Affluent Singaporeans are planning to spend more this year, especially on family holidays, followed by designer handbags, designer watches and designer clothes.
According to the Visa Affluent Study 2014, Singapore’s wealthy are feeling more optimistic about the economic situation, with more than half (52 per cent) of all respondents feeling this way.
The study shows that eight in ten (82 percent) respondents from Singapore intend to spend the same or more this year than they did in 2013.
The number of respondents that feel employment opportunities will deteriorate in the next 12 months has also halved to just one in five (21 percent) compared with the previous year (41 percent).
In the survey, almost half (45 percent) of affluent respondents from Singapore intend to increase discretionary spending in the next 12 months. Respondents are most likely to increase spending on family holiday (39 percent), followed by a night/evening out (33 percent) and fine dining (30 percent).
On average, respondents are willing to spend $6,900 on a family holiday, $700 for a night/evening out and $500 for fine dining.
Besides holidays, the most likely overseas luxury purchase among respondents is designer handbags (45 percent), followed by designer watches (31 percent) and designer clothes (30 percent).
But respondents who say they will increase discretionary spending in the next 12 months are least likely to spend more in the next 12 months on a bottle of wine and home entertainment system (13 percent each), followed by a bottle of alcoholic spirits and designer shoes (16 percent each).
For big ticket items, 51% intend to spend more on big ticket items such as cars, family holidays, watches and jewellery in the next 12 months. On average, the largest amount respondents are willing to spend on a car is 52% more than the maximum amount they spent on a car in the past one year.
They are willing to spend on average a maximum of $166,200 for a new car, $5,400 for a designer watch and $4,300 for jewellery, based on the survey results.
The most optimistic country in Asia Pacific is China with 69 percent believing their local economy will improve this year. At the other end of the scale, Indonesia has the largest reduction in the proportion of those who are confident about the local economic condition with less than half (48 percent) believing their economy will improve in 2014 compared to 65 percent last year.
The study tracked attitudes to spending among affluent Visa cardholders in 11 markets.
It was conducted between September 2013 and December 2013 by TNS Singapore on behalf of Visa. Demographics of the respondents were male and female credit card holders between the ages of 18-55 year olds and holders of at least one general purpose card (credit card) with monthly income sufficient to qualify for a platinum card.
In each of the 11 markets, except for the UAE and New Zealand, at least 500 interviews were conducted online with representative quotas of gender, age and income.
The study surveyed 5,169 affluent consumers in countries including Australia, China, Hong Kong, India, Indonesia, Japan, New Zealand, Russia, South Korea, Singapore and the United Arab Emirates.
Affluent Singaporeans plan to spend more in 2014