of their income (27%), followed by 11 – 20% of their income (22%). Nine percent of the region’s consumers do not intend to save any of their income.
Market Highlights (Asia/Pacific):
Malaysia
• Male consumers (24%) in Malaysia are planning to save more compared to their female counterparts (23%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (28%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (19%), 46 to 55 years (22%) and 56 years and above (15%).
• The economic uncertainty has caused 70% of Malaysian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (79%) are most concerned about saving for a rainy day.
• Malaysian consumers are also saving for investments (59%), retirement (52%) and buying property (28%).
• The majority of Malaysian consumers (31%) plan to save between 1-10% of their income in the next six months.
Australia
• Male consumers (45%) in Australia are planning to save more compared to their female counterparts (41%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (66%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (46%), 46 to 55 years (31%) and 56 years and above (22%).
• The economic uncertainty has caused 56% of Australian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 18-30 age bracket (62%) are most concerned about saving for a rainy day.
• Australian consumers are also saving for buying property (44%), retirement (37%) and international personal air travel (36%).
• The majority of Australian consumers (37%) plan to save between 1-10% of their income in the next six months.
China
• Male consumers (15%) in China are planning to save more compared to their female counterparts (7%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (17%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (9%), 46 to 55 years (9%) and 56 years and above (7%).
• The economic uncertainty has caused 48% of Chinese consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 18-30 age bracket (53%) are most concerned about saving for a rainy day.
• Chinese consumers are also saving for investments (55%), consumer electronics (53%) and buying property (49%).
• An equal proportion of Chinese consumers (25% each) plan to save between 11-20% and 21-30 % of their income in the next six months.
Hong Kong
• Male consumers (28%) in Hong Kong are planning to save more compared to their female counterparts (20%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (39%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (18%), 46 to 55 years (17%) and 56 years and above (4%).
• The economic uncertainty has caused 67% of consumers from Hong Kong to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those above 56 years and above (73%) are most concerned about saving for a rainy day.
• Consumers from Hong Kong are also saving for retirement (49%), international personal air travel (44%) and investments (42%).
• The majority of consumers from Hong Kong (26%) plan to save between 1-10% of their income in the next six months.
India
• Female consumers (49%) in India are planning to save more compared to their male counterparts (46%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (55%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (41%), 46 to 55 years (45%) and 56 years and above (39%).
• The economic uncertainty has caused 79% of Indian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (82%) are most concerned about saving for a rainy day.
• Indian consumers are also saving for investments (65%), retirement (56%) and buying property (47%).
• The majority of Indian consumers (28%) plan to save between 11-20% of their income in the next six months.
Indonesia
• Male consumers (42%) in Indonesia are planning to save more compared to their female consumers (41%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (49%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (44%), 46 to 55 years (35%) and 56 years and above (30%).
• The economic uncertainty has caused 82% of Indonesian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. All the different age groups are as concerned about saving for a rainy day - 18-30 years old (82%), 31-45 years old (81%), 46-55 years old (82%) and those above 56 years old (82%).
• Indonesian consumers are also saving for investments (81%), retirement (67%) and buying property (61%).
• The majority of Indonesian consumers (33%) plan to save between 1-10% of their income in the next six months.
Japan
• Female consumers (22%) in Japan are planning to save more compared to their male counterparts (17%) in the next six months.
• Consumers between the ages of 31 to 45 years old (23%) are planning to save more in the next six months compared to the other age groups – 18 to 30 years (20%), 46 to 55 years (18%) and 56 years and above (8%).
• The economic uncertainty has caused 65% of Japanese consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 31-45 age bracket (72%) are most concerned about saving for a rainy day.
• Japanese consumers are also saving for retirement (30%), investments (18%) and international personal air travel (17%).
• The majority of Japanese consumers (36%) plan to save between 1-10% of their income in the next six months.
Korea
• Female consumers (22%) in Korea are planning to save more compared to their male counterparts (14%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (31%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (19%), 46 to 55 years (4%) and 56 years and above (8%).
• The economic uncertainty has caused 49% of Korean consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. 51% of Korean consumers however, do not see this as the main reason for saving more/same in the next six months. Among the different age groups, those in the 18-30 age bracket (58%) are most concerned about saving for a rainy day.
• Korean consumers are also saving for retirement (56%), buying property (28%) and investments (25%).
• The majority of Korean consumers (19%) plan to save between 21-30% of their income in the next six months.
New Zealand
• Male consumers (48%) in New Zealand are planning to save more compared to their female counterparts (43%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (73%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (42%), 46 to 55 years (41%) and 56 years and above (20%).
• The economic uncertainty has caused 49% of New Zealander consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. 51% of New Zealander consumers however, do not see this as the main reason for saving more/same in the next six months. Among the different age groups, those in the 46-55 age bracket (54%) are most concerned about saving for a rainy day.
• New Zealander consumers are also saving for retirement (54%), buying property (43%) and international personal air travel (43%).
• The majority of New Zealander consumers (39%) plan to save between 1-10% of their income in the next six months.
Philippines
• Female consumers (48%) in Philippines are planning to save more compared to their male counterparts (43%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (53%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (42%), 46 to 55 years (41%) and 56 years and above (37%).
• The economic uncertainty has caused 83% of Filipino consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 18-30 age bracket (89%) are most concerned about saving for a rainy day.
• Filipino consumers are also saving for investments (60%), retirement (57%) and consumer electronics (38%).
• The majority of Filipino consumers (47%) plan to save between 1-10% of their income in the next six months.
Singapore
• Female consumers (37%) in Singapore are planning to save more compared to their male counterparts (32%) in the next six months.
• Consumers between the ages of 31 to 45 years old (39%) are planning to save more in the next six months compared to the other age groups – 18 to 30 years (31%), 46 to 55 years (27%) and 56 years and above (36%).
• The economic uncertainty has caused 79% of Singaporean consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (86%) are most concerned about saving for a rainy day.
• Singaporean consumers are also saving for retirement (73%), international personal air travel (25%) and investments (22%).
• The majority of Singaporean consumers (31%) plan to save between 21-30% of their income in the next six months.
Taiwan
• Male consumers (26%) in Taiwan are planning to save more compared to their female counterparts (23%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (46%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (21%), 46 to 55 years (13%) and 56 years and above (15%).
• The economic uncertainty has caused 79% of Taiwanese consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 18-30 age bracket (87%) are most concerned about saving for a rainy day.
• Taiwanese consumers are also saving for retirement (60%), investments (39%) and buying property (39%).
• The majority of Taiwanese consumers (23%) plan to save between 1-10% of their income in the next six months.
Thailand
• Female consumers (39%) in Thailand are planning to save more compared to their male counterparts (24%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (38%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (30%), 46 to 55 years (26%) and 56 years and above (18%).
• The economic uncertainty has caused 95% of Thai consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 18-30 age bracket (99%) are most concerned about saving for a rainy day.
• Thai consumers are also saving for retirement (53%), emergency purposes (28%) and investments (26%).
• The majority of Thai consumers (45%) plan to save between 1-10% of their income in the next six months.
Vietnam
• The same amount of male consumers (52%) and female consumers (52%) in Vietnam are planning to save more in the next six months.
• Consumers who are above 56 years old (55%) are planning to save more in the next six months compared to the other age groups – 18 to 30 years (54%), 31 to 45 years (52%) and 46 to 55 years (47%).
• The economic uncertainty has caused 89% of Vietnamese consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 18-30 age bracket (90%) are most concerned about saving for a rainy day.
• Vietnamese consumers are also saving for investments (46%), buying property (37%) and purchase of car/motorcycle (34%).
• The majority of Vietnamese consumers (30%) plan to save between 1-10% of their income in the next six months.
Market Highlights (Middle East and Africa):
Egypt
• Male consumers (13%) in Egypt are planning to save more compared to their female counterparts (5%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (13%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (5%), 46 to 55 years (11%) and 56 years and above (5%).
• The economic uncertainty has caused 75% of Egyptian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (83%) are most concerned about saving for a rainy day.
• Egyptian consumers are also saving for buying property (44%), consumer electronics (41%) and purchase of car/motorcycle (33%).
• The majority of Egyptian consumers (48%) plan to save 0% of their income in the next six months.
Kuwait
• Male consumers (29%) in Kuwait are planning to save more compared to their female counterparts (26%) in the next six months.
• Consumers between the ages of 31 to 45 years old (30%) are planning to save more in the next six months compared to the other age groups – 18 to 30 years (26%), 46 to 55 years (28%) and 56 years and above (26%).
• The economic uncertainty has caused 68% of the consumers in Kuwait to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (71%) are most concerned about saving for a rainy day.
• Consumers in Kuwait are also saving for international personal air travel (72%), buying property (49%) and consumer electronics (48%).
• The majority of consumers in Kuwait (24%) plan to save between 21-30% of their income in the next six months.
Lebanon
• Male consumers (27%) in Lebanon are planning to save more compared to their female counterparts (21%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (29%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (24%), 46 to 55 years (15%) and 56 years and above (15%).
• The economic uncertainty has caused 66% of Lebanese consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 31-45 age bracket (71%) are most concerned about saving for a rainy day.
• Lebanese consumers are also saving for retirement (44%), purchase of car/motorcycle (42%) and buying property (37%).
• The majority of Lebanese consumers (29%) plan to save between 1-10% of their income in the next six months.
Qatar
• Male consumers (50%) in Qatar are planning to save more compared to their female counterparts (33%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (51%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (40%), 46 to 55 years (36%) and 56 years and above (44%).
• The economic uncertainty has caused 83% of consumers in Qatar to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (90%) are most concerned about saving for a rainy day.
• Consumers in Qatar are also saving for investments (62%), buying property (55%) and purchase of car/motorcycle (27%).
• The majority of consumers in Qatar (27%) plan to save between 1-10% of their income in the next six months.
Saudi Arabia
• Male consumers (31%) in Saudi Arabia are planning to save more compared to their female counterparts (18%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (29%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (24%), 46 to 55 years (20%) and 56 years and above (20%).
• The economic uncertainty has caused 62% of Saudi Arabian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (68%) are most concerned about saving for a rainy day.
• Saudi Arabian consumers are also saving for buying property (64%), purchase of car/motorcycle (60%) and consumer electronics (55%).
• The majority of Saudi Arabian consumers (21%) plan to save between 11-20% of their income in the next six months.
South Africa
• Male consumers (51%) in South Africa are planning to save more compared to their female counterparts (43%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (53%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (49%), 46 to 55 years (38%) and 56 years and above (33%).
• The economic uncertainty has caused 75% of South African consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 31-45 age bracket (77%) are most concerned about saving for a rainy day.
• South African consumers are also saving for investments (64%), buying property (55%) and retirement (52%).
• The majority of South African consumers (35%) plan to save between 1-10% of their income in the next six months.
United Arab Emirates
• Female consumers (47%) in United Arab Emirates are planning to save more compared to their male counterparts (46%) in the next six months.
• Younger consumers between the ages of 18 to 30 years old (53%) are planning to save more in the next six months compared to their older counterparts – 31 to 45 years (45%), 46 to 55 years (37%) and 56 years and above (43%).
• The economic uncertainty has caused 84% of consumers in U.A.E. to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (87%) are most concerned about saving for a rainy day.
• Consumers in U.A.E. are also saving for investments (51%), retirement (37%) and international personal air travel (37%).
• The majority of consumers in U.A.E. (24%) plan to save between 11-20% of their income in the next six months.
More information on the Index can be found at the website www.masterintelligence.com
