SINGAPORE: Affluent Singaporeans are planning to spend more on dining, entertainment and travel this year, and the willingness to open their wallets is being driven by an increased optimism in the local economy, said Visa.
According to the Visa Affluent Study, released on Tuesday (July 1), 82 per cent of affluent respondents from Singapore – defined as cardholders that earn more than US$100,000 (S$124,600) in annual income - intend to spend the same or more this year than they did in 2013. Sentiments that employment opportunities will deteriorate in the next 12 months also fell to 21 per cent, from 2013′s 41 per cent, it added.
Additionally, more affluent respondents are looking forward to an increase in household income, with 59 per cent expecting it this year compared with 51 per cent in 2013, according to the survey.
FAMILY HOLIDAYS, ENTERTAINMENT SPEND TO RISE
About 45 per cent of Singaporean respondents indicated they intend to increase their discretionary spending in the next 12 months, the study found. They are most likely to spend on the following:
- Family holiday – 39 per cent
- Evening or night out – 33 per cent
- Fine dining – 30 per cent
On average, respondents are willing to spend S$6,900 on a family holiday, S$700 for a night or evening out and S$500 for fine dining, according to the survey.
Ms Ooi Huey Tyng, Visa Country Manager for Singapore and Brunei, said: “There is a more positive outlook among affluent consumers as shown in the increase in year-on-year optimism about the local economy. This suggests an increased willingness for people to open their wallets, especially for discretionary spending categories such as dining, entertainment and travel.”
Visa commissioned TNS Singapore to conduct the survey between September and December 2013, and a total of 5,169 affluent consumers were polled from 11 countries, including Singapore, Japan, Indonesia, Russia, and Australia. At least 500 interviews were conducted online with respondents in each market, except UAE and New Zealand.
Rich Singaporeans to spend more this year: Visa survey