Singaporeans putting more money into investments: UOB study

Close to half, or 46 per cent, of millennials indicated that they plan to invest more. ST PHOTO: KUA CHEE SIONG

SINGAPORE - More Singaporeans are looking for ways to grow their wealth, a study by UOB has found.

The results of the UOB Asean Consumer Sentiment Study, released on Friday (Nov 19), found that close to two in five respondents, or 38 per cent, put more money into investments in the past six months.

This is an increase of 8 per cent from last year.

The study aims to provide a better understanding of Asean consumers, including those from Singapore, while the region undergoes social and economic transformation.

Nearly half, or 46 per cent, of the Singaporean millennial respondents indicated that they allocated more money to investments in the past six months, and plan to invest more. Millennials are people aged 24 to 39, according to the study.

This compares with 11 per cent for those older than 55; 35 per cent for those aged 40 to 55; and 29 per cent for those aged 18 to 23.

Among the Singaporean respondents, 51 per cent said they are choosing to buy more stocks and bonds.

At the regional level, the study found that consumers across Asean are keeping to the financial habits they had adopted a year ago amid the Covid-19 pandemic.

More than half, or 53 per cent, of the respondents in the region said they have not changed their budgeting in the last six months, compared with the 60 per cent in the previous edition of the study who said they adjusted their budget at the start of the pandemic.

In the area of personal finance, more than six in 10 respondents indicated uneasiness around increased household expenses (64 per cent), meeting long-term financial commitments (63 per cent) and a decline in their savings and wealth (65 per cent).

One in three respondents (33 per cent) expects that it will take two years or more for Covid-19 to be contained in his country, an increase of 18 per cent from the previous year.

Two out of five respondents (40 per cent) believe it will take two years or more for life to go back to the way it was before Covid-19, a rise of 15 per cent from the previous year.

Ms Jacquelyn Tan, UOB head of group personal financial services, noted that financial well-being plays an important role in people's mental health as it "minimises the stress and anxiety that they experience, especially in these uncertain times".

"As Singaporeans adapt to the 'new norm' and get back on track with their lives, it is important that they continue to build their financial resilience by saving and investing for the long term.

"This will help to ensure that they are financially prepared for future uncertainties while staying on course in achieving their financial goals such as retirement."

This is the second edition of the study and it was conducted in July.

About 3,500 respondents from five Asean countries were interviewed, including 1,000 from Singapore and more than 600 each from Indonesia, Malaysia, Thailand and Vietnam.

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